by Martin Armstrong
Armstrong Economics
Asia was a mixed with a strong Hang Seng (+0.75%) an unchanged Nikkei and a slightly weaker Shanghai (-0.55%), which after yesterdays ECB Q+A session was actually very promising performance. However, it was not to last and as soon as Europe opened then the selling began. It started in the fixed-income markets but by afternoon had infected equity markets also.
The DAX, CAC, IBEX and FTSE all closed lower on the day but were heavily influenced by the US markets as soon as they opened. German Export data did not help as was expected at 0.25% (m/m SA) but came in at -2.6% whilst the previous release was +0.3%. French Industrial output was also weak, expected at +0.2% but was released at -0.6%. With all core European indices losing over 1% many were thankful this is the last day of the week.