GLOBAL CAPITAL MARKETS OVERVIEW:

Major European stock markets opened the week in the green, with the Dax up 1% and the Stoxx 600 up 0.7%, led by cyclical and growth stocks as investors await fresh economic data and more corporate earnings to assess Economic Outlook and Recession Risks. On the data front, US inflation and UK GDP will focus later this week. Veolia shares rose more than 3% on the corporate front after confirming it would sell the Suez UK waste business to Australia's Macquarie Group for around 2.4 billion euros. On the other hand, Siemens Energy (-0.5%) warned of a higher-than-expected net loss in 2022 due to restructuring its operations in Russia. The FTSE MIB index was just above 22,600 on Monday, rebounding slightly from Friday's losses, with sharp gains in the tech and energy sectors offsetting losses in financial stocks as investors continued to assess central bank actions amid soaring inflation and a slowing economy. Degree of positivity. Tenaris extended its volatility, rising 1.5%, while STMicroelectronics and Montclair rebounded from Friday's slump, gaining 1% each. Meanwhile, Banco BPM and Mediobanca led losses in bank stocks, partially offsetting gains from the previous session, when strong U.S. labor data reinforced bets on an aggressive Fed. The CAC 40 rose above 6,500 on Monday, rebounding from Friday's losses on the back of the tech sector, as investors awaited this week's CPI data, given the Fed's latest hawkish signal after strong jobs data. evaluated. Dassault Systemes and STMicroelectronics led the Paris tech sector higher, rebounding from losses in the previous session. Meanwhile, Veolia Environnement shares rose 2% after it sold its Suez Canal waste removal services to Australia's Macquarie. London stocks pared losses on Monday, with the benchmark FTSE 100 hovering near a two-month high of 7,470, boosted by heavyweight materials and energy stocks. Oil majors Shell and BP, as well as major miners Glencore and Anglo American, were all deep in the green, tracking gains in crude oil and metals prices, respectively. Meanwhile, PageGroup reported a 79.3% increase in half-year operating profit. The ruble-based MOEX-Russia index rose sharply to close above 2,090 on Monday as the Moscow Exchange delayed opening the stock market to foreign investors in "friendly" countries. Russian stocks were expected to fall sharply this month after an announcement that foreign investors were entering the country sparked a sell-off, which had its second-lowest close since 2017 on Friday. Gains in Moscow were spread across all sectors, with oil majors Lukoil and Rosneft gaining 2%, while blue chips in the financial sector led the gains, with Sberbank rising 2.5%. On the other hand, Russian agriculture fell 1% after reporting second-quarter financial results. On Monday, the NZX 50 fell 25.66 points, or 0.22%, to settle at 11,702.81, extending losses from the previous session, as Friday's strong U.S. jobs report bolstered the Fed's case for a more aggressive rate hike. Looking at local data, New Zealand's near-term inflation rate is expected to moderate in the third quarter of 2022, with the two-year inflation forecast dropping from 3.29% to 3.07%. Traders are awaiting Wednesday's U.S. consumer price report for July, likely to see a slight pullback in headline numbers but a further acceleration in core inflation. Meanwhile, local media said a domestic earnings report would be released next week. Livestock improvement companies fell 12.9%, followed by EROAD Ltd (down 6.1%), New Zealand Automotive Investments (down 5.7%), Skylerup Holdings (up 5.1%), and Bremworth Ltd (up 3.9%). On Monday, the Shanghai Composite Index rose 0.31% to close at 3,237 points, and the Shenzhen Composite Index edged up 0.27% to close at 12,302 points, rising for the third consecutive trading day. China's trade data released over the weekend surprised the market and triggered economic gains. I hope for a rebound. Meanwhile, investors remained cautious as the resurgence of the domestic coronavirus outbreak and rising tensions with the U.S. over the Taiwan issue dampened sentiment. New energy and resource stocks led gains, with Tianqi Lithium (1.1%), Sun Power (2.8%), and China Mining Resources (6.1%) gaining notably. Semiconductors and other related companies also rose on expectations of more government support for the sector, including Tongfu Microelectronics (10%), Nora Technology (2.3%), and JCET Group (1%). Hong Kong stocks ended a three-session rally on Monday, dragged down by technology shares, with the benchmark Hang Seng Index retreating below 20,050 from a peak in more than a week. Headlines rattled investors that Fitch Ratings noted that China's property market woes could lead to various impacts beyond the sector. Meanwhile, Sino-U.S. relations have grown increasingly tense, with the White House calling Beijing’s actions in the Taiwan Strait provocative. On the data front, China's trade surplus hit a record high in July, mainly due to a surge in exports, but failed to lift sentiment on concerns that weaker global demand could weigh on shipments in the coming months. Shares in Country Garden Holdings and Alibaba Group Holding fell the most, down about 6.6% and 4.4%, respectively. Japan Nikkei 225 rose 0.26% to close at 28,249 on Monday, while the broader Topix index edged up 0.22% to close at 1,951 on Monday, extending last week's gains on upbeat domestic corporate earnings and prospects. Meanwhile, gains were capped after last week's unexpectedly strong U.S. jobs report supported the Fed's staunchly hawkish stance. Suzuki Motor led the benchmark up 10.4 percent after the automaker reported a 36.8 percent rise in operating profit in its latest quarter, while electronics company Lasertec rose 9.5 percent after reporting a record fiscal year net profit and forecasting further growth. Bandai Namco rose 4.1 percent after the gaming company raised its half-year profit forecast, and camera and office equipment maker Canon rose 4.6 percent after announcing its second share buyback this year. Elsewhere, SoftBank reported a quarterly loss of $23 billion after its Vision Fund investments were hit by a sell-off in global tech stocks. Australia S&P/ASX 200 edged up 0.07% to 7,021 on Monday, closing at its highest level in nearly two months, with gains in commodity-related stocks outpacing losses in other major sectors. OZ Minerals led the index higher, rising more than 35 percent after the nickel and copper miner announced it rejected an A$8.34 billion takeover bid from BHP Billiton, which it believes is undervalued. Other notable gainers in the resources sector included Fortescue Metals (4.5%), Rio Tinto (1.9%), and Woodside Energy (2.1%). Meanwhile, Aurizon fell 3.5% after the railroad company cut its dividend by a quarter, and profit after tax fell 15%. Suncorp also fell 4.6% after the insurer reported disappointing revenue and earnings.On Monday, all three major U.S. stock indexes pared early gains and briefly entered negative territory as weak guidance from Nvidia rattled sentiment. Shares of Nvidia plummeted nearly 10% after the company warned of poor quarterly results amid a slump in its gaming business. The disappointing results came days after chipmakers Intel Corp, Qualcomm Inc, and Sony Group forecasted weak sales that weighed heavily on semiconductor stocks. On the positive side, shares of clean energy companies rose after the Senate approved a $430 billion bill to address climate change, lower drug prices, and raise corporate taxes. The market moves come as investors weighed a stronger-than-expected wage report last week, raising the prospect of the Fed continuing to take an aggressive stance. This week, all eyes are on the U.S. inflation report due on Wednesday, showing a more modest pace of price increases.

