Plenty of cross-currents for the market this morning as geopolitics, India’s surprisingly big budget gap (how are they gonna fund the US if they can’t fund themselves?) and growing concerns that the global rebound may be even more anemic than first feared.
The next snapshot of the US economy comes via the non-manufacturing ISM report in about 20 minutes. A rebound to 46.00 from 44.0 is expected. If the dominant US service sector shows weakness, look for another round of FTQ (flight to quality) which should benefit the dollar and the newly muscular JPY.
US equities are an early bounce after selling at the open. The are now down about 0.4%, less than half their opening losses.
