Follow through from yesterday’s North Korean missile test dominated early trading but once the initial flurry of bearish news faded stocks bounced back while defensive havens like gold and the Yen gave back early gains. It appears that once it became clear the response would be more talk and no action, the bulls went bargain hunting.
There remain so many other potential flashpoints for trading, however, particularly around disaster relief and budget negotiations in the US that we could see more big intraday reversals in the coming days, potentially creating opportunities for traders. It’s a bad time to be complacent
Crude oil sold off for a second straight day while gasoline continued to hand around $1.70/gallon as Hurricane Harvey continued to wreak havoc on the Gulf Coast. With the storm moving northeast, refineries in Louisiana may need to be shut down but at the same time, there was talk of refineries farther west potentially coming back on line soon. Still, the potential for a surplus of crude oil and a shortage of refined products remains high for the next few weeks. Late in the day there was a big drawdown in API inventories but levels are likely to remain distorted for a while. 
It’s a light day for Asia Pacific news and the main event Wednesday is US ADP payrolls. Although the hurricane impact and the risk of a government shutdown is likely to keep the Fed on hold, some traders may try to make a game of the numbers if they are a big enough surprise from the 185K the street is expecting. 
Corporate News
There have been no major announcements after the close today. 
Economic News
Significant announcements released overnight include:
US API crude oil inventories(5.7 mmbbls) 
US consumer confidence122.9 vs street 120.7
Canada industrial prices(1.5%) vs street (0.7%)
Canada raw material prices(0.6%) vs street (0.3%)
UK Nationwide house prices2.1% vs street 2.5%
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)  
9:50 am AESTJapan retail salesstreet 1.0%
11:30 am AESTAustralia building approvalsstreet (16.6%)
1:00 pm BSTGermany consumer pricesstreet 1.8%
8:15 am EDTUS ADP payrollsstreet 185K vs previous 178K
8:30 am EDTUS Q2 GDP updatestreet 2.7% vs previous 2.6%
9:15 am EDTFOMC Powell speaking
10:30 am EDTUS DOE crude oil inventoriesstreet (1.5 mmbbls) 
10:30 am EDTUS DOE gasoline inventoriesstreet (0.5 mmbbls) 
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