REVIEWING ECONOMIC DATA: 

Looking at the last economic data:

-TW: Taiwan's trade surplus narrowed to $5.03 billion in July 2022 from $5.89 billion a year earlier, compared with market expectations of $4.49 billion. Exports rose 14.2 percent from a year earlier to $43.32 billion, with sales of machinery and electrical equipment (15.5 percent) and mineral products (123.4 percent) rising. Among the major destinations, sales rose in China (6.1%) and the US (24.8%). Meanwhile, imports rose by 19.4% to $38.29 billion due to higher purchases of machinery and electrical equipment (11.1%). Imports grew faster in China (9.8%) and the US (18.3%).

- TW: Taiwan's trade surplus narrowed to $5.03 billion in July 2022 from $5.89 billion a year earlier, compared with market expectations of $4.49 billion. Exports rose 14.2 percent from a year earlier to $43.32 billion, with sales of machinery and electrical equipment (15.5 percent) and mineral products (123.4 percent) rising. Among the major destinations, sales rose in China (6.1%) and the US (24.8%). Meanwhile, imports rose by 19.4% to $38.29 billion due to higher purchases of machinery and electrical equipment (11.1%). Imports grew faster in China (9.8%) and the US (18.3%).

- JP: In June 2022, Japan's current account turned from a surplus of 739.6 billion yen in the same month of the previous year to a deficit of 132.4 billion yen, while the market expected a shortfall of 703.8 billion yen. This was the first current account gap since January, with the goods account reversing from a surplus of 633.6 billion yen to a deficit of 1,114 billion yen, with exports up 20.4% and imports up 49.2%. At the same time, the primary income surplus widened to 1,220 billion yen from the previous year's 522.5 billion yen; the secondary income showed a surplus of 160 million yen, the opposite of the previous year's shortfall of 790 million yen. Meanwhile, the service account gap narrowed to 254.5 billion yen from 337.6 billion yen.

