Global equity market trading remains subdued with US indices flat this morning and the Dax ‎up 0.4%. A usually seasonally quieter period with many players on holiday and limited news combined with people waiting to see what Fed Chair Yellen has to say on Friday has many traders sitting on their hands at the moment. The FTSE is down 0.2% held back by the continuing recovery in GBP as Brexit fears fade.

Canadian banks are in the spotlight this morning. Banks rallied yesterday on a positive kickoff to earnings week and today's report from the Royal ‎Bank of Canada was even better. RBC reported record earnings of $1.72 per share up 7% over year and above the $1.70 street estimate. RBC raised its dividend by 2% a sign management remains encouraged about its future prospects.

Most importantly, RBC cut its credit loss provision by 31% from last quarter on reduced provisions to the oil and gas sector. Questions about oilpatch exposure has dragged on sentiment toward the banks and improved confidence in the oilpatch could provide a general boost to banks and energy companies.

Yesterday new home sales nearing levels last seen nine years ago provided more evidence of a robust US economy. Today traders may look to house prices and sales of existing homes for more in‎dications on the strength of consumer spending.

Corporate News

Royal Bank of Canada     $1.72 ex one-time gains vs street $1 70, 2% dividend increase, cuts provision for credit losses by 31% from last quarter to $318M. 

Economic News

US API crude oil inventories        4.46 mmbbls

NZ trade balance        street ($325M)
Japan leading index        previous 98.4

Germany Q2 GDP update    street 3.1% 
Norway unemployment rate    street 4.7%


Upcoming significant economic announcements include:

9:00 am EDT        US FHFA house prices        street 0.3%
9:00 am EDT        US existing home sales        street 5.51M

10:30 am EDT        US DOE crude oil inventories    street (0.85 mmbbls)
10:30 am EDT        US DOE gasoline inventories    street (1.7 mmbbls) 

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