US PMI numbers in the Services sector showed a contraction from last month. The figure released at 53.5 was still comfortably above 50 but slowing from the previous months figure of 55.8 in December.
Manufacturing PMI is still in a depressed state closer to the 50 level but Investors hoped that buoyant PMI’s in the services sector would be enough to offset the slowdown in manufacturing. The disappointing data highlights concerns that the slowdown in manufacturing could be spreading to other sectors. The US Dollar weakened off the back of the news as investors dramatically pulled back their expectations of more rate rises in 2016 and with that a more accommodative economic climate for longer. Brent Crude rallied 7% overnight off the back of the weakening dollar Tomorrows Non-farm payrolls number for January in the US will give us more insight into the state of the world’s largest economy.
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A chaotic start to the year, but don’t panic!
A chaotic start to the year, but don’t panic!