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Ebola and weak data unsettles the markets

Published Thursday, October 2nd, 2014

On the first day of the new quarter stock market bulls took a series of heavy punches that left them reeling but still on their feet. The punches came from all directions and the net result was another day of dollar strength, another day of falling safe haven bond yields and another day of stock market weakness. If it turns out next week that the falls are seen as just another buying opportunity it will be the bears who are reeling.

The final PMI readings for manufacturing in the eurozone were worse than the flash numbers coming in for the region as a whole at 50.3 from a flash of 50.5 and a final August number of 50.7. The particularly bad news was that the German number came in at 49.9 from 51.4 in August. There was also contraction in Austria and of course France.

In the US the ISM index of factory activity fell to 56.6 in September from 59.0 in August. US construction spending also fell, against expectations. On top of this came the unsettling news of the first confirmed case of Ebola in the US which had a negative effect on the transportation sector of the S&P and Dow. The World Health Organisation believes that the number of Ebola deaths are way above the 3,338 reported and numbers as high as one million eventual Ebola deaths are being mentioned.

to read the rest of the report, please click here 

Posted by David Hufton