China’s state sector weighted services index fell to a 1 yr low at 48.4 in Feb vs 52.9 in Jan. In contrast, the private sector weighted HSBC index rose 1.4 pts to 53.9, a 4 month high. At the same time, China has set a goal of 7.5% GDP growth in 2012 after the 8% target seen from 2005 thru 2011. The inflation goal of 4% remains unchanged. India’s PMI services index fell 1.5 pts and both the Shanghai and Sensex indices were lower overnight. In Europe after seeing 777b euros deposited overnight with the ECB last week, 821b euros were sent to them last night for 1 day. The Feb Euro zone mfr’g and services index was revised slightly lower. Following last week’s news that Spain’s ’12 budget deficit target will be above the EU agreement, 5 yr CDS in Spain is rising for a 2nd day to the highest in 2 1/2 weeks to 385 bps, above Italy at 367 bps. The cost of insuring Portuguese debt is at a one month high. In the US, the ISM services index today and Friday’s Feb payroll figure are the two key data points of the week.

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