The day started off with a selloff but ended in a generally positive note despite a disappointing September industrial production data from US today. Can’t say I can explain this market move. But I generally think it’s a time to start taking some chips off table when economic data trends south while asset markets trend north.
Stocks would probably be driven more by earnings than macro especially now the earnings season is on in earnest. This season isn’t off to a blistering start like we saw in the past few. We will see how things shape up. I do believe the earnings will be good enough to provide some tailwind for US stocks another week or two.
Switching into DAX from Nikkei has served well as DAX has outperformed lately.
Tomorrow is German ZEW economic expectations for October as well as US housing starts. Would be interesting to see if strengthening Euro is having any impact on business outlook.
This week Thursday shaping up to be particularly big with major China data (GDP, inflation, retail sales, industrial production), European October flash PMI and US initial jobless claims.
I feel particularly uneasy at how quiet the market has been lately.
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