Saturday, May 25, 2013

Global Sell-Off Points To QE Addiction, Basic Weakness

The global stock sell-off that followed hints the Federal Reserve may trim its stimulus soon underscored how much the prior rally wasn't based on economic fundamentals, which, data Thursday showed, remain shaky.
Markit's manufacturing gauge for China swung back to contraction in May after six months of tepid expansion. Eurozone private-sector activity shrank at a slower pace but indicated the recession will continue into Q2. U.S. factories grew more slowly as exports fell.

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