It's been a rather mixed start to the week for the major Asian equity markets. Friday's disappointing finish in Europe and on Wall Street certainly put the pressure on, but the fact China recorded another softer than expected non-manufacturing PMI print has offered a degree of relief. This, combined with reports that further curbs on property purchasing have been lifted in China does suggest we're not going to see any rapid need to tighten policy. As a result, it's perhaps no surprise that the Shanghai Composite has put in a stellar performance, recovering the losses posted late on Friday adding close on 2%.
Wall Street is similarly looking to claw back some of last week's losses at the open, although futures markets are already giving up some of their earlier optimism. We are now looking at something of a temporary lull - August is notorious for lower than average volumes, the economic calendar is rather quiet and high profile earnings news is relatively absent today, too. It could now be a case of traders sitting on hands in the short term, although with at least the economic calendar set to pick up from tomorrow any calm could be short lived. Ahead of the open we're calling the DOW up 22 at 16515 and the S&P up 3 at 1928.