- Stocks were mixed in Asian trade. Shanghai and Australia both lost about two thirds of a percent, the Nikkei was down about a half percent, but the Hang Seng rose a fraction. Europe however is generally higher with the Dax up more than one percent and the Footsie holding a gain of about one third of a percent. US stock futures are fractionally higher as I write.
- President Obama went to the G20 meeting with the intention of pushing his counterparts to keep the stimulus coming, he met stiff resistance. Despite concerns of the leaders at the gathering that the global recovery is “uneven and fragile” they agreed that fiscal responsibility was the way to go. But at the end of the day they actually committed to very little. Morgan Stanley’s Asian chairman Stephen Roach says, “I am underwhelmed. By attempting to finesse the trade-off between America’s call for ongoing stimulus and Europe’s penchant for fiscal consolidation the G20 has come up with a multi-purpose recipe with no enforcement mechanism.” They said they would cut their collective deficits and pursue higher capital requirements for banks, but that they would only do this once the economic recoveries take hold and left that determination for another day.
- German states have been releasing the June reading of their Consumer Price Index this morning, some of the results include: Hesse 0.0% on a month to month basis and +0.5% year over year, Brandenburg +0.1% and +0.8%, North Rhine-Westphalia 09.0% and +0.7% and Bavaria +0.1% and +0.9%. The national reading on the CPI is due out later this morning, the EU harmonized version is expected to be +0.2% on the month and +1.0% year on year.
- Tropical storm Alex is in the Gulf of Mexico, it is expected to become a hurricane but it is not expected to travel near the troubled BP oil well area.
- The May reading of Personal Income and Spending is due out at 7:30am CDT. Income is expected to be +0.5% and the estimate for Spending is +0.1%. The forecast for the month on month reading of the PCE Core is +0.1% and the year on year result is expected to be +1.2%.
- There are a couple of regional Fed surveys due out today. The May reading of the Chicago Fed National Activity Index is set to be released at 7:30am CDT, it is expected to be +0.32, slightly higher than the month before. The Dallas Fed Manufacturing Activity Index for June will be out at 9:30am CDT, it is expected to be +3.2, up a fraction from May,.
Disclosure: no positions