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Asia and Europe drop on concerns that Spain and Germany possibly counteract the ECB's plans to deal with debt crisis; U.S. stock futures advance.
International
Asia
- Asian stock indexes retreated today as investors became concerned that Europe will fail to contain its debt crisis and as investors awaited possible stimulus by the Fed.
- The Nikkei slipped 0.7 percent; KOSPI declined 0.24 percent; Shanghai Composite fell 0.67 percent; Hang Seng advanced 0.15 percent; S&P/ASX 200 eased 0.18 percent.
Europe
- European stock indexes slipped for a second consecutive day after actions in Spain and Germany could go against the ECB plan to ameliorate the debt crisis. Spain stated that it not dictate how the ECB would trim its budget deficit, and Germany is considering whether it desires to continue participating in the € 500 billion European Stability Mechanism. Look for activity in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
Domestic
- U.S. stock futures advanced as investors await Germany's ESM ruling tomorrow and news from the Fed, which might give clues on possible stimulus.
- Analysts estimate that the U.S. trade deficit grew to $44 billion in July from $42.9 billion in June. Exports probably decreased due to weakening demand from Europe, China and emerging economies, and imports probably increased due to a higher cost in crude oil.
Commodities
All commodities news is as of 7:00 a.m. ET.
Gold and Silver Advance
- Gold rose 0.29 percent, or $4.93, to $1731.18. Expect increases in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
- Silver gained 0.52 percent, or $0.18, to $33.54. Expect boosts in the iShares Silver Trust (NYSEArca: SLV).
WTI and Brent Oil Climbed
- The October contract for WTI crude oil ascended 0.06 percent, or $0.06, to $96.60 per barrel.
- The October contract for Brent crude oil rose 0.24 percent, or $0.27, to $115.08 per barrel.
- Look for escalation in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
Fund Flows
None as of yet today
ETF Launches
None as of yet today
ETF Filings
None as of yet today
Economic Calendar
Domestic
- NFIB Small Business Optimism Index - 7:30 a.m. ET
- ICSC-Goldman Store Sales - 7:45 a.m. ET
- International Trade - 8:30 a.m. ET
- Redbook - 8:55 a.m. ET
Americas
◦ Housing Starts - 8:15 a.m. ET
◦ Merchandise Trade - 8:30 a.m. ET
Europe
◦ Merchandise Trade - 4:30 a.m. ET
Asia/Pacific
◦ CGPI (PPI) - 7:50 p.m. ET
◦ Machine Orders - 7:50 p.m. ET
◦ Tertiary Index - 7:50 p.m. ET
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