South of the border yesterday, the Empire State Manufacturing Survey, Industrial Production and Capacity Utilization all came in below analysts’ projections; however none of these indicators appeared to create much noise on financial markets, as U.S. equities barely moved on Monday.
Across the Pacific, Japan’s Nikkei 225 Index rallied overnight, as Prime Minister Shinzo Abe announced that he would postpone the scheduled sales tax increase by 18 months and was planning an election in order to extend his mandate on the heels of the news that Japan officially slipped into recession over the weekend.
Also overnight, Germany’s ZEW Economic Sentiment Survey breathed new life into European equities, when it came in with a reading of 3.3, or 1.6 higher than forecast. As many analysts see Germany slipping into recession, any sign of vitality from the eurozone’s powerhouse economy is well received by investors.
On deck today, U.S. Producer Price Index figures will be announced this morning. Philippe Shebib
Range of the day : 1 1250 1.1250 – 1.1350
Range of the next 5 days: 1.1150 – 1.1550
