Asian markets closed the day mixed after another batch of disappointing data from China. Deflationary winds have not spared the second largest economy in the world as yearly CPI data came in at 0.8% versus an expected 1%. A deflating property market, overcapacity and an ailing industrial sector are making a stronger case for possible future government intervention to boost growth. The Shanghai Composite Index responded positively (+1.49%) pricing in the belief that more easing is on the horizon.
European equity markets are currently posting gains as news of an impromptu meeting of European finance minister is set to take stage on Wednesday. Officials will discuss Greek negotiations regarding the 2010 bailout loans. Although hopes of a possible deal have pushed sovereign bonds higher, the Euro is currently trading lower at $1.1287.
Another quiet day in the US due to the lack of major economic releases. As earnings season approaches its conclusion, currency impacts will be the theme for multinationals.