The continuation of the global bull market in equities was confirmed yesterday with the Dow hitting a new all-time high. Bloomberg reports:
U.S. stocks rallied, sending the Dow Jones Industrial Average to a record, as investors speculated the worst may be over for banks and construction companies hurt by subprime mortgage losses...
The Dow's record caps a six-week recovery from a slump that helped wipe out almost $2 trillion in U.S. market value. The 30- stock gauge added 191.92, or 1.4 percent, to 14,087.55, above its previous closing high of 14,000.41 set on July 19. The Standard & Poor's 500 Index increased 20.29, or 1.3 percent, to 1,547.04, 0.4 percent shy of a record. The Nasdaq Composite Index gained 39.49, or 1.5 percent, to 2,740.99, the highest in six years.
Investors shrugged off a deceleration in global manufacturing reported yesterday. Clearly, investors are not worried of a slowdown as long as it bring on rate cuts.
Reuters reports the manufacturing slowdown.
The U.S. Institute for Supply Management said its index of national factory activity fell to 52.0 from 52.9 in August, below economists' median forecast for a dip to 52.6...
Overall, global manufacturing growth fell in September to its lowest level in just over two years, according to a global indicator produced by J.P. Morgan with research and supply management organizations. The index dropped to 52.3 in September from 53.1 in August...
The final RBS/NTC Eurozone Manufacturing Purchasing Managers Index (PMI) was confirmed at a 22-month low of 53.2, unchanged from the flash estimate and matching economists' expectations...
In Britain the CIPS/NTC factory PMI slipped to 55.1 in September from 56.1.
Last week, Japan had reported that its NTC Research/Nomura/JMMA Purchasing Managers Index edged up to 49.8 in September from 49.6 in August.
Yesterday's big report from Japan though was the Tankan, which showed that business confidence held steady close to a two-year high in September, with the sentiment index for large manufacturers unchanged at 23.
Meanwhile, manufacturing could still be accelerating in China, with the Purchasing Managers' Index rising to 56.1 in September from 54 in August, according to the China Federation of Logistics and Purchasing and the National Bureau of Statistics.
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