Global equities gave back most of their earlier week gains over the last 24 hours as shown in the EMI Global Equity Index table below. The Index is now up by only 0.1% for the week with the year to date gain at 2%. The markets are simply in a wait and see mode insofar as the outcome of the today's FOMC meeting as well as tomorrow's ECB meeting. For today the market is looking for any signs of a new round of quantitative easing as discussed above while market participants are anxiously awaiting more clarity on what Mr. Draghi meant by "everything" when referring to the ECB support of the euro. For today equities are not a leading price driver rather they will be reactionary based on the central bank outcomes.
The oil complex is back into positive territory in overnight trading after a bullish API oil inventory report (see below for more details) but tempered by yet another bearish data point out of the main oil demand growth engine of the world...China. The National Bureau of Statistics and the China Federation of Logistics and Purchasing reported the July PMI index dropped to 50.1 or the lowest level in eight months. The PMI came in below expectations and is barely above the expansion threshold level. This is not only a bearish number for the Chinese economy but since it is an energy sensitive indicator and especially negative for oil demand growth.