# The better tone of recent days continued, albeit in another European holiday thinned session. In light trading the EuroStoxx600 rose 0.75% and the S&P500 rose0.51%, furthering the current 3 month highs.
# Comments from the FED’s Rosengren (released our time yesterday) were seen as keeping the ‘risk’ rally alive as he opined that the U.S. Federal Reserve should bring out the big guns and do another round of QE as large as previous efforts as well as cutting the interest rate paid on balances held with the FED.
# The NZD underperformed against the field, the move largely attributed to comments from PM Key suggesting “the high NZD provides scope for the RBNZ to cut rates”. Here’s the article http://www.businessweek.com/news/2012-08-07/key-warns-on-one-way-bets-on-kiwi-as-rbnz-has-rate-cut-scope
# Commodities jumped, led by oil, which rose on the speculation that central banks will boost efforts to lift growth. Crude was lifted further by increased tensions in the Middle East where a high ranking member of the Syrian government defected. Crude ended up 2.2% to be up 6.4% on the month to date.
# Whilst the thoughts of central bank action keep markets buoyed the news was not all good…
# U.S. consumer credit expanded at the slowest pace in eight months in June, according to a Federal Reserve report
# Italian Q2 GDP contracted sharply at -0.7% q/q but not quite as bad as the -0.8% expected
# UK manufacturing production fell 2.9% in June, the largest fall since November 2008, but again a little better than the expected 4.3% decline (the release suggests next week’s UK GDP could be a touch belter than expected).
# German factory orders slumped 1.7% in June, well below expectations for a 0.8% fall.
# BoE Inflation Report
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