The First Look: Your 10-Second Guide To What Happened Overnight

bull spain

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ASIA: Japan and Hong Kong lead Asia, as the yen weakened. The yen has continued to weaken and stands near 85.85 per U.S. dollar. Hong Kong had a great day, with power and metals producers driving the rally.Despite reassurances from a Chinese banking regulator that higher capital adequacy ratios weren’t about to be announced as media had speculated, mainland Chinese gains were subdued and trailed Asia. At the same time, China’s central bank also said on its website that it would continue a moderately easy monetary policy.

It could be that renewed yuan-dollar rhetoric out of the U.S. is adding unwelcome uncertainty to China’s outlook. Thing is, we have a feeling that the resurgence of the yuan issue is more of a political ploy from the Democrats ahead of elections rather than the beginning of a trade war.

Finally, Caixin has noted that Chinese property buyers are coming back to the market.

(If you cannot see the performance graphics below, click here.)

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EUROPE: Is surging in early trade with France in the lead. Spain executed what’s being perceived as a very successful debt auction. The nation sold 4 billion euros of bonds, and the 10-year yield was at 4.14% after the auction vs. 4.86% in June. France’s Carrefour is up 6%, and near a 2-year high, on news it will upgrade stores with new designs and a hiked outlook.

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MACRO: Gold has broken above $1,280. Gold bulls continue to enjoy the post-yen intervention rally. The euro is above $1.31.

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U.S. FUTURES: Are rising. Today watch for Consumer Prices at 8:30 AM ET and Consumer Sentiment at 9:55 AM. Note we had Oracle (ORCL) and Research In Motion (RIMM) earnings yesterday evening, and both stocks are up substantially in pre-market trading. Definitely watch tech today. See more in the focus charts below.

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ASIA: The yen continues to weaken

MACRO: The euro has continued to strengthen

MACRO: Gold breaks above $1,280

EUROPE: International retailing giant Carrefour soars

EUROPE: Spanish yields are well below June levels. But we note they have just jumped, despite early reports of a successful Spanish debt auction today

EUROPE: Spain's IBEX Index trails major European markets despite some good news on the debt front

US PRE-MARKET: Oracle surging

US PRE-MARKET: Research In Motion surging

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