US stocks jump but economic data signal weakness

Stocks, especially in the US, staged a strong rally on Monday. The S&P 500 jumped 2.3 percent to 1,162.95.

Economic reports on Monday, however, mostly provided more indications that the global economy is weakening.

In the US, economic reports were mostly negative. New home sales fell 2.3 percent in August to a six-month low. The Chicago Fed National Activity Index decreased to -0.43 in August from +0.02 in July, with the three-month moving average edging down to -0.28 from -0.27. The Dallas Fed's general business activity index fell to -14.4 in September from -11.4 in August although the manufacturing production index did rise to 5.9 from 1.1.

European economic data were also mostly negative. In Germany, the Ifo business climate index fell to 107.5 in September from 108.7 in August. In Italy, the consumer confidence index fell to 98.5 in September, the lowest since July 2008, from 100.3 in August.