ASIA: Japan crashed while China soared. The yen has continued to strengthen and is near 83.3 per U.S. dollar right now. Japanese industrial output also fell 0.3% in August.
China has announced tougher rules for the property market including higher down payments required to buy a home and a new trial property tax in select cities.
Thing is, these new measures appear far less harsh than investors had feared, given the sharp rally today in China. Strength was led by real estate stocks on the mainland with… get this… Vanke up 7.5% and Poly Real Estate up 8.9%. These new regulations are clearly being laughed at.
EUROPE: Falling slightly. Spain’s credit rating has been cut one level by Moody’s, to Aa1, which seems to have been the consensus expectation but was better than some forecasts of a two-notch downgrade. Still, Spain has lost its top credit rating.
German unemployment fell by twice the rate economists were expecting, hitting the lowest level since 1992.
MACRO: Oil has broken above $80. The euro is above $1.36.
U.S. FUTURES: Are slipping. Watch for U.S. GDP and jobless claims at 8:30 AM ET.