The U.S. Flash Manufacturing PMI has come in with a decline, not only did the result of 53.7 miss its estimate of 55.2, but it came in below last month’s number of 54.4.
While the German Manufacturing PMI number was better than expected the combination of a poor Chinese and American number will not have a positive effect on investors. Optimists continue to abound in the broad markets and bourses have held onto plenty of their gains via equities, but data from Asia and the States has been a mixed bag as of late and this will continue to given bears ammunition who believe corporate stock is overbought. While the financial crisis of 2008 seems to be a distant memory for many there are some in the crowd who believe we have not escaped all of the problems that arose from the turmoil. The Spanish Unemployment Rate of 26.0% that was announced today should be enough to rattle even the most bullish and remind them that all is not wine and roses.
Gold has come off of its lows today and has gone right back to resistance. The price of the precious metal as of this writing is now 1252.00. Enough speculation has come into the Gold market to bring about a rollercoaster like ride. The consolidation in the Gold market appears on this ice and traders will need to move fast. Digital Markets Advisor continues to be a doubter and believes bears still control this commodity market.
The Crude Oil Inventories report is due in a short while and this will likely provide another spark for WTI which has seen some rather fast trading the past week.