EmailToday is proving to be one of those rare days where the market has something to talk about other than Greece.
Granted, the ASE is leading the declines in Europe today, down 6% as market participants remain skeptical that the country can implement its new austerity measures, but there is at least one other topic.
Key countries have released preliminary manufacturing readings for the month of February that provide a read on the global economy.
The good news: HSBC's flash PMI figure for China increased from 48.8 in January to 49.7. The figure remains in contraction, but some investors feel that could lead to further loose policy from the People's Bank of China.
The idea that many areas of the Chinese economy remain strong/are improving while leaders have shown, at least to some extent, that they are willing to step in when necessary reinforces our belief that the Chinese economy will have a so-called "soft landing."
The bad news: The eurozone's preliminary manufacturing PMI moved back into contraction in February, falling from 50.4 to 49.7. A decline in Germany from 51.0 to 50.1 explains the move.
While France managed to move into expansion, rising from 48.5 to 50.2, today's data are just one example of how strict austerity measures will continue to impact growth across the continent.
European leaders are not standing pat, however. The minutes of the most recent Bank of England meeting showed two members voted to increase the size of its asset purchase program by larger than the agreed upon 50 bln pounds. That has pushed the pound lower this morning.
Staying in currencies, Japan and its export sector also continued to receive a boost from a weakening yen, which passed 80 against the dollar for the first time since July 2011.
Back in the U.S., the lone release on today's economic calendar is existing home sales at 10:00 a.m. ET (Briefing.com consensus 4.63 million; prior 4.61 million).
In the meantime, retailers continue to report fourth quarter results. Shares of Dell (DELL) are down 7% this morning after the company missed by a penny and issued downside first quarter revenue guidance, despite also issuing upside fiscal 2013 EPS guidance.
Subjective fears regarding Iran, Syria and oil prices also continue to mount. Crude oil futures are pulling back modestly this morning, but for the most part have held their recent gains .
Dave is a Research Analyst for Briefing Research, Briefing.com's institutional research service. To request a free trial, please email researchsales@briefing.com.
