US traders largely unwilling to commit ahead of holiday break

Economic Data

- (PT) Portugal July Industrial Production M/M: +0.8% v -0.4% prior; Y/Y: 3.5% v 0.0% prior
- (PT) Portugal July Retail Sales M/M: +2.5% v -1.8% prior; Y/Y: +1.0% v -0.5% prior
- (MY) Malaysia July M3 Money Supply Y/Y: 5.7% v 5.6% prior
- (IT) Italy Q2 Final GDP Q/Q: -0.2% v -0.2%e; Y/Y: -0.2% v -0.3%e
- (EU) ECB: 17 Banks to repay total €3.5B in 3-Year LTRO Funds vs. €4.0Be
- (IN) India July Fiscal Deficit INR Crore: 2.7B v 5.7B prior
- (IN) India Forex Reserves w/e Aug 22nd: $318.6B v $319.4B prior
- (IN) India Q2 GDP Y/Y: 5.7% v 5.5%e
- (BR) Brazil Q2 GDP Q/Q: -0.6% v -0.4%e; Y/Y: -0.9% v -0.6%e; GDP 4-quarter Accumulated: 1.4% v 1.5%e
- (PL) Poland Central Bank (NBP) Aug Inflation Expectations: 0.2% v 0.1%e
- (ZA) South Africa July Trade Balance (ZAR): -6.9B v -4.0Be
- (ZA) South Africa July Budget Balance (ZAR): -69.7B v -62.0Be
- (US) July Personal Income: 0.2% v 0.3%e; Personal Spending: -0.1% v +0.2%e
- (US) July PCE Deflator M/M: 0.1% v 0.1%e; Y/Y: 1.6% v 1.6%e
- (US) July PCE Core M/M: 0.1% v 0.1%e; Y/Y: 1.5% v 1.5%e
- (CA) Canada GDP M/M: 0.3% v 0.2%e; Y/Y: 3.1% v 3.0%e; Q2 Quarterly GDP Annualized: 3.1% v 2.7%e
- (CA) Canada July Industrial Product Price M/M:-0.3 % v -0.2%e; Raw Materials Price Index M/M: -1.4% v -1.8%e
- (BR) Brazil July Central Govt Budget Balance (BRL): -2.2Bv 0.0Be
- (ES) Spain July YTD Budget Balance: -€32.1B v -€26.2B prior
- (US) Aug ISM Milwaukee: 59.63 v 60.00e
- (CL) Chile July Manufacturing Index Y/Y: -4.1% v -3.5%e
- (CL) Chile July Unemployment Rate: 6.5% v 6.6%e
- (CL) Chile July Total Copper Production: 465.7K v 488.1K tons prior
- (CL) Chile July Retail Sales Y/Y: 1.5% v 0.9%e
- (BR) Brazil July Nominal Budget Balance (BRL): B v -22.0Be; Primary Budget Balance (BRL): B v +0.6Be; Net Debt % GDP: 35.0%e
- (US) Aug Chicago Purchasing Manager: 64.3 v 56.5e
- (US) Aug Final University of Michigan Confidence: 82.5 v 80.0e
- (MX) Mexico July Net Outstanding Loans (MXN): 2.58T v 2.574T prior

- US traders are largely looking past another round of solid economic data and appear to be willing to lighten up positions ahead of the long Labor day weekend. Geopolitical developments continue to weigh on peoples' minds. Ukraine remains a sore spot as it appears we are headed toward another round of sanctions. European leaders are meeting at summit tomorrow and NATO convenes next week. Add to that the UK raised their terrorist threat level on concerns British citizens fighting alongside ISIS in Iraq and Syria could return home intent on wreaking havoc. Indices are flat to down modestly and Treasury yields are little changed. The benchmark 10-year remains only a few basis points from the lows of the year.

- Several small and mid-cap tech names reacted particularly well to tail end earnings season reports. Avago shares rallied 8% on improved margins. Splunk and Veeva Systems surged 8% and 16% respectively after beating consensus estimates and raising their outlooks.

- Criteo share gapped higher on rumors that Publicis is an interested suitor.

Looking Ahead

All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)

- (EU) EU Foreign Minister meeting
- 12:00 (CO) Colombia July National Unemployment Rate: No est v 9.2% prior; Urban Unemployment Rate: 10.2%e v 10.7% prior
- 15:00(US) Treasury outright schedule to be published
- 15:00 (AR) Argentina July Industrial Production M/M: No est v 2.1% prior; Y/Y: -2.5%e v -0.3% prior
- (CO) Colombia Central Bank Interest Rate Decision: Expected to raise Overnight Lending Rate by 25bps to 4.50%

Weekend
- (EU) EU Leaders hold Summit on High-Level Appointments (President and Foreign policy posts)
- (DE) German State of Saxony holds Legislative Election