Fed Wait - Is Crucial

It was more a case of range trading, but the closes in New York were again a little higher.

The headlines were able to claim an 11th day of gains, though actual new price highs have not been seen for several days now.

The pattern of the year has been for the market to rally into every Fed rate hike? The opposite of old world trading patterns, but there you have it, the new world of just too much money to invest forever driving expectations higher.

Economic data around the world continued to darken significantly, including the US scene, but nothing it would seem can stop the buying.

Eurozone Services Sector growth slowed to a 6 month low. UK Private Sector Growth eased to a 6 month low and continues to roll-over. The US Chicago Fed National Activity Index fell further into contraction territory. The US SP500 Global PMI Index also continued to display that worrying rollover.

Nothing though, could stop the sentimental hopes of the last great Fed hike. It may well be the case that despite my expected rather hawkish overall commentary by the Fed, markets will just interpret whatever is said however they wish. When the Fed was telegraphing clearly, early on in the cycle, that rates were going much higher for longer than the market assessed, the market commentaries of the time simply dismissed that clear projection. We may see the same spin process again this week?

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