Asian markets are mixed this morning with light volumes, but the bias is possibly on the downside after minutes released by the Fed said that tapering asset purchases before the end of the year would be possible should the economy continue to improve. Manufacturing output data in China came out better that expecting showing signs of expansion.

In Europe, equity futures are lower by around 30bps in early trade, ahead of French, German and Eurozone PMI data. The German finance ministry has said that tax revenues rose by 1.9% in July and the data suggests a continued recovery in H2.

US markets closed near session lows after the FOMC minutes revealed the increased likelihood of tapering. The yearly Jackson Hole meeting begins today, although given what was said at the last Fed monthly meeting any significantly major comments appear unlikely. Futures are marginally lower ahead of initial jobless claims, house price and leading indicators data.

Philip Ball | Sales and Trading