Perhaps the good ship won’t be sailing after all.
The market reaction to Wednesday’s better than expected US ISM report:
RTRS-US TREASURIES EXTEND LOSSES AFTER SURPRISINGLY STRONG ISM MANUFACTURING REPORT
RTRS-US 10-YEAR TREASURY NOTE FALLS ONE FULL POINT IN PRICE AFTER ISM MANUFACTURING DATA
US 30-YEAR TREASURY BOND FALLS MORE THAN TWO POINTS IN PRICERTRS-TREASURIES
DOLLAR RISES VERSUS YEN AFTER US ISM MANUFACTURING DATA
DOLLAR HITS SESSION HIGH VERSUS YEN AFTER US ISM DATA
And those surprisingly strong figures, via Reuters:
ISM REPORT ON U.S. MANUFACTURING SHOWS PMI AT 56.3 IN AUGUST (CONSENSUS 53.0) VS 55.5 IN JULY
ISM U.S. MANUFACTURING PRICES PAID INDEX 61.5 IN AUGUST (CONSENSUS 55.0) VS 57.5 IN JULY
ISM U.S. MANUFACTURING EMPLOYMENT INDEX 60.4 IN AUGUST VS 58.6 IN JULY
ISM U.S. MANUFACTURING NEW ORDERS INDEX 53.1 IN AUGUST VS 53.5 IN JULY
ISM U.S. MANUFACTURING NEW ORDERS INDEX FOR AUGUST AT LOWEST SINCE JUNE 2009
Time for the rally monkey?
Or should that new order figure give us all pause for thought?
Analysis to follow.
Related link:
Not another freaking economic indicator – FT Alphaville