- US: In July 2022, U.S. consumers’ inflation expectations for the year ahead fell to 6.2% from a record high of 6.8% set in June, the lowest level in five months. Expectations for natural gas fell sharply (down 4.2 percentage points to 1.5%, the second-largest drop on record) and food price changes (down 2.5 percentage points to 6.7%, the largest drop on record). Expectations for rent change over the coming year (from 10.1% to 9.9%), healthcare (from 9.5% to 9.2%), and university education (from 8.7% to 8.4%) also fell. Meanwhile, the median forecast for growth in household spending fell for the second month to 6.9%. In addition, the probability of an increase in the unemployment rate after one year fell by 0.2 percentage points to 40.2%. Inflation expectations three years ago fell to 3.2% from 3.6%.

LOOKING AHEAD:   

Today, investors will receive:

-USD: NFIB Small Business Index, Prelim Nonfarm Productivity q/q, Prelim Unit Labor Costs q/q, and IBD/TIPP Economic Optimism.

- GBP: BRC Retail Sales Monitor y/y and 30-y Bond Auction.

- JPY: M2 Money Stock y/y, 30-y Bond Auction, and Prelim Machine Tool Orders y/y.

- CNY: M2 Money Supply y/ and New Loans.

- AUD: Westpac Consumer Sentiment and NAB Business Confidence.

KEY EQUITY & BOND MARKET DRIVERS:

- US: U.S. stock futures, which track the broader market, rose about 0.5% on Monday, putting Wall Street on track to start the week higher as investors reassess the prospect of tightening monetary policy. A stronger-than-expected wages report last week raised the odds that the Fed will continue to take an aggressive stance but suggested the world's largest economy could cope. This week, all eyes are on the U.S. inflation report due on Wednesday. The report is expected to show a slowdown in oil prices, driven by lower gasoline costs. Meanwhile, the Senate approved a $430 billion bill to fight climate change, lower drug prices, and raise corporate taxes. The major moving averages were mixed in Friday's regular trading session, with the Dow up 0.23%, the S&P 500 and Nasdaq Composite down 0.16% and 0.50%, respectively.

- IT: Yields on Italian 10-year BTP were slightly higher, hovering above the 3% mark, moving in the opposite direction of their European counterparts, as political tensions and the prospect of higher borrowing costs heightened concerns about the evolution of Italian credit risk. Moody's downgraded Italy's rating outlook to "negative" from "stable," citing heightened risks ahead of an imminent ECB rate hike and uncertainty ahead of next month's snap elections, now led by a right-wing coalition. The ECB is expected to extend its tightening cycle at its next meeting as the eurozone faces record-high inflation. Meanwhile, investors continued to assess the support the ECB's TPI provides to credit risk in highly indebted economies. The spread between 10-year gilts and German bunds stood at 215 basis points, up from 205 in early August, reflecting a broader view of Italian debt risk.

- GE: German 10-year bond yields fell below 0.8% as prolonged recession fears, and geopolitical tensions in Taiwan prompted investors to turn to safer government bonds. July Purchasing Managers' Index (PMI) data, retail sales, and a gauge of consumer and economic sentiment were all well below expectations in many of Europe's largest economies, while concerns over the energy crisis intensified. Germany's low levels of natural gas storage have raised concerns about rationing ahead of a harsh winter, while France's nuclear power production has been hit further by dry rivers. As a result, the EU agreed to cut gas use by 15% by March. Meanwhile, investors continued to assess expectations that the European Central Bank is about to raise interest rates to combat record-high inflation.

- US: U.S. stock futures, which track the broader market, rose about 0.5 percent on Monday, with Wall Street poised to start the week higher as investors reassess the prospect of tightening monetary policy. A stronger-than-expected wages report last week raised the odds that the Fed will continue to take an aggressive stance but suggested the world's largest economy could cope. This week, all eyes are on the U.S. inflation report due on Wednesday. The report is expected to show a slowdown in oil prices, driven by lower gasoline costs. Meanwhile, the Senate approved a $430 billion bill to fight climate change, lower drug prices, and raise corporate taxes. The major moving averages were mixed in Friday's regular trading session, with the Dow up 0.23%, the S&P 500, and the Nasdaq Composite down 0.16% and 0.50%, respectively.

STOCK MARKET SECTORS:

- High: Energy, Consumer Discretionary, Communication Services, Materials, Real Estate.

- Low: Information Technology, Financials, Consumer Staples, Industrials.

