Data Revisions Indicate Loss of Economic Momentum

Data revisions point to an economy that is losing steam

Highlights

• Data revisions point to an economy that is losing steam

• Consumers continue to binge on a credit heavy diet…

• … but delinquency risks persist, clouding the outlook

• The case for bonds remains strong

While We Were Sleeping

Global equities are on much more positive footing in the overnight trade compared to how they began the week, though the moves are much smaller ahead of tomorrow’s key CPI report (and momentum appears to be waning as we move to publish). Asia rebounded after yesterday’s pullback — India (+0.8%), Singapore (+0.7%), China’s Shanghai Composite (+0.3%), and Hong Kong (+0.2%) were all up. Japan’s Nikkei 225 (-0.2%) and Korea (-0.5%) were the lone decliners. Europe continues its march higher (Stoxx 600 up +0.4%), led by France (+0.6%) and Germany (+0.2%). In the U.S., futures are mostly in the green though the Nasdaq is heading the opposite direction (Apple down -1.2% in the premarket trade after its product release yesterday failed to wow investors; the banks are performing well on the news that they will only face a +9% increase in capital requires under the new Basel III endgame rules, which is less than half the +19% originally planned). All market quotes are time-stamped to 4:30 a.m. ET.