Stock markets around the world have been declining overnight mainly on concerns about economic turmoil in Europe. US index futures are trading down 0.5%. Across the Atlantic, falling Sterling continues to reflect economic and political uncertainty but it also keeps supporting the FTSE which is flat today and outperforming its peers. UK Service PMI was below expectations showing weakness along with but yesterday's construction PMI showed weakness. Bank of England Governor Carney made his first easing move since the Brexit Referendum today cutting the countercyclical buffer for banks to 0% from 0.5% in a bid to unlock £150B in lending capacity after investment slowed. Today features the first round of voting in the Conservative leadership contest. Italy's ongoing banking crisis ‎and other uncertainties have more than offset positive service PMI reports from across the continent sending the Dax down 1.4% and the CAC down 1.2%. Interestingly Italy's FTSEMIB is only down 0.4% suggesting that market may be getting close to washed out. Capital flowing into defensive havens like bonds have sent treasury yields lower and the Yen higher sending the Nikkei down 0.7%. In China, however, ‎better than expected Caixin service PMI sent Shanghai to a 0.6% gain. Commodities are trading lower today with WTI crude oil down 2.2% and wheat down 3.4%. In metals, silver is down 2.6% while gold is steady. Falling resource prices along with global market malaise could cut into yesterday's Canadian market gains. US news picks up again today with factory orders and NY Fed President Dudley (one of the Big 3 at the Fed) speaking. Tomorrow brings a number of significant announcements for North America led by FOMC minutes this afternoon where any comments related to the July meeting or Brexit could attract particular attention. ‎US and Canada trade figures plus US service PMI reports may also spark trading action. Corporate News There have been no major corporate announcements so far today. Economic News Australia RBA interest rate 1.75% no change as expected Eurozone retail sales 1.6% vs street 1.7% Sweden industrial production 1.7% vs previous 3.5% Service PMI reports: China Caixin 52.7 vs previous 51.2 Japan Nikkei 49.4 vs previous 50.4 India Nikkei 50.3 vs previous 51.0 Germany 53.7 vs street 53.2 France 49.9 as expected Italy 51.9 vs street 50.4 Spain 56.0 vs street 55.0 Upcoming significant economic announcements include: 10:00 am EDT US factory orders street (0.8%) vs previous 1.9% 10:00 am EDT US factory orders ex transport street (0.3%) 2:30 pm EDT FOMC Dudley speaking