European stocks took off at 4am after July Euro Region manufacturing and services composite index rose to a 3 mo high at 56.7 vs expectations of 55.5 and up from 56 in June. While the gain was led by Germany, who is in a much stronger position than the rest of the continent, it was a gain nonetheless. Also, both French business and consumer confidence rose above forecasts, May Industrial Orders for the Euro region unexpectedly rose by 3.8% vs an expected drop of .1% and UK retail sales were good. The euro and pound are higher in response. Bernanke said how uncertain the economic outlook is and seems to be realizing that his bag of tricks is shrinking. We all know the outlook is uncertain but many need to realize the Fed is becoming more impotent in dealing with another downturn. Chinese stocks rose for a 4th day to a 4 week high and copper is now at an 8 week high. Joining India, Taiwan, Canada, Australia, Malaysia SK and Thailand, Brazil raised rates.
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