Last week the markets rallied on hype and hope of a potential trade deal between the US and China… and the fact it was options expiration week.
Wit those items out of the way, the markets will now begin to adjust to economic realities again.
Those economic realities? That the global economy is slowing… and not a little.
Indeed, the latest spate of economic data indicates just had bad things are getting.
- Japan’s core machine orders for the month of September was expected to drop 9%. It fell 18% instead.
- That same month, South Korea, a bell-weather for global trade/ growth,saw exports collapse 8%.
- And then China’s manufacturing PMI fell to 50 in September… just on the border of showing outright economic contraction. But given how heavily massaged Chinese data is to show growth,it is safe to assume the REAL number was MUCH lower(think 40).
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