Eurozone

Morgan Stanley: "The Debt Ceiling Worries Us Most"

"Multiple failures in the US to pass healthcare legislation, despite single-party control, raise questions about a whole host of other issues, from the debt ceiling, to the budget, to taxes. The debt ceiling worries us most, given that action may need to be taken within as little as seven weeks..."

Bill Blain: "The US Is Now Looking Like A Deflated Drunken Uncle"

"With the US now looking like a deflated drunken uncle, the focus is firmly fixed on what Mario Draghi says on Thursday at the ECB meeting. Does he confirm Euro strength with a bullish assessment of Eurozone recovery, and hint at an early taper and normalisation… Or does he step back, go soft and mushy, and make some “kick that can down that strasse” comments?"

Sleepy Overnight Session Interrupted By Chinese Market Turmoil

While it was indeed a generally quiet session (with Japan markets closed), US equity futures continued their run into record territory (ES up 0.1% to 2,458.50), and Europe fractionally lower, the early Monday focus was on the previously discussed turmoil for Chinese markets where despite a solid set of Chinese data small caps tumbled, selling off into the close after further warnings of regulatory scrutiny and deleveraging,

Draghi Said To Address Jackson Hole Followed By ECB QE Tapering Announcement

ECB's Mario Draghi is scheduled to address the Fed's Jackson Hole conference in August, "in a speech that is expected to give a further sign of the ECB’s growing confidence in the eurozone economy and its reduced dependence on monetary stimulus" with the WSJ adding that just two weeks later the ECB will then announce the start of its QE taper.

Bond Selloff Returns As EM Fears Rise; Oil Slides; BOJ Does Not Intervene

U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent "show and awe" from OPEC.

The European Union Has A Currency Problem

Donald Trump, for all his rhetorical clumsiness and intellectual limitations, still sometimes makes a valid point. He does when he says that Germany is “very bad on trade.” However much Berlin claims innocence and good intentions, the fact remains that the euro heavily stacks the deck in favor of German exporters and against others, in Europe and further afield.

Global Stocks Rise Amid Strong Economic Data; Yen Drops To 2 Month Low As Oil Resumes Slide

In a quiet overnight session, S&P 500 futures are fractionally in the green (2,426, +0.2%) with European and Asian stocks as oil drops second day after an initial ramp higher amid speculation that LIbya and Nigeria may be asked to cap their production. Nasdaq 100 Index are again higher, following the biggest daily advance in more than a week, up 0.4% as of 6:20 a.m. in New York.

The Three Hidden Subplots Of The G20 Hamburg Summit

"The Group of Twenty, known as G20, is an unaccountable and powerful organization that is the closest thing on earth to a true world government... Financial risk, anti-globalism, immigration, and threats from terrorism will be on full display at this next G20 leaders’ summit. There will also be three key sub-plots happening off the main stage to watch closely."