Asian benchmark indices rallied strongly today, following news of a US debt ceiling deal. Benchmark indices rallied from 0.5% to as high as 1.83% (in South Korea). Europe and American indices rallied in the morning until US ISM data halted the rally.
The initial focus on trader’s sentiment was on a deal on US debt ceiling. By the time, the US opened, the sentiment has shifted over to economic data (Manufacturing). The US ISM manufacturing data came in at 50.9 which were lower than last month’s 55.3 in June. Economists were expecting a figure of 54.5.
From a global point, manufacturing indexes fell from Asia to Europe as global demand had weakened considerably. Factory growth from Europe to China lost momentum. As a result, there’s uncertainty of global growth from the previous recession.
In my opinion, economic data - Manufacturing data is the primary focus, ...
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