Hopes were high heading into today’s U.S. Retail Sales report, with analysts expecting that the primary measure of the consumers’ health would bounce back to 1.0% m/m after three consecutive declines of more than -0.5%.
There has been a strengthening of U.S. equities on the back of strength elsewhere and somewhat surprising softening of govvies in spite of the weak data. That was likely due to the "bad news is good news" quantitative easing-inspired bid in European and Asian equities, and demonstrates the return of equities-govvies counterpoint in the near term.
More attention is being paid to politics than to actual market events. The U.S. labor market continues to be of great concern since an "unemployed or underemployed consumer does not consume" except for essentials such as food and energy.