Yesterday (Tuesday) was an unusual economic data day. US durable goods were messy and I note the year-on-year change was just 0.1%. Watching the absolute size of the new orders book also worthwhile too.
Official consumer confidence data was strong but I noted this short-term Gallup survey. Did the worst week on the S&P in the last 18 months really have this impact? What would happen in a real pullback?
European consumer confidence data was generally written up by the financial press as positive. Sequentially, in France and Italy, this may have been so, but I am focused on the bigger picture. Look at the structurally low levels of consumer confidence in France on a 40 year view.
And this different world in Europe is reflected in the current low inflation and lack of impact of the - to date - base money expansion (aka QE) by the ECB. This great chart from the ECB themselves nicely captures the current challenge.