The slowdown in manufacturing is not just being seen in the US as Europe and Asia also reported moderation. China’s two mfr’g indices fell to 9 and 10 month lows, Taiwan’s PMI fell to a 5 month low, India to a 4 month low and South Korea to a 6 month low. Thailand raised interest rates by 25 bps to 3%. In Europe, the final euro zone PMI was slightly below the initial report and now matches the lowest in 8 months. UK mfr’g PMI fell to the lowest since Nov ’09. The US ISM mfr’g today will sum up the weaker regional survey’s that we’ve seen. Ahead of US May retail comps on Thursday, the ICSC lowered its projection to a 3% gain from a range of 3-3.5%. Even as mortgage rates fell to a 6 month low, the MBA said refi’s fell 5.7% and purchases were flat. II: Bulls 45.2 v 43 Bears 20.4 v 19.4 Correction 34.4 v 37.6
