The United States
Let’s start with the US where we apparently had a surprisingly sharp recovery in the service sector this month. Here is the PMI chart from Markit Economics.
It’s worth reading the comment from Markit below. The chart on the bottom shows the composite PMI (including manufacturing).
Source: Markit Economics
Combining the above with rising wage growth, higher inflation expectations, tightening credit spreads, etc. and we got ourselves a rate hike coming up.
The probability that the Fed will move by year-end is now 74%.
1. In other US developments, mortgage applications for house purchase declined to the lowest level since January. Part of the issue is the ongoing tightness in the mortgage market.NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas; or the free eLetter for an introduction to our work. You can also keep up to date with plenty of actionable public content at NFTRH.com. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.