ASIA: Hong Kong surged, leading Asia higher. Chinese August industrial production data released over the weekend was stronger than consensus had expected, with activity rising 13.9% year over year. Chinese August inflation report, which was pushed forward two days to the 11th of September, came in at 3.5%, meeting expectations. Some had feared that the early release had meant that a surprise was in store, but this turns out to have not been the case.
There is speculation that a potential new Japanese prime minister, Ichiro Ozawa, could intervene in the currency markets in a bid to weaken the yen and give Japanese exporters some breathing room. This could be one reason why the yen has weakened slightly, back to above 84 per U.S. dollar. But given past experience, don’t hold your breath that the yen won’t strengthen further even in the face of intervention threats.
EUROPE: Off to a good start already. New global banking regulations have been announced, but it appears as if regulators will give banks more time than was expected to comply and thus there won’t be a rush to raise more capital in order to be in compliance.
MACRO: The euro is has broken above $1.28, Gold has slipped below $1,250. The Baltic Dry remains firm, and oil is rising.
U.S. FUTURES: Are rising. Watch for the Treasury budget at 2:00 PM ET.