The global PMI debate
Asia Equities
As bearish as I was this morning about the current state to the global economy, investors buying impulse driven by central bank easy money policies remains alive and well.
Weakening global PMI's are usually a harbinger of doom. But investor's do need to respect the fact that while PMI's peaked in December 2017, there is a chance they could as quickly trough with the help of China stimulus..
But with geopolitical tensions mounting across the region and export markets floundering unless there's a positive surprise from next week’s US-China trade meeting, its challenging to support a bullish view.
Liquidity induced equity market support is contagious, but to what end will the central bank easy money euphoria extend should be the question.
But the bigger question should really be why I am still thinking about this as it's Friday.!!!
Korean Won
USD/KRW is breaking above technical resistance. With geopolitical tensions brewing north and east and export dropping like a stone, the pair looks prone to test 1190 level.