Photo: Wikimedia Commons
The last day of an excellent month (and also the last day of Q3) ended with a two-day skid.But first, the scoreboard:
S&P 500: -2.92
And now, the top stories.
- Japan totally bombed, as August industrial production tanked (thanks to drastic slashing from automakers), and a surging yen.
- But that selloff was basically contained. Chinese shares continue to laugh off talk of further tightening, with a 2.1% rally in the Shanghai composite.
- In Europe, there were a lot of headlines, but they were sound and fury signifying nothing. The official move to bail out Anglo Irish did little to worry bond or equity investors in Ireland. A Moody’s downgrade of Spain did nothing. A weird, rumour-mongery report on possible data fabrication by the Spanish government did nothing either. It was all “priced” you might say.
- Coming into the US morning, things were basically steady ahead of two key economic releases at 8:30 AM. Both the third revision to Q2 GDP and the weekly initial claims reports came in a bit better than expected. Then at 9:45, the Chicago PMI report came in very strong. For a while the market was moving nicely, but the wheels came off.
- The goldilocks economic data hammered gold, which had surged earlier to a new record.
- Bottom line: contrary to some fears, the market had its best September in ages, but it’s going out with an unimpressive two-day streak.