Spreadex Market Update

Equity markets and risk appetite take a turn lower 



Equity markets and risk appetite have taken a turn lower from today’s highs following the ADP and ISM miss. Today’s ADP number will work to temper expectations and set the bar for Friday’s number lower, potentially allowing for upside should the market get the number it wants.

There still exists this sweet spot the market’s looking for with macroeconomic data. If jobs numbers can come in as expected and not beat by too much, then QE remains supported. Today’s numbers missed that sweet spot, printing a little too low. And the reaction was, unsurprisingly, negative.

Very few participants believe this is a healthy market. But so long as there’s easing and printing, few seem to care. Numbers that don’t frighten off QE but that do not cause concern are what the bulls are looking for.

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