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Sentiment smorgasbord

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  • Manufacturing sentiment dominates today. The Euro area is seen with an unenthusiastic sentiment reading, offering a signal of weak growth. Market attention is likely to focus on the French and Italian data, with investors prejudiced in favour of bad news.
  • The US ISM manufacturing sentiment number is expected to gain to a robust 59.5. Small differences in the level, when the level is as elevated as this, are not perhaps terribly important - the general picture is of an economic expansion that the Fed needs to react to.
  • China's official PMI of manufacturing sentiment came in at 51.1, beating the market consensus by 0.1. Anyone who has so much faith in Chinese official data as to believe that beating expectations by 0.1 matters should perhaps rethink.
  • Japan's Tankan survey showed that life is pretty good if you are a large manufacturing company (and probably an exporter). If you are a small business (the bedrock of an economy) or a service sector company (the majority of the economy) then things are not so good.

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