U.S. economic data boosts risk markets 🧐
Yesterday, U.S. stocks rose more than 1% and the 10-year U.S. Treasury yield fell sharply by more than 13 basis points. New home sales in the United States rebounded by 4.4% in July, significantly higher than market expectations. Due to insufficient supply of second-hand homes, both new and second-hand home prices have been under significant upward pressure. The median sales price also rebounded by 4.8% this month; another On the other hand, S&P PMI data weakened, with the manufacturing PMI returning to the contraction zone (47 vs. 49 expected). New orders fell for the fourth consecutive month, the employment index was at the lowest level since January, and the service PMI also fell to last year. The lowest level since October, barely staying in expansion territory.
The softer US data coincided with weaker PMIs in Europe (47 vs 48.5), Germany (44.7 vs 48.5) and the UK (47.9 vs 50.4), with the UK composite PMI hitting a 31-month low, which S&P commented called "inevitable" contraction as a severe decline in manufacturing coincides with a further weakening of the services sector's spring recovery."
