Not everything is so subdued ahead of the elections and Fed decision.
Copper is up roughly 2%. Crude oil is jumping 1.4%. The Shanghai Composite is up 2.5%. And the Hang Seng is up 2.4%. The reason, of course, is China which had good numbers on its purchasing managers index of manufacturing activity earlier Monday. WSJ.com’s report says:
China’s official Purchasing Managers Index rose to 54.7 in October from 53.8 a month earlier, the China Federation of Logistics and Purchasing said Monday. A PMI reading above 50 indicates an expansion, while a reading below 50 signals contraction.
A China PMI index produced by HSBC Bank rose to 54.8 from 52.9, one of the largest on-month rises since the bank started issuing the data in 2004.
“If anything, the engine of growth is speeding up and running faster than people were expecting,” said Glenn Maguire, Société Générale’s chief economist for Asia-Pacific. “It’s certainly not stalling.”
We’ll get the U.S. version of the same report at 10 a.m. (Expectation is for 54.3 reading.) But analysts at BNP Paribas expect to see an ongoing divergence between China and the U.S., part of the thesis behind the “go-long emerging markets” bet everyone is making at the moment.
