US Manufacturing PMI Boosts Equities

IHS Markit’s Purchasing Manager’s Index (PMI) for U.S. manufacturing activity rose to a reading of 51 in September from 50.3 in August, topping expectations of economists polled by Reuters. Services PMI came in slightly weaker than expected at 50.9.

The report follows dour business surveys from across the euro zone, which suggested growth had ground to a halt in the bloc.



Other economic reports on investor radar in the final week of the third quarter include core personal consumption data – the Fed’s preferred inflation gauge – and final reading of second-quarter GDP data.

Investors have been cautious about progress in Sino-U.S. trade talks after a Chinese agriculture delegation canceled a visit to Montana that pulled the Wall Street’s main indexes to their worst session in about two weeks on Friday and ended a three-week run of gains.

Still, U.S. and Chinese officials described the deputy-level trade talks last week, meant to lay the groundwork for high-level negotiations in October, as being “constructive” and “productive”.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza