Service sector sentiment. Contain your excitement
- Today is about service sector sentiment, stretching towards the horizon in all directions. China's index slowed to a 50 reading, causing consternation in spite of the fact that it is Chinese data, service sector data and sentiment data, and should therefore be considered with considerable caution.
- Euro area sentiment is less about the headlines and more about whether the divergence converges a little. The consensus expectation is for France to move out of contraction (France has not actually been contracting, but the service sector data suggests otherwise).
- The US senior loan officers' survey showed improving credit demand, supply and conditions - although foreign banks were marked out for being less inclined to lend (the parochialistion of capital in evidence, perhaps?).
- US non-manufacturing ISM data is expected to show an acceleration after the slowdown of last month, which would be consistent with other data signals pointing to a moderate pick up in growth at the start of this quarter.
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