Stocks fell on Tuesday after more concerns emerged regarding the global economy. Overnight, China’s Caixin manufacturing PMI remained in contraction territory for a 14th-straight month. The index fell to 49.4 in April which is below the boom/bust level of 50 and below March’s reading of 49.7. In other news, more easy money came from Australia’s Central Bank, (The Reserve Bank of Australia or RBA). The RBA unexpectedly cut the benchmark cash rate by 25 basis points to 1.75%. European banks were under pressure after UBS Group AG ($UBS) reported a 64% decline in Q1 earnings.
Gary’s Thoughts: Our thought from last week that a high was being put in for now…coming to fruition. Commodities the latest to put in near term top.