Flash PMI reports from overseas overnight have sparked another round of hand wringing particularly surrounding China which came in well below expectations, sending Asia Pacific markets lower. An improved Japanese report was unable to offset the flood of selling pressure. European markets have also been trading lower but falling at a more moderate pace today. Flash PMI reports were mixed but rumours a snap election may be called in Turkey, building on from yesterday’s snap election call in Greece and with elections scheduled for Portugal and Spain this fall, and a growing refugee crises, political uncertainty appears to have superceeded economic uncertainty for the time being. In currency markets, USD continues to weaken as traders’ expectations continue to shift away from a September interest rate hike ahead of next week’s Jackson Hole conference. Continental currencies like EUR and SEK remain the main beneficiaries so far. Growing turmoil in Asia continues to impact trading in currency and commodity markets as well. WTI crude is down again today, holding back NOK and CAD. The loonie tried to rally on the back of a better than expected Canadian retail sales report and core inflation still well above 2% but was only able to get so far due to the oil headwind. On the other hand, we continue to see capital flowing into defensive havens like gold, CHF and JPY. US markets have been falling through the morning along with their overseas counterparts. Weakness heading into a summer weekend indicates the pendulum between fear and greed has clearly shifted to the cautious side. We could see a flurry of activity later in stocks and USD around the US flash PMI report. Corporate News There have been no major corporate announcements overnight Economic News Significant announcements released overnight include: Canada consumer prices 1.3% as expected Canada core CPI 2.4% as expected Canada retail sales 0.6% vs street 0.2% Canada retail ex auto 0.8% vs street 0.5% China flash manufacturing PMI 47.1 vs street 48.2 Japan flash manufacturing PMI 51.9 vs previous 51.2 France flash manufacturing PMI 48.6 vs street 49.7 France flash service PMI 51.8 vs street 52.0 Germany flash manufacturing PMI 53.2 vs street 51.6 Germany flash service PMI 53.6 vs street 53.7 Eurozone flash manufacturing PMI 52.4 vs street 52.2 Eurozone flash service PMI 54.3 vs street 54.0 Upcoming significant announcements include: 9:45 am EDT US flash manufacturing PMI street 53.8 1:00 pm EDT US Baker Hughes drill rig count previous 884