ASIA: Japanese shares lead a sharp Asia rebound. Japanese shares surged over 2%, though the yen hasn’t weakened further as its at just above 83 per U.S. dollar. Chinese shares rebounded after days of losses as the State Council is drafting measures to fight food price inflation. However, the IMF is warning that asset inflation caused by hot money inflows could push Hong Kong into a protracted and ‘painful’ economic downturn.
Singapore’s government has forecast its economy to expand a robust 4-6% next year, and economic growth this year end up the fastest in the world.
EUROPE: Rising. Ireland’s central bank head expects a loan running in the ’10s of billions’ of euros from the EU and IMF. The Irish 10-year bond yield is falling, now just show of breaking below 8%. Still, German central banker Axel Weber is warning that ECB independence is being eroded as it is being pushed to increasingly support Ireland’s financial system.
MACRO: The euro has found some footing, the dollar is slipping. As markets rise globally, the dollar is weak and gold is rising as the yellow metal once again shows how its become an indicator of risk-taking rather than a safe haven bought on down days, as the dollar has been.
U.S. FUTURES: Rising. Watch for jobless claims at 8:30 AM ET, with leading economic indicators and the Philly Fed Survey at 10:00 AM.