Stock markets in continental Europe are getting hammered again today. Deutsche ‎Bank remains under fire with its shares falling under €10 before rebounding amid reports hedge funds have started to pull excess cash out of the Bank which faces up to $14 billion in US fines. The Dax is down 1.3% today with the FTSE down 1.1%. EUR has also been falling as sentiment toward the continent's banking system sours with EUR falling relative to USD, GBP and JPY.

US index futures have stabilized following thursday's selloff trading down 0.2% despite losing energy sector ‎support. WTI and Brent Crude are down 1.2% and 1.6% respectively as the bullish OPEC and inventory news subsides and traders take profits ahead of the weekend.

‎It's the last day of the quarter so we may see general repositioning of trades and portfolios today and traders positioning ahead of next week's PMI and payrolls reports.

There also is a lot of economic news for the markets to digest today. ‎Japanese data was mixed with deflation deepening but industrial production beating expectations. China manufacturing PMI was just above 50 and in line. UK GDP over quarter and house prices were slightly above expectations.

Canada GDP for July may attract significant attention from traders. The Bank of Canada had been hoping for a summer rebound in Canada from the spring wildfire disruptions. ‎In its last monetary policy statement the bank indicated July was not looking weaker than expected so today's data may indicate if pressure on Governor Poloz to cut interest rates this year is increasing.

In the US, Chicago PMI may attract some attention as a leading indicator for manufacturing PMI reports due over the weekend and into Monday. There are fewer Fed speakers today but this week's comments indicated that hawkishness at the Fed goes far beyond the three members who actually dissented at the last meeting. Traders may continue to look at incoming data in terms of how it may impact the prospects of a December rate increase but there's still the matter of the election campaign first. 

Corporate News

There have been no major corporate announcements this morning

Economic News

China Caixin manufacturing PMI        50.1 as expected

Japan unemployment rate        3.1% vs street 3.0%
Japan household spending         (4.6%) vs street (2.1%)
Japan consumer prices            (0.5%) as expected
Japan core CPI                0.2% as expected
Japan industrial production        4.6% vs street 3.4%
Japan housing starts            street 7.1%
Japan construction orders        previous (10.9%)

NZ ANZ activity outlook            42.4 vs previous 33.7
NZ ANZ business confidence        27.9 vs previous 15.5

UK Nationwide house prices        5.3% vs street 5.0%
UK GDP update                2.1% vs street 2.2%

Germany retail sales            3.7% vs street 1.8%
France consumer prices            0.4% as expected 
Norway unemployment rate        2.8% vs street 2.9%
Italy unemployment rate            11.4% as expected

Eurozone unemployment rate        10.1% vs street 10.0%
Eurozone consumer prices        0.4% as expected
Eurozone core CPI            0.8% vs street 0.9%


Upcoming significant economic announcements include:

8:30 am EDT        US personal income            street 0.2%
8:30 am EDT        US personal spending            street 0.1%
8:30 am EDT        US Core PCE inflation            street 1.7%

8:30 am EDT         Canada GDP                street 1.0%
8:30 am EDT        Canada industrial prices            street (0.1%)
8:30 am EDT        Canada raw material prices        street (1.0%) vs previous (2.7%)

9:45 am EDT        US Chicago PMI            street 52.0
10:00 am EDT        US consumer sentiment            street 90.0
1:00 pm EDT        US Baker Hughes drill rig count        previous 511

1:00 pm EDT        FOMC Kaplan speaking

9:00 pm EDT        China manufacturing PMI        street 50.4
9:00 pm EDT        China non-manufacturing PMI        previous 52.5


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