The new trading week has started with another big rally for the Hang Seng, which jumped 1.2% overnight. Other index moves have been more moderate with the FTSE up 0.4%, while the Dax and US index futures are up 0.1%. Dow futures have reached a new all-time high but is peers have not confirmed the breakout so far.
The US Dollar has bounced back a bit relative to other currencies. Gold is down 0.1% along with oil, but JPY is picking up. A lack of action in these markets suggests the street is taking another North Korean missile launch plus increasing turmoil in Venezuela in stride, but these situations could still escalate, especially if the US takes action against China.
It has been a busy day so far for economic news. China manufacturing and service PMI reports plus German retail sales were softer than expected. Eurozone core inflation was higher than expected adding to speculation the ECB could resume tapering at the end of this year.
Earning season takes a bit of a break today after a flood of reports last week. Apple reports late Tuesday afternoon. Today, US Chicago PMI is out mid-morning, preceded by Canadian producer prices.
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