What Happened
- Flash PMIs eased, hinting at slower momentum in early Q1.
- Treasury yields slipped and the dollar softened on the data.
- Equities were mixed with defensives bid and cyclicals softer.
- Oil edged higher on supply-related headlines.
What It Means
- Cooling PMIs reduce immediate inflation pressure but raise growth questions.
- Lower yields give relief to duration-heavy sectors.
- Mixed sector performance shows uncertainty about the growth path.
What I Think
- I expect a choppy tape as earnings and data conflict.
- If PMIs keep sliding, defensives will lead.
- Energy remains a useful hedge given supply risks.
Market Terms
- PMI - Purchasing managers index, a gauge of business activity.
- Defensive bid - Investor preference for stable, low-beta sectors.
- Supply headline - News about production that can move commodities.