NEW YORK ( TheStreet) -- Economic data across the world continues to show weakness. Purchasing Managers Index readings in both Europe and China raised concerns over the future health of global economies, but central banks have been on guard.The European Central Bank cut rates recently, and President Mario Draghi vowed to keep a close watch on the data. European PMI's have been below 50 for a number of months now, indicating that contraction is taking place.
Earnings season has taken way in Japan, and many analysts have deemed it disappointing. Of the companies that reported, only 54% beat expectations. That is compared to a rate of 68.5% in the U.S. "Abenomics," is the term coined for Japan's aggressive monetary and fiscal policy, made popular by Shinzō Abe, the current Prime Minister of Japan. The policy diminished the value of the yen by 24% and incited a 62% rise in the Nikkei index. Although the yen reached a psychological resistance against the dollar, proving unable to push past the 100 dollar/yen mark, the long term trend remains bearish yen.