Economic calendar: CPI inflation in Canada, retail sales in the US

• Tuesday's session brings a mixed opening to the European cash sessio

• GBP gains after strong UK wage growth reading

• Japanese GDP surprises well above forecasts

• Weak data from the Chinese market, with MLF and Reverse-Repo rate cuts in the background

• IMPORTANT: Chinese authorities are considering cutting the stamp duty on stock market transactions for the first time since 2008, people familiar with the matter said, in what would be a serious attempt to revive confidence in the world's second-largest stock market.

The start of Tuesday's session on European markets is going relatively well, nevertheless the scale of the rally signalled by futures before the start of the session has been almost fully erased. The German DAX is currently losing 0.05% and the EU50 is gaining 0.07%. The themes of the Asian session and the pre-opening period in Europe were data from the UK, Japan and China. For more details, please see the Morning Wrap (15.08.2023) entry. 

Overall, today's session will focus primarily on the ZEW report from Germany, the US retail sales data reading and CPI inflation from Canada. At the beginning of the session, the most volatile instruments are: (FX market) GBP and AUD (ups) JPY and USD (downs); (commodities) NATGAS and ALUMINIUM (ups) PALLAD and WHEAT (downs). 

Calendar for today's session: 

10:00 am BST - ZEW institute index for August (Forecast: -14.5. Previously: -14.7)

01:30 pm BST - US retail sales for July (Forecast: 0.4% m/m. Previously: 0.2% m/m)

• Sales excluding cars and fuels (Forecast: 0.4% m/m. Previously: 0.3% m/m). 

• Sales excluding cars (Forecast: 0.4% m/m. Previously: 0.2% m/m)

01:30 pm BST - Canadian CPI inflation for July (Forecast: 3% y/y. Previously: 2.8% y/y).

• Inflation m/m ( Forecast: 0.3% m/m. Previous: 0.1% m/m)

04:00 pm BST - FED Kashkari speech 

09:40 pm BST - Change in API crude oil inventories (Forecast: -2.1 bbl. Previously: 4.07 bbl).