Macro Morning: NASDAQ 5000!

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By Chris Becker

On the back of an interest rate cut by China, the American bulls returned to risk markets last night, sending the NASDAQ Composite to its previous 2000 bubble high of 5000 points, as the latest ISM manufacturing report was solid amid higher consumer purchases across the US. This good news was shadowed by a mixed series of secondary reports from Europe with EZ core CPI still hovering at 0.6% while headline rate remains in the deflation zone.

Some very minor good news on the job front with the EZ wide unemployment rate down to 11.2% as European peripheral bonds continued to rally as traders expect QE purchases to start very soon. European bourses on the other hand were flat, with the DAX barely moving although futures followed US markets in lockstep.

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