German Retail Sales turn Volatile

EU U-rate is unchanged - The Euro-Area Unemployment Rate remained in June at 9.9% , unchanged from the May reading, according to data released by Eurostat. The Unemployment Rate was 10.2% in June 2010. According to the official publication 15.640 million men and women in the euro-Zone were unemployed in June 2011.

UK MFG PMI shows contraction for first time in two years - UK Purchasing Manager Index Manufacturing decreased to 49.1 point in July, down from the June reading of 51.3 points, according to data released by Markit Economics. The result is below market consensus of 51.1. It is the first time since June 2009 the result drops below 50 points (neutral).

German MFG PMI slips again - The German Purchasing Manager Index Manufacturing decreased from 54.6 points in June to 52.0 points in July, according to data released by Markit economics. The indicator dropped for the third consecutive and to its lowest since October 2009.

China PMI improves but still shows contraction in sector - China’s July HSBC Manufacturing PMI improves to 49.3 vs 48.9

In Geopolitics and more...

No default after all; holding breath on S&P downgrade - After months of vitriolic discord, Republican and Democratic lawmakers are expected to vote on a White House-backed deal to raise the borrowing limit and avert an unprecedented debt default.

Syria shows its teeth, devours its own - Syria’s army pressed its crackdown on Hama as thousands took to the streets of Damascus and other cities to protest the killing of more than 140 people by President Bashar al-Assad’s security forces. On the first day of Ramadan, the Muslim holy month, artillery pounded parts of Hama, destroying four buildings, Mahmoud Merhi, head of the Damascus-based Arab Organization for Human Rights, said in a telephone interview.

In Markets
Gold, not so glittering this AM - Gold fell from the previous session’s lifetime highs in European trading on Monday morning, with market players returning to riskier assets such as equities after US lawmakers reached a deal to raise the country’s debt ceiling. Spot gold fell $10.20 to $1,616.30/1,617.10 per ounce. Gold prices had risen nine percent over July to a record peak of $1,632.90

US debt news trumps weak Euro-Area eco-data- European markets are shrugging off a weaker manufacturing base over the continent, and are recording broad gains following last night´s debt agreement by US leaders. By mid-day, the FTSE 100 is up more than 70 points or 1.25%, while the DAX and CAC 40 rise by 0.72% and 1.10% respectively.

Stock futures rally in wake of no quake - Stock index futures surged more than 1 percent on Monday on relief over a deal in Washington to raise the debt ceiling, avoiding an unprecedented default.

Treasuries show their sophistication and bravado - Treasuries fell the most in more than a week after congressional leaders approved a plan to raise the debt ceiling, boosting stocks and ending a stalemate over U.S. government borrowing that threatened to result in a default. Yields on 10-year debt rose from the lowest this year as lawmakers said an agreement was near. The Treasury market and the credit default market knew what they were doing after all- little risk of default after all just cloudy with a chance of meatballs.

US Data:
Heck of a way to end July - Stocks ended their worst week in a year on Friday on the political logjam in Washington over the debt ceiling.