Markets Hover After China Shares Good News

The Caixin Manufacturing Purchasing Managers Index, a private gauge of manufacturing activity in China, grew at its fastest pace since 2011 by coming in at 53.1 in August and that also marked the fourth consecutive month of expansion. That good news has apparently buoyed the spirits of investors worldwide in a sign that globally, the manufacturing sector is in a sustainable recovery. A little later this morning, a take on domestic manufacturing vitality will come from the Institute of Supply Management with a release of its PMI report right after Markit Services announces its own PMI measure for manufacturing. Both reports are for August and should show some slight improvement over July’s results. Some disquieting news from the EU also came our way with a report that Consumer Prices fell last month for the first time in four years as Europe struggles with its own fight against deflation.

For the moment, Treasury prices are little changed with the Ten-Year resting at 71 basis points and the Long Bond yielding 1.48%. Gold has benefited from the dollar’s weakness and today’s $22 gain has taken the price to $1,989. Crude oil is little changed at just over $43.