Succinct summation of week’s events:
Positives:
1) The ECB finally delivers bond buying details but not much different than what’s been expected for weeks.
2) German exports, IP and factory orders all better than expected in July.
3) Aug ISM services index unexpectedly rises to 53.7 from 52.6 but ISM said “respondents’ comments continue to be mixed, and for the most part reflect uncertainty about business conditions and the economy.”
4) Initial Jobless Claims fall to 365k from 377k.
5) Aug Vehicle Sales total 14.46mm SAAR, the best since the clunker month of Aug ’09 when it jumped to 14.6mm from 11.4 in the month prior.
6) Canada’s Aug jobs figure rises more than 3x expectations by a US population adjusted number above 300k.
Negatives:
1) Aug Payroll growth sluggish again with only 96k net jobs added, 103k of which from the private sector, about half of what ADP predicted yesterday. Unemployment rate falls to 8.1% but due to sharp drop in labor force size and decline in household survey. Participation rate falls to lowest since ’81 and no increase in avg hourly earnings m/o/m for the 1st time since Nov.
2) Aug ISM mfr’g remains below 50 for a 3rd straight month at 49.6 and ISM says “Comments from the panel generally reflect a slowdown in orders and demand, with continuing concern over the uncertain state of global economies.”
3) French unemployment rate for Q2 rises to 10.2%, the highest since Q3 ’99, 4)Australia reports an unexpected drop in Aug payrolls.
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