With two days to go before The Big Huge FOMC Meeting to End All Meetings (maybe) where tapering QE may finally be discussed seriously, global markets have been mixed suggesting indecision on what may come out of the meeting. Most of last week, the bears had the upper hand, heading for the door on concerns that a decision to start tapering is imminent which would bring the beginning of the end for the liquidity party. On Friday and into today US markets have been rebounding in what first appeared to be short covering, but may also be bargain hunting with not all traders convinced the Fed may act this time. US Markit flash manufacturing PMI and Empire manufacturing came in below expectations, suggesting some parts of the economy regions may not be as strong as thought. Similarly, US has been giving back some of last week’s gains which has enabled energy commodities and copper to rally. The big rally in Brent crude has given NOK a boost to the top of the league on what has otherwise been a realtively quiet day for FX majors. Gold, is trading lower despite USD weakness but could react more strongly to this week’s inflation reports. European indices, meanwhile, have been climbing today boosted by better than expected flash PMI data out of Germany and Ireland’s successful exit from its bailout program over the weekend. Asia Pacific markets, on the other hand started out the week with another selloff. Uncertainty about what the Fed may or may not do and when could keep markets choppy for the next few days. The big announcement comes Wednesday at 2:00 pm EST. Economic News Significant economic announcements released yesterday afternoon and overnight include: US flash manufacturing PMI 54.4 vs street 55.0 US Empire manufacturing 0.98 vs street 5.00 and previous (2.21) Germany flash mfg PMI 54.2 vs street 53.0 Germany flash service PMI 54.0 vs street 55.3 France flash mfg PMI 47.1 vs street 49.0 France flash service PMI 47.4 vs street 48.7 Eurozone flash mfg PMI 52.7 vs street 51.9 Eurozone flash service PMI 51.0 vs street 51.5 China flash manufacturing PMI 50.5 vs street 50.9 and previous 50.8 Japan Tankan Lg mfg index 16 vs street 15 and previous 12 Japan Tankan Lg mfg outlook 14 vs street 17 and previous 11 Economic reports due later today include: 8:58 am EST US flash manufacturing PMI street 55.0 9:15 am EST US industrial production street 0.6%


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