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Euro woes. China grows.

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  • Euro area politics looms again. France was downgraded by a credit rating agency on Friday, but no one really cares about that sort of thing. However, Portuguese yields remain elevated by their political environment, and there have been calls over the weekend for the Spanish PM to resign.
  • China saw second quarter economic growth of 7.5% according to the official GDP statistics, which was in line with market expectations. After some disappointment in the Chinese data flow, investors are probably relieved with an in line number.
  • US data makes up the bulk of today's releases. We see the Empire State survey of regional business sentiment coming in unchanged from the initial readings. Retail sales should show the American consumer in pursuit of their dreams in the shopping mall, with a 0.8% headline.
  • US data may be somewhat overshadowed by the looming prospect of the Fed Chairman testifying to Congress mid week. Hopefully the Chairman will clarify (again) the nuances of policy, and point out that accommodative does not necessarily mean unchanged.

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