PMI data in Japan, Europe and US not that great
The PMI data out of Japan, Europe and the US was admittedly not that great today. There was hope that the global headwinds were abating. The data today weakens that view.
Stocks in the Europe (and the US) have reflected that shift (at least for now).
The closes for the European market are showing:
- German DAX, -1.77%
- Francis, -1.81%
- UK's FTSE, -1.42%
- Spain's Ibex, -1.26%
- Italy's FTSE MIB, -2.0%
In the US, major indices are also down sharply:
- S&P index -1.32%
- NASDAQ index, -1.53%
- Dow industrial average, -1.41%
The lower equities has money flowing into debt instruments. In Europe the flows were more into the German, France and UK debt. Below are the changes in ranges for benchmark 10 year yields.
The US is seeing even stronger flow, with yields down 5 to 7 basis points.
A snapshot of the major currencies, continues to show a flight into the JPY and CHF, and selling of the CAD and GBP. The USD has moved from being mostly higher earlier in the day, to mostly lower now. The greenback is only higher versus the CAD and marginally vs the GBP as weaker data, and some technical breaks (in the dollar lower direction) has helped reverse its course (i.e. the EURUSD, AUDUSD and NZDUSD have seen the price move above its 100 hour MAs after being much lower earlier in the session).
In other markets:
- spot gold is up $12.43 or 0.98% $1285.90
- WTI crude oil futures continue to get smashed. It is now down $-3.10 or -5.05% at $58.32. The low extended all the way down to $57.92. Today, as warned in recent posts, the contract cracked a key moving average level. The 200 day moving average was broken at the $60.46 today. That got the ball roling to the downside. It is currently testing its 100 day moving average at $57.88. That may stall the fall.
