One Minute Macro Update
US: Futures higher in the early morning as the market rings in the New Year. With today's data featuring the ISM readings for December, expectations are high for the start of 2011. The week ahead will likely be bolstered by a slew of economic data that should serve to feed the positive tone, however we caution that the risks to the global economy remain high.
Europe: London closed and eyes return to the periphery with issuance scheduled this week from France, Belgium, the Netherlands, Malta, Germany and Portugal. We believe the European debt story will continue to accelerate in 2011 and that a true fiscal union combined with haircuts will be the ultimate solution. We also note that with US QE2 priced in (and before the inevitable QE3), the divergence between the EUR and European sovereign credit is unsustainable.
Asia: China December manufacturing PMI fell to 53.9 from a November 55.2 reading. The slowdown here will continue as tighter policy takes hold and extremely high levels of new loan growth are dampened.
Via Brian Yelvington of Knight Capital
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