* US Manufacturing ISM beats expectations, rises to 48.9 in July from 44.8 in June. Solid gains seen in New Orders, Production and Employment components.
* ISM’s Ore sees Manufacturing hitting 50 or above next month, but syas that data is more positive than the comments coming from their members.
* US Construction Spending rose 0.3% in June surpassing estimates for a fall of 0.5%.
* Global PMI hits 50, a 14 month high.
* S&P Index and Futures rise above 1,000 for the first time since November 2008.
A good day for the risk on brigade with Manufacturing PMI’s across the globe beating expectations. Eur/Usd opened the NY session at 1.4325 after performing strongly in Europe after a succession of upbeat PMI data from the UK and Europe. This risk on mood was only enhanced by a double dose of good news as US ISM and Construction spending easily outpaced forecasts. An earlier attempt to break 1.4350 had been attempted but received short shrift, but the data saw a more convincing break and 1.4400 was reached with comparitive ease. Better than expected Ford car sales added to the bullish tone with Eur/Usd hitting a day’s high at 1.4445, before retreating gently lower as profit taking set in. Bids at 1.4400 kept any downside move in check.
Cable also came to the party with a rise from 1.6790 after the positive UK data not arrested until we hit 1.6987, just shy of many people’s 1.7000 target.