One Crucial European Economic Indicator Continues To Get Less Ugly

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The global financial markets are selling off thanks to weak Chinese economic data and concerns that the Federal Reserve could start scaling back its stimulative monetary policies.

Spain also completed a bond auction that was met with weak demand. This reminded some of the ugliness experienced during the height of the euro zone's debt crisis.

But, there was one somewhat encouraging economic report today: eurozone purchasing managers index (PMI).

The Flash, or preliminary, reading for June climbed to a 15-month high of 48.9, up from 47.7 in May.

While any reading below 50 signals contraction, the improving number is a sign that things are getting worse at a slower pace.

The manufacturing subcomponent improved to 48.7 from 48.3 and the services subcomponent improved to 48.6 from 47.2.



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