U.S. Markets Are Closed, But Here’s What Else Is Going On

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U.S. Markets Are Closed, But Here’s What Else Is Going On by ZERO HEDGE | JULY 4, 2014

The rest of the world's financial markets would be better off closed July 4th may be a US national holiday, which means the S&P 500 won’t hit a record high on good news and a recorder high on bad, but judging by global trading volumes – already abysmal heading into today – one may as well give the entire world a day off. However, for now, global equities have come off the impressive, and curiously schizophrenic US-data inspired gains of yesterday which sent the DJIA over 17,000 yet which has resulted in an almost unchanged 10Y Treasury print since before the NFP release. Once again bonds and stocks agree to disagree. Asian markets are having a positive Friday helped by yesterday’s +0.55% gain in the S&P 500 and the first close above 17,000 in the Dow. However, as noted, it has been a beyond quiet session and more importantly, Treasuries continue to stabilise as if the NFP print never happened, and certainly disagree diametrically with the equities’ take on the payroll number. The Nikkei (+0.6%) is pacing regional equity bourses, spurred by the +0.4% performance of dollar-yen (once again a USD story more than a JPY weakening story). In Europe, while the periphery may pretend it is growing due to what is now a quarterly change in the actual definition of GDP, the core continues to deteriorate, only now it is not just France but Germany as well, whose latest factory orders print was a doozy, sliding -1.7% from 3.4% last month, far below the -1.1% expected. Domestic orders fell 2.5%mom after +1.1%, while foreign orders were down 1.2% mom after +5.0%. Orders from within the Euro area rose strongly for a second consecutive month (+5.7%mom after +8.9%). Orders from outside the Euro area declined 5.2%mom after +2.9%. Just how bad is the Chinese economy if it is starting to impact German exports now too?


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