Thursday, June 30, 2011

Econodata Matters The Most

Chicago PMI is out and it is way better than expected. After Richmond FED Index earlier in the week on the better side as well, it is now up to ISM tomorrow to confirm the rebound in manufacturing. Japan industrial production came in higher earlier as well. If manufacturing around the world is going to rebound it will take all risk assets up with it for the time being.

On the other side the employment is lagging. US and German unemployment claims were disappointing today - no wonder why German retail sales number was atrocious overnight. We also got a very weak French consumer spending number. Corporations are finding more and more ways to keep the productivity high while holding the payrolls at current level. This is a blow to the governments around the world and a huge drag on economies, as consumer consumption is closely correlated with employment. We await NFP next Friday...

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