No upside in employment in the ISM Services data that we saw in ISM Manufacturing on Monday. Per the ISM:
WHAT RESPONDENTS ARE SAYING ...- "General economic tone is still 'wait and see.' Capital outlays are postponed for durable goods." (Health Care & Social Assistance)"Cost-cutting efforts continue." (Transportation & Warehousing)
- "Overall business activity increasing — forecast even better market conditions in the coming months." (Construction)
- "Business climate remains encouraging, but recovery will remain slow in rebounding." (Professional, Scientific & Technical Services)
- "The weakening U.S. dollar contributing to upward pressure on commodity prices." (Wholesale Trade)
Source: ISM
Yeah. Dollar is expected to weaken further against Euro and hence we see commodity prices strengthening further going forward.
ReplyDeleteAs a consequence, real consumption comes down because of weak consumer. Over the next few quarters I am visualizing a scanario where equities see erosion and a prolonged bull market in commodities especially metals, gold and crude.