Stock markets around the world have been steady overnight as markets prepare for the return of US traders. NASDAQ futures, which had been underperforming overnight, have rebounded in the last few minutes.
Big tech remains an area of potential vulnerability, with earnings expectations running high after the sector left everything else in its dust over the last few months.
The US dollar is up slightly against gold and major currencies. Later today, minutes from the last FOMC meeting are due. Traders may be looking for more hints regarding the Federal Reserve's future plans. Press reports on Tuesday suggested the Fed could announce the start of its balance sheet reduction plan in September and hold off on raising rates until December. I tend to agree with regard to rates but think a government shutdown could push the balance sheet decision to October or later.
Crude oil is down 1.5% today after Russia indicated it opposes deeper production cuts on the grounds that it could cause prices to overshoot to the upside and cede more market share to US shale producers. CAD has not been impacted by this yet, indicating that the loonie remains more sensitive to speculation on a potential Bank of Canada rate hike, possibly as soon as next week.
Significant announcements released overnight include:
Eurozone retail sales 2.6% vs street 2.3%
Service/non-manufacturing PMI reports:
UK 53.4 vs street 53.5
Germany 54.0 vs street 53.7
France 56 9 vs street 55.3
Italy 53.6 vs street 54.6
Spain 58.3 vs street 56.5
Australia 54.8 vs previous 51.5
Singapore 50.7 vs previous 51.4
Japan 53.3 vs previous 53.0
China Caixin 51.6 vs previous 52.8
Upcoming significant economic announcements include:
10am (EDT) US factory orders street (0.5%)
2pm (EDT) FOMC minutes
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