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  • Risk aversion got a slight boost with news that the United States had authorised airstrikes over Iraq. Neither the Russo-Ukrainian situation nor the Iraqi situation is particularly changing economic risks at this stage, but markets seem to be looking for distractions.
  • ECB president Draghi gave the Italian government a stern telling off yesterday for contributing to the uneven recovery of the Euro area. Today France publishes industrial production data, with some hopes that their weakness will be moderating.
  • Chinese trade data showed very strong export growth which offers some support for the idea of a reasonably robust global consumer. Chinese import demand did contract, but the impact of that is felt in a more narrow group of economies.
  • UK construction activity may be constrained by capacity issues. The US is offering unit labour cost and productivity data, which does have long term significance (particularly ahead of this month's Jackson Hole Symposium) but is unlikely to affect markets near term.

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