The markets are being tempered by the fact that last week European leaders (sorry I meant Germany) have agreed to increase the bailout facility with a few extra hundred billion euros and that confidence surveys have not yet fallen off a cliff. China remains a crucial piece in the whole jigsaw and their PMI numbers overnight have given the market a little boost as we commence this second quarter. 09.05 And yet more manufacturing data: eurozone PMI for March is 45.4, down from 47.3 in February, Greek PMI is up to 41.3 from 37.7 in February and German PMI was 48.4, down from 50.2 the month before. Just as Spain's shrinkage will stoke fears that the country's back in recession, the eurozone fall will cause concern among investors that the single currency area is contracting. Here's a table of today's PMI data: 08.53 More manufacturing data now, this time France, which, like Spain, has contracted. The PMI fell to 45.6 from 50.8 in February. 08.39 It's not all good new this morning: Spanish manufacturing data has just been released and, unlike China and Ireland, it saw a contraction during March - it's 11th consecutive monthly fall. Markit's PMI for the country in March was 44.5, down from 45 the previous month. This will add weight to concerns that Spain has officially slipped back into recession. The IMF predicts GDP will shrink 1.7pc this year. 08.25 European markets have taken their cue from Asia this morning and risen in early trading. Positive manufacturing data from China eased concerns about the health of the world's second-largest economy, and a rise in Irish manufacturing has been an additional bonus. The FTSE 100 is up by 0.47pc, the DAX has climbed 0.9pc and the CAC has risen 0.49pc. 08.19 Irish manufacturing data is out, and it's good news: production rose last month, the first climb since October. The index hit 51.5 (a figure above 50 shows expansion), up from 49.7 in February. 08.11 Jean-Claude Trichet has given The Daily Telegraph his first public interview since stepping down as the head of the ECB in October. It's an interesting read, and a perfect diversion while we wait for the European markets to open and settle down. "The problems of the governance of the euro are severe," he warns. 07.59 As well as the first day of Q2, today is also the first trading session since eurozone finance ministers gave the nod to combining the two rescue funds so that €500bn is available to shore up struggling nations. We'll see how markets react to that in the next few minutes. 07.24 It's the start of the second quarter today and European futures point to a positive beginning for the main markets: Germany's DAX and France's CAC are predicted to open up by between 0.2pc and 0.3pc. Chinese manufacturing data showing that production rose for a fourth straight month has also cheered investors. The state-affiliated China Federation of Logistics and Purchasing said that its PMI rose to 53.1 in March. Although conflicting figures from HSBC showed a contraction...