Politics trumps economics
- The US presidential race experiences the Super Tuesday primaries. This may be the point when markets start to pay attention to the candidates' policy platforms, as the race slowly clarifies into two candidates.
- Purchasing managers' data dominates the economics calendar. China's service and manufacturing numbers were weaker than expected. The central bank chose to ease regulatory policy yesterday (a reserve requirement ratio cut).
- Japan's PMI data was basically stable, but capital spending and consumer spending both disappointed market expectations once again.
- Euro area data is seen continuing to point to moderate expansion. The US ISM, however, is seen weaker in line with the regional manufacturing PMI data. Investors still give relatively high weight to the ISM data.