Lots of to and fro with focus shifting from energy markets to the global inflation outlook and back. This morning the eurozone posted a drop in inflation in August to 3.8% m/m versus 4.0% the prior month. A few more months like that and the ECB will be able to drop its anti-inflation facade.
Gustav remains a major focus as it is projected to follow a Katrina-like path. Oil has rebounded $1.25 this morning to above $116.00.
Overnight the Japanese government released its first stimulus package in several years, to the tune of JPY 11.7 trln. Analysts are unimpressed.
