The one day up, one day down action in stocks we saw last week has continued into the start of this week’s trading. Indices around the world have started the week on the back foot. Concerns about what might come from the growing protests in Hong Kong dragged on Asia Pacific trading and cast a cloud over other regions, while helping to shore up support for gold. European markets also appear to be responding to speculation surrounding this Thursday’s ECB meeting. The central bank is expected to outline its plans for asset purchases (QE by another name), and with the recent LTRO loans seeing less interest than the street had hoped, the ECB has its work cut out for it to get to its trillion Euro balance sheet increase target. Lower stocks and a rebound in EUR to start the week suggest some traders are concerned the ECB may not act decisively enough. US indices are slumping back along with their peers overseas and appear to be resuming the seasonal correction that started in earnest last week. This week’s PMI and payroll reports could spark significant action as traders keep trying to figure out if the Fed will move up its timetable for interest rate increases and what that could mean for markets. It also remains to be seen how much the big rally in USD over the last several weeks may drag on the earnings of multinationals. Currency trading saw US spike up again overnight but more recently it has slipped in normal backing and filling. The biggest action in forex markets to start the week has been in NZD after the RBNZ revealed that it has already intervened in the marketplace selling $521 million in August. While some may speculate that the central bank may keep intervening this plunge may also be a washout and we could see a short-term bounce at some point to ease oversold conditions. Among the other resource dollars. AUD has dropped in sympathy on concerns that RBA may also decide to intervene while CAD is ignoring this completely as the Bank of Canada recently confirmed its commitment to a free floating currency and a no intervention policy. Corporate News Natural gas producer EnCana has agreed to purchase Texas based oil producer Athlon Energy for $5.9 billion in cash. Economic News Economic reports released overnight and this morning include: US personal income 0.3% as expected US personal spending 0.5% vs street 0.4% US PCE core inflation 1.5% vs street 1.4% Germany consumer prices 0.8% as expected Spain retail sales 0.4% vs street (0.8%) Sweden retail sales 4.6% vs street 3.5% UK mortgage approvals 64.2K vs street 65.0K Economic reports due later today include: 10:00 am EDT US pending home sales street (1.4%) 10:30 am EDT US Dallas Fed street 10.5 vs previous 7.1