The S&P has slipped in the the red, shedding a 13 point early rally after the ISM figures. The drop in equities has been accompanied by a dip in commodities. The CRB is up only 0.3% compared to gains of better than 1% earlier in the day after Chinese PMI figures.
EUR/US trades in quiet ranges amid talk of central bank demand for reserve diversification in the 1.3850/60 area. Stale longs are looking to sell on rallies to 1.3910/20, traders say. We trade now at 1.3877.
S&P reports that JP Morgan has been implicated in a sub-prime scandal along the lines of the one Goldman Sachs became embroiled in earlier this year.