Is The Global Economy Slowing Down?

It sure does appear that way based on the charts below.  However, the "bipolar" or "schizophrenic" stock market has not taken notice yet especially after a 244 point increase in the DJIA today.  Attribute the recent stock market gains to stimulus and the big boys front running the Fed and central banks around the world copying the Federal Reserves QE programs in order to keep their economies alive.

Regardless of the apparent global slowdown the stock market still looks to be in good shape from a technical standpoint.  In my opinion the stock market is "defying gravity" due to a global ZIRP policy by central banks around the world which is designed to try and stimulate economies.  How long before the stock market rejects it's perceived bullishness remains to be seen.

There are some important dates upon us with ramifications on the global economy and markets that include:

• Today: European Central Bank (ECB) policy meeting. An expected interest rate cut and details about a potential ECB bond-buying program.  Sound familiar.  Can you QE European style.
• Tomorrow: U.S. employment report for August. The median forecast expects 125,000 new non-farm jobs created last month.
•  Sept. 12: German Constitutional Court expected to rule on constitutionality of the European Stability Mechanism (ESM).
• Sept. 12-13: U.S. FOMC Meeting. Ben Bernanke and the Fed meet to discuss monetary policy ... QE3?

FedEx just issued profit warnings with the following headline:

FedEx earnings will miss earlier estimates of $1.45 to $1.60 a share, a condition the company said Tuesday was due to a weakening global economy that was hurting revenue.

That headline is supported by these headlines:

Downturn in Eurozone manufacturing continues in August, as weak demand hits output and employment.

Manufacturing sector operating conditions worsened at the sharpest rate in 41 months.

Weak manufacturing growth trend continues in August.

Manufacturing PMI dips to 16-month low in August.

The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides "an assessment of the price of moving the major raw materials by sea.

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