- Busch: US Health Care Bill a Concern for the Chinese
- Farrell: The Market is Still Seeking Reassurance
- Schork Oil Outlook: Still Bearish Crude, But Skeptical
- Taking a Page from Obama's Asia Agenda in Investing
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- Downturn is Prime Time for Airport Infrastructure Projects
- Busch: Pressure Builds and Expands For Chinese Trade War
- Tamminen: Carbon Insurance For Your Car May Be Down The Road
- Busch: Another Obama Opportunity
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- U.S. May Wind Up Green With Envy
- Time Warner to Spin Off AOL on December 9
- US Top Banks Warn Congress on 'Break-Up' Risks
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Paulson Betting Unemployment Not Getting Much Worse?
- Stocks May Rise Further after Fed Waves on 'Risk Trade'
- Millions May Have to Repay Part of Obama Tax Credit
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
- Obama Nudges Hu on Yuan; to Ease Trade Tensions
- Fed's Kohn Sees No Asset Bubbles Building in US
- Stocks May Rise Further after Fed Waves on 'Risk Trade'
- Buffett's Berkshire Hathaway Boosts Stake in Wal-Mart
- Microsoft Co-founder Allen Diagnosed with Cancer
- Time Warner to Spin Off AOL on December 9
- Gates Boosts Waste Management, Coca Cola Stakes
- US Cities With Most Underwater Mortgages
- What's Kept Stock Rally Going? Fear, Not Confidence
RSS FEED
CNBC Guest Blog
New data reinforce the idea that economic growth is slowing in Europe. Today's data have bolstered the value of the dollar, which has gained about 0.8% against the Euro, and the rally has contributed to a big drop in gold.
Purchasing manager surveys were released in France, Germany, and for the Euro-wide area. In France, its purchasing manager index for manufacturing activity fell to 49.2 in June from 51.5 in May, 1.8 points lower than expected. Germany's manufacturing index was nine-tenths of a point below expectations, at 52.3. For the Euro-area, the manufacturing index fell to 49.1 from 50.6, which was 1.1 points below the consensus forecast. It is the first dip below 50.0.
There is also chatter in the markets about the possibility of foreign exchange intervention, although this sort of thing can't be hidden. In other words, if it were happening it would be known to all in the market very quickly. The U.S. has not intervened in the foreign exchange market in about eight years. I have recently advocated such, as a way of giving new sails to the dollar, which in combination with increased oil output could have acted as a catalyst to a drop in commodity prices.
The G-8 missed a chance to act boldly last weekend, although it will get another chance July 7-9 in Hokkaido, Japan when the G-7 meeting will include both finance ministers and central bankers.
More: Click for Latest Economic coverage ...
__________
Tony Crescenzi is the Chief Bond Market Strategist at Miller Tabak + Co., LLC where he advises many of the nation's top institutional investors on issues related to the bond market, the economy and other macro-related issues. Crescenzi makes regular appearances on financial television stations such as CNBC and Bloomberg, and is frequently quoted across the news media. He is also the co-author of the just-revised "The Money Market" and "The Strategic Bond Investor."








