Macro Morning: April Fool

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by Chris Becker

April Fools Day surely sucked in a few more punters on the worldwide asset scramble in the face of seemingly endless stimulus emanating from central banks. But the flies are gathering in the ointment as the macro data rolls through showing a slowing in the 7 year economic cycle, post-GFC.

Although only a modest drop, the US ISM manufacturing survey printed well below expectations amid lower job growth estimates and an earnings season in the US that is going to kick off with the first retraction in earnings growth since the bubble began in 2009.

Let’s recap Asia yesterday first before heading into the overnight moves. Actually the biggest move in the session was the sudden drop in $ES (S&P500 24 hour futures) which screams to me some serious repositioning by large market movers going into what is traditionally the worst part of the year (Sell in May etc).

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