It is a tough way to start the
week. Negative economic data out of
China, coupled with increasing tensions and bloodshed in Ukraine has investors
on the defensive this morning. China
PMI, a measure of industrial activity was revised downward. A revised reading of 48.1 shows that the
China economy is stumbling. Any reading
below 50 indicates business contraction.
More importantly, several Ukraine soldiers were killed as violence
escalates in Ukraine. Other former
members of the Soviet bloc look on with great concern. On a positive note, the US economy continues
to show strength with a strong ISM Services reading of 55.1, the highest in six
months. The ISM services data is
important because services represent 75% of US economic output. That data has helped stocks to recover some
opening losses. Gold is up strongly on international tension and oil is up
slightly, but close to flat-line.
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