DXY was firmly in place last night while the EUR and CNY sank:
The Australian dollar was mixed with DMs:
Soft versus EMs:
The gold jumped:
The oil was firm:
Soft metals:
Low Minors:
Em stocks too:
Junk was OK:
Treasury offers:
The bund curve is overwritten:
Australian bonds were offered:
Stocks held on:
It was the night of the PMI and the news was bad. Germany is sinking into recession after the collapse of the service sector:
▪ Composite output index PMI Germany (1) at 49.1 (August: 51.7). 83 months low. ▪ PMI Services Activity Index Germany (2) at 52.5 (Aug: 54.8). 9 months low. ▪ Flash manufacturing PMI Germany (3) at 41.4 (August: 43.5). 123 months low. ▪ Flash Germany manufacturing output index (4) at 42.7 (August: 45.8). 86 months low.
The latest PMI data revealed that the German economy contracted in September, as the slowdown in the manufacturing sector and the growth of the service sector slowed down. Job creation stagnated as companies reported declining demand and pessimism about business prospects.
The decline in production is accompanied by easing of price pressures, as average charges for goods and services have increased at the slowest pace for more than three years.
The Markit Flash Germany IHS Output Composite Index – which is based on approximately 85% of the usual monthly responses – was 49.1 in September, up from 51.7 in August and its first reading below the 50% mark. since April 2013. The rate of decline reported was the highest in almost seven years.
France follows:
Main conclusions: ▪ Composite production index Flash France (1) at 51.3 in September against 52.9 in August (4-month low) ▪ Flash France Services (2) activity index at 51.6 in September (53.4 in August), 4-month low Flash France index of manufacturing production (3) at 49.7 in September (50.7 in August), lowest in 2 months ▪ Manufacturing PMI Flash France (4) at 50.3 in September (51.1 in August), lowest in 2 months
The Markit Flash France IHS index of composite production, which stood at 51.3 in September, fell 52.9 in August and denoted the weakest expansion of the private sector. activity for four months.
Moderate growth was supported by an increase in activity in the services sector. That said, the growth rate recorded by service providers has slowed to its slowest pace since May and has been modest. At the same time, manufacturers found a contraction ground, although the last reduction was only slight.
All over Europe is:
Main conclusions: ▪ Euro zone composite output index (1) at 50.4 (51.9 in August). 75 months low. ▪ Euro Services PMI activity index (2) at 52.0 (53.5 in August). 8 months low. ▪ Flash manufacturing PMI of the euro area (4), at 46.0 (47.9 in August). Lowest level in 81 months. ▪ Flash manufacturing PMI of the euro zone (3) at 45.6 (47.0 in August). 83 months low.
The euro area economy was almost losing steam at the end of the third quarter, as demand for goods and services fell at the fastest pace in more than six years. The worsening recession in the manufacturing sector, where production has fallen at the fastest pace since 2012, is accompanied by a slowdown in the service sector expansion. Job growth and price pressure fell and sentiment about the outlook remained among the lowest in seven years.
Composite IMI Markit Eurozone PMI® fell to 50.4 in September according to a flash estimate, compared with 51.9 in August, signaling the slowest growth in output in the manufacturing and services sector since June 2013 The slowdown was due to new orders for goods and services. for the first time since January, services fell at the highest rate since June 2013.
Managing a continent-wide mercantilist business model in times of trade wars is obviously not a very good idea. Currently, the world has two, in China and Europe, and both are flowing together.
Although this is the case, the Australian dollar can only fall, as commodities are under pressure as growth decelerates and the US dollar becomes the only supply in the city.
