U.S. economic activity indicators on Tuesday accelerated the relentless march higher in U.S. interest rate expectations and confirmed that, for financial markets at least, good news is most definitely bad news.
Not one of the 18 economists polled by Reuters expected the services PMI to bounce back above the 50.0 threshold between contraction and expansion, and the shockwaves were felt across all asset classes. As analysts at Schroders put it:"A new regime in policy and market behavior is unfolding before our eyes."
China appeared to signal support for Russia and the Wall Street Journal reported that Chinese leader Xi Jinping is preparing to visit Moscow for a summit with Russia's president Vladimir Putin in the coming months.
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