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US and UK traders return to work in time for a flurry of economic news

European markets are trading slightly lower with the Dax and CAC down 0.2%-0.3%. In an ongoing sign of who is winning and who is losing from being in the Euro, Germany’s employment figures were better than expected while Italy’s were worse than expected.

UK markets are down only slightly today as traders return from holiday across the pond as well. Weekend reports suggest indications that PM Cameron’s tenure as Conservative leader could come under fire regardless of which side wins the upcoming Brexit referendum. Meanwhile, an ORB poll released this morning shows Leave gaining momentum as their results shows Remain’s lead narrowing to 51%-46% from 55%-42% last week. There was a brief downdraft in GBP but that ended quickly with Sterling already bouncing back. This action shows that fewer and fewer traders are concerned about negative implications of a Leave win, tuning out the overblown calls of doom from some quarters.    

Brent and WTI crude oil are holding steady just below $50.00 per barrel ahead of Thursday’s OPEC meeting with CAD, NOK and RUB also steady. Gold has bounced back slightly off of $1,200 support. Canadian banks could attract more attention today as Bank of Nova Scotia reported results which were not as bad as feared despite restructuring charges.

Corporate News

Bank of Nova Scotia        $1.46 vs street $1.42

Economic News

Significant announcements released overnight include:

Japan unemployment rate        3.2% as expected
Japan industrial production        (3.5%) vs street (5.0%)
Japan housing starts            9.0% vs street 4.1%
Japan construction orders        (16.9%) vs previous 19.8%
Japan household spending        (0.4%) vs street (1.3%) and previous (5.3%)

Eurozone unemployment rate        10.2% as expected
Eurozone consumer prices        (0.1%) as expected
Eurozone core CPI            0.8% as expected

Germany unemployment change    (11K) vs street (5K)
Germany unemployment rate        6.1% vs street 6.2%
Germany retail sales            2.3% vs street 1.7%

France consumer prices            (0.1%) as expected
Greece retail sales            (4.3%) vs previous (7.3%)
Italy unemployment rate            11.7% vs street 11.4%

Australia building approvals        0.7% vs street (6.7%)
NZ building permits            6.6% vs previous (9.8%)
NZ ANZ business confidence        11.3 vs previous 6.2
NZ ANZ activity outlook            30.4 vs previous 32.1

Announcements due later today include:

8:30 am EDT        Canada Mar GDP            street 1.4% vs previous 1.5%
8:30 am EDT        Canada Q1 GDP            street 2.8% vs previous 0.8%

8:30 am EDT        US personal income            street 0.4%
8:30 am EDT        US personal spending            street 0.7%
8:30 am EDT        US core PCE inflation            street 1.6%

9:45 am EDT        US Chicago PMI            street 50,5
10:00 am EDT        US consumer confidence        street 96.3
10:30 am EDT        US Dallas Fed                street (8.0) vs previous (13.9)

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