Market Update


Good afternoon

I do not read too much into the Chinese PMI, done at a time of enviromental/winter closures, and just ahead of the long Chinese New Year holiday. The German PMI has been weaker again - still, it´s much higehr than a year ago and deep in growth territory. Nevertheless - there is some speculation, that the economy might be held back by a shortage of skilled labor.

US numbers today showed no surprises, and the market is probably relieved, that there are no signs of inflation as yet - PCE Deflator was um by 0,4/1,7% resp.

India surprised to the upside yesterday, with 7,2% growth in last Quarter, as construction moved by 6.8%. Certainly not enough to make up for potential weakness in China - but this is very commodity-consuming growth in a country, which has 300 mill people living without electricity and one, which has a strong trend of urbanisation ahead of itself.

From glut to shortage - in some parts of the world, especially Europe, power stations are short of gas, driving local prices significantly higher. 

Bonds are stronegr across the markets - but European equities are getting a hammering. I am not really sure, why this is the case...

I fear nothing on the micro front today!

have anice evening