Ahead of the open, (24-07)

Today’s DJIA 200+, SP drop to ~1335 by the open was completely ‘out of the box’.  The circle of newsflow from China (comments that growth in China could slow further to 7.4% ) to Greece (IMF told the EU it will provide no additional funds for Greece = imminent insolvency?) to Spain (speculation of losing debt market access ) leading the decline seemed more like excuses than anything else for the Global market beatings. 

  

Simply, the magnitude of the US market drop didn’t correlate to the so-called news.  A steady reversal began shortly after, erasing half of the losses by close as policy (ECB) speculation took over.  As bad as the headlines may seem, ECB intervention chatter will eventually provide support as it did today.

  

Morning update: China Flash PMI better and best since Feb, European overall inline, but Germany worse which should fuel more ECB action chatter