It's amazing what a difference a year makes. Last August Chinese markets went into free fall sending global markets into six months of turmoil. This summer, mainland China markets have been helping to support a rally. Overnight Shenzen gained 3.0% and Shanghai rose 2.5%. 

China stocks were boosted by speculation that last week's soft China industrial production and retail sales could push the government into more fiscal stimulus and also that a big upgrade to Hong Kong-Shenzen trading links could be on the way. Recall last year improved links between Hong Kong and Shanghai sent stocks soaring then crashing. 

Stocks in other parts of the world continue to consolidate recent gains. Earlier today the Dax moved back into positive territory for the year, that lags the gains of 6% for the Dow, 10% for the FTSE and 13% for the S&P/TSX so far in 2016. For today, the Dax, FTSE and US index futures are all up 0.1% to 0.3%. 

WTI crude oil is up 0.4% as it approaches the midpoint of its $40-$50 trading range. Earlier today Russia’s energy minister indicated the country is willing to talk to Saudi Arabia and other countries about stabilizing the market but that balance may not be reached until sometime in 2017. CAD ‎is attracting support off this with USDCAD trading below $1.3000 and it may also help energy stocks.

Earnings season continues to wind down and economic data has been light so today's US Empire manufacturing report could attract attention from traders. As the week progresses focus may turn to the UK where a s series of key indicators may shed light on the initial impact on the UK economy from the Brexit vote. Heading into the data GBPUSD is sitting below $1.3000 but above its July low.


Corporate News

There have been no major corporate announcements so far today. 


Economic News

China industrial production    6.0% vs street 6.2%

 

Upcoming significant economic announcements include:

8:30 am EDT        US retail sales            street 0.4% vs previous 0.6%

 

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