In a few hours, PMI day begins, and we’ll get fresh manufacturing surveys from around the world.
There are three charts we’re particularly excited about seeing.
First is the Eurozone PMI chart to see how if the building recession is getting worse.
As you can see, the blue line has gone deeply negative lately.
The next chart, of course, is US PMI. What’s remarkable is that mostly it’s diverged from the European ones, and has somehow held up steady.
We’re about to get a good test of whether that outperformance has continued.
And then, finally, we’re excited to see German PMI specifically, since it really looks like the German economy is on the verge of cracking.
Bottom line: We want to know if the US is still decoupled from Europe, and we want to see how badly the German situation is getting.