Traders in China returned from the week-long holiday today and managed to tack some gains onto the Shanghai Composite index as local shares continued to forge their way higher, bucking the trend elsewhere in the region. The big winners in China were the property developers, cheered by last week's news of measures to stimulate demand for housing, whilst retailers were knocked back as a result of lower reported sales figures for the holiday week compared to last year. HSBC's Chinese PMI estimates came in a little lower than expected but this isn't attracting much attention - the focus is more on the IMF's downgrade of growth forecasts yesterday and this has served to knock back sentiment across the rest of the region.
After yesterday's marked sell-off on Wall Street, futures are suggesting we'll see a small rebound at the open but it would be premature to suggest that this is going to indicate any sort of turning point. The FOMC meeting minutes will be the stand-out on the economic calendar today but ultimately sentiment has taken something of a hit. The IMF comments heaped woe onto a market already depressed by the threat of Ebola and that uprising in the Middle East - it's difficult to see where the real support will come from. Ahead of the open we're calling toe DOW up 24 at 16743 and the S&P up 2 at 1937.