ASIA: Japan was hammered as the yen surged. China outperformed despite property concerns. The Japanese yen is now comfortably stronger than 84 per U.S. dollar, at 83.62, despite the Japanese government’s continued veiled warnings of a currency market intervention, which are proving useless. The yen bounced around in the 83’s over the last 24 hours, at one point moving past 83.40 per dollar.
Mainland Chinese stocks outperformed the region by a wide margin, falling just slightly. However, mainland Chinese markets were spooked by media reports that the Shanghai and Beijing governments were investigating the vast amount of vacancies among owned properties. Property observers worry that further tightening vs. speculation could be ahead as a result.
EUROPE: Is down substantially in early trading. German export data for July missed expectations, dropping 1.5% vs. June vs. an expected result of flat growth. While exports remain up over 18% year over year, there’s a bit of a slow-down evident.
European markets continue to worry that EU banks may have more exposure to questionable sovereign debt than disclosed. Eurostat has said that they still haven’t seen Greece’s ‘real documents’ in regards to financial transactions the Greek government had used to hide the extent of its total debt. Ireland’s shaky financial situation is also back in the spotlight.
MACRO: Gold is above $1,260. The Baltic Dry Index continues to firm.
U.S. FUTURES: Are battling around break-even. Watch for consumer credit at 3:00 PM ET.