It’s been a very strange day in the market and the economy, starting with last night.
Let’s just walk through it:
First, at around 10 PM ET last night, we got the Chinese GDP report, which was weaker than estimates on the headline, but actually really strong on the internals, as retail sales and industrial production both were very robust.
But markets got clubbed on the news, with Hong Kong really getting crushed last night.
Europe started sharply lower, with the DAX off 1.7% in early going. Murmurings about France losing its AAA sent the CAC-40 2% lower. But then, suddenly markets started rising.
Initially stocks dove, as you would expect, but now the financials are surging, with CDS improving on both.
And of course, the market is now rallying as a whole, erasing some of yesterday’s loss, and generally not doing exactly what you’d expect.
Bottom line: Lots of mixed data, and unexpected market turns. Good times.