Things that can move us:
- Asia mostly up: Japan, China flat, HK +.35%, SoKo +1.54%, Aust +.35%
- China industrial production +9.5% YoY vs 9.8% expected, 9.6% previous
- China GDP 7.6% vs 7.7% expected, 8.1% previous
- China electricity generation unchanged from previous year, first since 2009
- China home sales rise 41% on month following interest rate cut
- Europe up: Eurostoxx +.35%, Dax + .80%, FTSE +.66%; Spain, It flat
- Spain CPI +1.9% YoY, core +1.3%, both as expected
- Italy CPI +3.6% YoY, also as expected
- Moodys downgrades Italy bonds to Baa2 from A3; Italy bond yields + 0.1%
Financial analysts got the overnight move right, attributing it to the spectre of Chinese stimulus following a rather poor showing in terms of economic data. Chinese industrial production and GDP were both lower than expected, not by much, but when expectations are not met, markets typically go down--unless investors are cheering the prospect of more goodies from the government's war chest. German stocks are particularly excited as is their wont these days, now up nearly 2% on the week despite a clear lack of good news. Even the downgrade of Italy by two notches has done nothing to dampen enthusiasm. China often acts over the weekend, so it's not likely we'll see a reversal to the downside today.