US stocks edged lower following mixed economic data that still leaves the inflation risk in play. The earnings season is heating up quickly and if Microsoft or Texas Instruments are too cautious about the outlook, it could kill risk appetite.
The US flash PMIs saw steady improvements in both the service and manufacturing sectors. They also ended a seven-month period of declining input prices. While the PMIs are positive for growth prospects, it raises concern about inflation as faster increases of costs burdens are weighing heavily on private sector businesses.
The impressive US PMIs matched the eurozone’s strong prints, which could support the argument that both the Fed and the ECB can keep delivering their respective rate hikes. Services deteriorated further, so the UK PMIs were disappointing.
A lot of major stocks on the NYSE had some wild moves as low volumes were accompanied with prices that didn’t match up to the fundamentals. For traders who were openly trading, incorrect prices can cause chaos. A technical problem will cause many traders to lose their opening prices. This chaos will…