The Wall Street Journal reports that "October data from around the world are showing surprising strength. Today it was the turn of the euro zone’s services sector PMI reports, which followed on the heels of the region’s manufacturing PMIs to show better-than-expected growth. Other data from the U.K. and New Zealand were also positive. Indonesia’s growth slowed in response to rate hikes and softer commodity exports, but even there the growth rate is one that the rest of the world can envy".
On balance, the October data have so far been encouraging and, in the grand scheme of things, should feed through to a more positive assessment of overall risks by the U.S. Federal Reserve. Provided the U.S. continues to add jobs at a reasonable clip, a strengthening in global demand should help build the case at the Fed to taper its bond-buying some time in the new year, if not at the December meeting".
