Asian markets flat this morning , weekend comments from China’s Hu Jintao at an Asia-Pacific Economic Cooperation forum said that China’s economy is facing downward pressure, whilst Japan this morning cut their second quarter growth estimate in half, underlying recession risks as the European debt crisi continues to hurt exports

In Europe, a German lawmaker in Merkel’s CDU party, has filed a complaint to the Federal Constitutional Court over the ECB’s plan for unlimited bond purchases. The courts are due to give a ruling on ESM on Wednesday. The UK released BDO business confidence data with a reading of 89.1, a 20 month low. European futures are looking flat in early trade and in FX the EURUSD briefly traded above 1.28 level, but sits at 1.2784 currently.

US futures are looking around 30bps lower, but trade muted as attention now turns to the FOMC meeting on Thursday at which JP Morgan, Goldman and UBS all expect some fresh easing from the Fed.

 

Philip Ball | Sales and Trading