ASIA: Whip-sawed by data, ending higher except for China. Today was a bit of a roller-coaster trading day. Early on we had better than expected Chinese PMI manufacturing and Australian GDP data. China’s PMI rose in July from the 2010 low hit in June. Australia’s GDP grew 3.3% year over year in the second quarter.
Problem is, fresh harsh words towards the property market, made by China’s banking regulator, renewed concerns for the Chinese property market and the effect a property slump would have on the Chinese economy. Yet in Hong Kong… a key land auction drew a price which was a third higher than expected, implying continued froth there.
Australian stocks had a monster day despite mainland China’s late-day fall. Hong Kong was just volatile. Japan’s Nikkei recovered despite the yen remaining near 84 per dollar. See more in the focus charts below.
EUROPE: Germany is falling, while England and France try to stay positive. Europe is rising. German retail sales declined for the second month in July, surprising analysts. The Greek 10-year yield is rising again.
European manufacturing slowed to the slowest rate of expansion in seven months, according to Markit, but at 55.1, Markit’s index was higher than the 55-level expected.What’s funny is that the euro is surging, leading me to wonder if we’ve hit the point of no expectations for the euro.
MACRO: Gold has surged over the last 24 hours. Now above $1,251. The dollar is slipping, and the BDI continues to remain stable.
U.S. FUTURES: Are rising moderately robustly. Watch for the ADP employment report at 8:15 AM ET, ISM Manufacturing at 10:00 AM, and EIA petroleum data at 10:00 AM.
ASIA: Despite weakness for Chinese developers, Vanke, one of China's largest property players, managed gains
ASIA: China's PMI came in not too hot and not too cold, just right for what the nation wants right now
Source: TD Securities
If there's one take-way, to me it's that today we've had an odd dichotomy between concern for Chinese property and bullishness towards the China-driven commodities space.