A strong PMI release out of China sparked a risk on move overnight sending Treasury prices lower and equity markets higher. The manufacturing data from the world’s second largest economy helped to assuage fears that the global economy is slowing. In the US, retail sales missed estimates coming declining by 0.2% in February rather than increase by 0.2%. Some of the edge of the miss was taken off by upward revisions in the January number, which moved up to 1.7% from 0.6%. Later this morning we will see the release of US manufacturing data, with both Markit US Manufacturing PMI and ISM Manufacturing on the docket.
Hafizan Hamzah
Director, Investment Management Group