Futures sold off after the close – which confounded the buy the dip crowd who were already surprised by the late day fade. Chinese Manufactured Manufacturing PMI came in at 51, vs 50.9 expected and after stories of constricting credit in China, is a modestly welcome surprise.
Not strong enough to carry the day and I think Europe will open weaker based on the less than enthusiastic response to LTRO2 here and growing concerns about Greece, Portugal, and Spain. Thankfully the Italian dictator doesn’t think he will need another term now that all banks are buying Italian bonds and spreads will never widen again.
The ISDA press release tomorrow should be fun.