Good Morning. Summer has officially ended and so have vacations. Hopefully that means the return of more trading volume. This is a big week of economic data with ISM manufacturing on Tuesday and then non-farm payroll on Friday.
July ISM at 49.8 showed contraction in the manufacturing sector so Tuesday’s data is rather important for confirmation. With the FOMC meeting next week and the ECB this Thursday any negative news is likely to be met with buyers, still. Last night, China PMI data was horrendous and yet markets remained buoyed by hope.
There are plenty of other “sources of hope” as well with Spain recording a near 20% in deposit outflows this year. That is a staggering number and means the bank runs are accelerating not slowing. Other “sources of hope” include continued deterioration in the global economy as PMI data outside of China was also released Sunday evening.