Europe

Beyond the plethora of central bank speakers, market focus will concentrate on Eurozone inflation and US data releases, including durable goods, home sales, and the personal income and spending report on Friday. We also get China PMIs, Japanese CPI and industrial production, the RBNZ meeting and Brexit negotiations (4th). Additionally, there will be monetary policy meetings in Mexico, Colombia, Czech Republic, Thailand and Egypt.

European stocks rose as the euro tumbled following Germany’s election result which was dubbed a "Nightmare Victory" for Merkel and could lead to potentially complicated coalition talks and perhaps even another early election. U.S. equity-index futures point to a lower open, while Asian equities slide after a plunge in Chinese property developer names over worries of new real estate curbs as well as tech stocks following more iPhone delivery concerns. S&P500 futures are steady, down slightly by just over -0.1%, after closing little changed on Friday.

Following yesterday's German election, which despite Merkel's 4th victory was a rout for the establishment "grand coalition" parties of CDU/CSU and SPD which saw its worst election performance since the 1940s offset by a surge in the ascendant right-wing AfD, there have been numerous analyst reactions to the "sudden reemergence" of populism in Europe, but one we find perhaps the most insightful and useful, comes from Bloomberg macro commentator Mark Cudmore, who writes this morning that for all the concerns, it's not so much Germany as what is about to happen in European peer Spain, where C

Authored by Mike Shedlock via MishTalk.com,

The ECB claims that Target2 does not represent capital flight. Evidence says the ECB is wrong, especially for Italy and Spain.

I have discussed this previously, but let’s recap Target2 before taking a look at new charts.

Project Syndicate writer, Hans-Werner Sinn, explains why the ECB’s asset purchases and Target2 imbalances constitute “Europe’s Secret Bailout”.

Authored by Andrew Korybko via Oriental Review,

The EU’s policy of “replacement migration” is an economic failure and threatens to undermine China’s New Silk Road strategy for Europe by diminishing the continent’s much-needed consumer market potential, which should thereby serve as an impetus for Beijing to consider investing in social programs there as a means of encouraging replacement fertility for the EU’s citizens.

The Roots Of “Replacement Migration”