European headline shares opened positively today tracking an optimistic finish to trading in Asia on Friday. The optimism was fuelled by data from China which showed that despite producer prices dropping in July, the prices still fell at a slower rate compared to the previous month. Although bears would be quick to point out that it seems bulls are simply trying to find any positive angles in what would appear to be poor data, the decline in producer prices in the context of better-then-expected export data from China yesterday seems to be providing bulls with enough ammunition to monopolise the markets.
Political economists will be fretting over news reports today that US President, Barack Obama, has cancelled a one-on-one summit with Russian President, Vladimir Putin, due next month. The cancellation, according to the Whitehouse, was owing to Russia granting asylum to the infamous Edward Snowden. Although the announcement hasn’t rocked the markets, it does pave the way for concerns that a greater dispersion between the two economic powerhouses could affect global economic policies.