European cash equity markets have held higher this afternoon to snap a three-day losing streak (FTSE +0.8%, DAX +1.3%, CAC +0.9%). Mining stocks have outperformed after strong corporate earning reports from BHP Billiton and Antofagasta. Financial stocks have lagged meanwhile, led lower by Provident Financial who slumped over seventy-percent at one stage after forecasting a loss in the third quarter. In fixed, core EU bonds have seen minor divergence with the German 10-year benchmark back to flat while its UK counterpart nurses a minor loss. Treasuries are also underwater with this afternoon’s macro releases doing little to dictate otherwise. The Canadian Dollar did rally after Canadian retail sales beat ex. auto at +0.7% month-on-month (f/c. +0.3%). Elsewhere, oil prices have been choppy with US crude futures falling on news that the Sharara oil field had been reopened before rallying again on reports it had been forced to shut soon after. We did also hear from San Francisco Fed Governor Williams who said there has been a full recovery from the housing crash and recession, adding that he does not see any signs of recession.
* Politico: President Donald Trump’s top aides and congressional leaders have made significant strides in shaping a tax overhaul, moving far beyond the six-paragraph framework pushed out in July that stoked fears about their ability to deliver on one of the GOP’s top priorities.
* Libya lifted the force majeure on the Sharara oil field after it reopened today but was forced to close again after a new protest group.
* North Korea said the US-South Korean military drills would certainty add gasoline to the fire and drive the current situation to further deterioration.
* Comments from ECB Vice President Vitor Constancio did not address the outlook for monetary policy or the economy.
* Canadian Retail Sales Data (Jun):
Retail Sales M/M +0.1% versus +0.3% expected, previous +0.6% revised to +0.5%
Retail Sales Ex. Auto M/M +0.7% versus +0.3% expected, previous -0.1%
* US FHFA House Price Index (Jun): M/M +0.1% versus +0.4% expected, previous +0.4% revised to +0.3%
* Philadelphia Fed Non-Manufacturing Survey (Aug) 31.8, previous 23.4
* Richmond Fed Manufacturing Index (Aug) 14 versus 12 expected, previous 14
* San Francisco Fed Governor Williams said there has been a full recovery from the housing crash and recession, adding that he does not see any signs of recession.
* FDIC: US banking sector profits rose 10.7% in the second quarter versus a year ago while average return on assets was at the highest in ten years.