There's also Chicago PMI released shortly after the market open that suggests Q2 GDP may not be a positive print which would mean the US would technically enter a recession, we do have several more important data points this week so we'll have to see the trend, but Ch-PMI is not a positive development toward Q2 GDP and the possibility of a US recession.
Chicago PMI for June missed at 62.5, biggest miss in 3 months. Inventories were up, Order Backlogs were down, New Orders were down, the only silver lining was an uptick in employment, which is good news that is actually bad news for equity bulls looking for F_E_D accommodative policy.
Over in Europe, the ECB released an update, household loan creation and loan creation to non-financial industries is falling horribly. Private loans fell 2% y.o.y vs -1.8% from April, loan creation is just barely above its all time record lows from late 2013. To contrast this and give you some perspective, loan creation was +11% around the market top in 2007. This in addition to nearly a trillion dollars in non-performing (bad loans) that are already sitting on European bank balance sheets. Loans to households fell $42.8 billion Euros which is the largest decline on record.
It seems the Bank of International Settlements words of scorn of Central Bank policy being a quick fix that leads nowhere were very timely with this morning's data points so far, but it's still a very heavy week of data for such a short week, Non Farm Payrolls Thursday will be a biggie.
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