Stock markets around the world are trading higher to kick off September on a positive note, particularly in Europe. The Dax is up 0.5% while the CAC is up 1.0%, the IBEX up 1.6% and the FTSEMIB up 1.4%. US index futures are up 0.25% while the FTSE is down marginally held back by a big figure rally in GBP.

Positive sentiment to start what has historically been a volatile month for stocks has been driven by a number of positive manufacturing reports. A number of countries either beat the street or improved over last month. Both the UK and China climbed back above 50 boosting the Hang Seng and igniting a rally in GBP. Japan, India and Spain also posted positive numbers while Sweden and Norway missed significantly. Australian PMI fell off a cliff made worse by poor retail sales and capex results for the country. UK PMI showing that the feared Brexit recession was a pipe dream combined with Greece regaining 50 appears to be helping stocks on the continent rebound where indices had been underperforming for much of the year giving them lots of room for catch up. 

Moving to North America today, US and Canadian manufacturing PMI reports plus US construction data may attract attention from traders. In the US, data may be seen through the lens of Fed speculation with traders considering whether an event makes a September rate hike more or less likely. 

CAD could be active on the Canadian PMI report with traders interested‎ in whether the rebound from the Fort McMurray wildfire that GDP figures showed starting in June has continued into the summer.


Corporate News

Dollarama        $0.88 vs street $0.84, same store sales 5.7% as expected


Economic News


Japan Q2 capital spending    3.1% vs street 5.5% vs previous 4.2%

Australia Q2 private capex    (5.4%) vs street (4.0%) vs previous (5.2%)
Australia retail sales        0.0% vs street 0.3%
Australia commodity index    0.8% vs previous (2.0%)

Norway retail sales        (0.6%) vs street 0.3%


Manufacturing PMI reports:


China official        50.4 vs street 49.8 vs previous 49.9
China official non-man    53.5 vs previous 53.9
China Caixin        50.0 vs street 50.1

UK             53.3 vs street 49.0 vs previous 48.2
Germany        53.6 as expected
France            48.3 vs street 48.5
Spain            51.0 vs street 50.9
Italy            49.8 vs street 51.2

Sweden        50.7 street 54.0
Norway            50.8 vs street 54.7
Poland            51.5 vs street 50.6
Greece            50.4 vs previous 48.7

Japan Nikkei        49.5 vs previous 49.6
Australia        46.9 vs previous 56.4
India Nikkei        52.6 vs previous 51.8


Upcoming significant economic announcements include:


8:30 am EDT        US jobless claims        street 265K

10:00 am EDT        US construction spending    street 0.5% vs previous (0.6%)
10:30 am EDT        US natural gas            street 41 BCF

Upcoming Manufacturing PMI reports:

9:30 am EDT        Canada            previous 51.9
9:45 am EDT        US Markit        street 52.1
10:00 am EDT        US ISM            street 52.0 vs previous 52.6
10:00 am EDT        US ISM new orders     previous 56.9


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