Upbeat PMIs data reduce risk of recession and increase FED's willingness to hike higher rates, which puts pressure on Wall Street
The first session on Wall Street this week did not start favorable for bulls. Yesterday, due to the celebration of Presidents' Day trading in the US did not take place. Today, shortly after the US open, futures tied to major benchmarks lost over 1%. The US100 is the worst performer with a loss of approx. 1.15% and is currently trading at the lowest level since February 1! PMI data turned out to be much better than expected - although manufacturing index is still in contraction territory -below 50 points, however services index jumped above 50 points - mainly thanks to export orders. Taking into account fresh data, the Fed should not hesitate to continue raising rates.
The Composite PMI shows that the risk of recession has significantly decreased. Source: S&P Global
US100 fell sharply, over 1% in its first trading session of the week. Index broke below recent local lows and is trading at its lowest level since February 1. Break below support at 12,200 pts, could potentially open the way towards the 12,000 pts mark. Source: xStation5
