This is a big week for markets in terms of economic data. Yesterday we had a data dump of mammoth proportions and the data wasn't very promising.
A glance, we saw Australian, Korean, Spanish, Italian, French, German, UK, and Brazilian Purchasing Managers Index (PMI) all print sub-50 (contractionary) numbers. US PMI fell to 52.5 and Chinese PMI fell to 50.2 (lowest in three years. In addition, Eurozone unemployment rose to a record 11.1%, Brazilian consumer default rates spiked higher, and the US Institute for Supply Management survey (ISM) came in at a contractionary 48.7 (another three year low).
OK, you get it. The data was bad yesterday, but markets still rallied? What can we learn from the market reaction?