A big miss on German PMI today with the Flash Manufacturing coming in at 50 (exp 51.5) and Services coming in at 52.1 (exp 54.5). Since Germany is carrying Europe pretty much this number will come as some concern to Euro Leaders and the ECB increasing the likelihood of all out QE in the Eurozone, and that lovely word QE is just what the stock market loves, and most likely will propel Dax and Cac to further higher moves.
This is the environment that the central bankers have created, but when things turn it will turn hard!
In terms of reaction today, we had the expected push up in the Bund, with a 30 point move in the space of 5 minutes with resistance at 151.52 which was Mondays lows. A break up above this level will bring about 151.77 as the next target, and then 152.10, the week highs the next target after that.
Across the channel, the UK benefited from better retail sales, with the divergent growth between Eurozone, Japan, UK and US becoming ever wider. Because of this its unlikely that the US or UK will have the balls to pull the trigger on rates leaving this easy bias around for longer.
ES is down 7 dollars as I write, and Dax down 40, BTFD?
This is the environment that the central bankers have created, but when things turn it will turn hard!
In terms of reaction today, we had the expected push up in the Bund, with a 30 point move in the space of 5 minutes with resistance at 151.52 which was Mondays lows. A break up above this level will bring about 151.77 as the next target, and then 152.10, the week highs the next target after that.
Across the channel, the UK benefited from better retail sales, with the divergent growth between Eurozone, Japan, UK and US becoming ever wider. Because of this its unlikely that the US or UK will have the balls to pull the trigger on rates leaving this easy bias around for longer.
ES is down 7 dollars as I write, and Dax down 40, BTFD?
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