Analysts at ANZ Bank New Zealand Limited explained that the new NAFTA deal boosted US equities with the DJIA leading gains, up 0.8% at the time of writing.
PAST PEAK BUT HOLDING STRONG:
“The September ISM eased to 59.8 (mkt: 60, last: 61.3) but still remains very close to expansion highs. New orders slipped to 61.8, from 65.1, with production lifting to 63.9, from 63.3. Overall, the ISM suggests economic activity is continuing to run hot, consistent with the FOMC’s interest rate profile. Meanwhile, construction spending came in weaker than expected at 0.1% m/m to be up 6.5% y/y. Private residential construction fell 0.7%, following a sluggish 0.2% gain in the prior month. While public construction spending jumped by 2.0% in August, following a 1.7% rise prior.”
MIXED:
“The Europe Markit manufacturing PMI fell 0.1pts in September to 53.2, slightly below market, while the UK PMI rose 0.3pts to 53.8, ahead of market. As expected, the euro area unemployment rate continued to trend lower, falling 0.1%pts to 8.1% supported by a 0.5%pt fall in Italy to 9.7%. Ongoing labour market strengthening is consistent with building wage pressures and gradual ECB normalisation.”
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