Things that can move the U.S. today:
Meanwhile in Europe markets are mounting a modest rally despite price pressures as shown from France and Italy, both rather surprising given the recessionary conditions. The combination of rising crude, wages, and weak euro seems to be too much to bear without some price adjustments. For now this is probably neither here nor there, but there is not much wiggle room because we're already well above the "just below 2%" target of the ECB. Draghi could care less, but the Bundesbank will not be happy.
- Asia mixed: Japan -1.1%, Shanghai +1.45%, HK +.38%, SoKo +.38%
- Japan industrial production -4.3% YoY vs -3.4% expected, -0.8% prev
- Japan housing starts -5.5% YoY vs -7.5% expected, -9.6% previous
- Europe steady: Eurostoxx +.38%, Dax +.49%, FTSE +.39%, Spain +.6%
- EC CDS very slightly improved at the end of a volatile week
- France GDP +0.3% YoY as expected, unchanged on quarter
- Germany retail sales -.8% vs -.9% expected; prev revised down to -1.6%
- France producer prices +2.6% YoY vs 2.0% expected, 1.3% previous
- Italy CPI (EU harmonized) +3.4% YoY vs 2.7% expected, 3.3% previous
Meanwhile in Europe markets are mounting a modest rally despite price pressures as shown from France and Italy, both rather surprising given the recessionary conditions. The combination of rising crude, wages, and weak euro seems to be too much to bear without some price adjustments. For now this is probably neither here nor there, but there is not much wiggle room because we're already well above the "just below 2%" target of the ECB. Draghi could care less, but the Bundesbank will not be happy.