FXStreet (Delhi) – Research Team at Goldman Sachs, suggests that while the most recent US labor market report was, top to bottom, quite firm but data elsewhere was not as strong, with both the ISM manufacturing and non-manufacturing surveys retreating.
Key Quotes
“Our CAI (Current Activity Index) fell to 1.7% in November relative to a 2.8% October reading and, on a moving average basis, has been trending lower for the last few months.”
“Our market-based US growth risk factor had been on the rise, but has stalled in the last week or two – in contrast to the market’s assessment of China risk, which continues to slide, and the market’s assessment of European growth risk, which is now improving. Indeed, the European PMI continues to gain ground, while the US PMI continues to slump.”
“From a market perspective, although we had seen some signs of improving cyclical performance – as measured by our Wavefront Consumer Growth basket and by the performance of the US industrial sector relative to the S&P – without much incremental support from the incoming data that outperformance has waned.”
(Market News Provided by FXstreet)