World stock markets continue to rally heading into the weekend. Chinese equities continued to soar overnight on talk of monetary and fiscal stimulus as Hong Kong gained 3.5% and Shanghai soared another 2.8%. Positive momentum has continued into Europe, where the Dax is up 1.2% and the FTSE is up 0.3%. US index futures are flat to up 0.2%
Commodity trading is mixed today. Natural gas is up 1.7%, but US Crude Oil and Copper are both down about 0.4%. Gold is steady just below $2,700/oz.
Canada GDP for July came in better than expected (0.2% vs street 0.1%) while June GDP was revised upward, a positive sign. US Core PCE inflation, the Fed’s favorite measure, rose less than expected (2.2% vs street 2.3% and previous 2.5%), a sign inflation pressures continue to ease.