French preliminary CPI estimates showed an increase of 0.70%, matching forecasts for March but on an annualized basis, French inflation fell 0.20%, missing forecasts of a decline of 0.10%, data from Insee showed. French consumer spending increased 0.60% for the month with previous month’s data revised higher from 0.60% to 1.0%. French producer price index fell 0.50% in March and contracting 4.10% on a year over year basis. Data from France has been mixed. Last week, French flash PMI manufacturing was softer than expected, rising to 49.6, down from February's 50.2, but flash PMI services was stronger, rising from February's 49.2 to 51.2 in March indicating that the services sector was expanding. French flash composite PMI was lower at 51.1 in March, but still showing expansion. Quarterly GDP reports released also showed a 0.30% Q4 growth while on an annualized basis; French GDP grew at a pace of 1.40%. The Bank of France expects Q1 2016 GDP to grow at a pace of 0.30%, down from initial forecasts of 0.40%.
China’s credit rating downgraded to negative
Daily Analysis - 01/04/2016