TOP CURRENCY & COMMODITIES MARKET DRIVERS: 

- CNY: The offshore yuan held steady at around 6.76 to the dollar as solid Chinese trade data offset pressure from a surprisingly strong U.S. jobs report. Data released over the weekend showed China's export growth unexpectedly accelerated in July, with the trade surplus hitting a record high. Investors are also awaiting Chinese inflation and credit data later this week to assess the state of the world's second-largest economy. Meanwhile, the yuan remains vulnerable to wild swings amid a resurgence of the domestic Covid-19 outbreak and rising tensions with the U.S. over Taiwan.

CHART OF THE DAY:

The FTSE MIB index was just above 22,600 on Monday, rebounding slightly from Friday's losses, with sharp gains in the tech and energy sectors offsetting losses in financial stocks as investors continued to assess central bank actions amid soaring inflation and a slowing economy. Degree of positivity. Tenaris extended its volatility, rising 1.5%, while STMicroelectronics and Montclair rebounded from Friday's slump, gaining 1% each. Meanwhile, Banco BPM and Mediobanca led losses in bank stocks, partially offsetting gains from the previous session, when strong U.S. labor data reinforced bets on an aggressive Fed.

 

- Italia FTSE MIB index - D1, Resistance around ~ 23 042, Support (target zone) around ~ 21627

GLOBAL CAPITAL MARKETS OVERVIEW: Major European stock markets opened the week in the green, with the Dax up 1% and the Stoxx 600 up 0.7%, led by cyclical and growth stocks as investors await fresh economic data and more corporate earnings to assess Economic Outlook and Recession Risks. On the data front, US inflation and UK GDP will focus later this week. Veolia shares rose more than 3% on the corporate front after confirming it would sell the Suez UK waste business to Australia's Macquarie Group for around 2.4 billion euros. On the other hand, Siemens Energy (-0.5%) warned of a higher-than-expected net loss in 2022 due to restructuring its operations in Russia. The FTSE MIB index was just above 22,600 on Monday, rebounding slightly from Friday's losses, with sharp gains in the tech and energy sectors offsetting losses in financial stocks as investors continued to assess central bank actions amid soaring inflation and a slowing economy. Degree of positivity. Tenaris extended its volatility, rising 1.5%, while STMicroelectronics and Montclair rebounded from Friday's slump, gaining 1% each. Meanwhile, Banco BPM and Mediobanca led losses in bank stocks, partially offsetting gains from the previous session, when strong U.S. labor data reinforced bets on an aggressive Fed. The CAC 40 rose above 6,500 on Monday, rebounding from Friday's losses on the back of the tech sector, as investors awaited this week's CPI data, given the Fed's latest hawkish signal after strong jobs data. evaluated. Dassault Systemes and STMicroelectronics led the Paris tech sector higher, rebounding from losses in the previous session. Meanwhile, Veolia Environnement shares rose 2% after it sold its Suez Canal waste removal services to Australia's Macquarie. London stocks pared losses on Monday, with the benchmark FTSE 100 hovering near a two-month high of 7,470, boosted by heavyweight materials and energy stocks. Oil majors Shell and BP, as well as major miners Glencore and Anglo American, were all deep in the green, tracking gains in crude oil and metals prices, respectively. Meanwhile, PageGroup reported a 79.3% increase in half-year operating profit. The ruble-based MOEX-Russia index rose sharply to close above 2,090 on Monday as the Moscow Exchange delayed opening the stock market to foreign investors in "friendly" countries. Russian stocks were expected to fall sharply this month after an announcement that foreign investors were entering the country sparked a sell-off, which had its second-lowest close since 2017 on Friday. Gains in Moscow were spread across all sectors, with oil majors Lukoil and Rosneft gaining 2%, while blue chips in the financial sector led the gains, with Sberbank rising 2.5%. On the other hand, Russian agriculture fell 1% after reporting second-quarter financial results. On Monday, the NZX 50 fell 25.66 points, or 0.22%, to settle at 11,702.81, extending losses from the previous session, as Friday's strong U.S. jobs report bolstered the Fed's case for a more aggressive rate hike. Looking at local data, New Zealand's near-term inflation rate is expected to moderate in the third quarter of 2022, with the two-year inflation forecast dropping from 3.29% to 3.07%. Traders are awaiting Wednesday's U.S. consumer price report for July, likely to see a slight pullback in headline numbers but a further acceleration in core inflation. Meanwhile, local media said a domestic earnings report would be released next week. Livestock improvement companies fell 12.9%, followed by EROAD Ltd (down 6.1%), New Zealand Automotive Investments (down 5.7%), Skylerup Holdings (up 5.1%), and Bremworth Ltd (up 3.9%). On Monday, the Shanghai Composite Index rose 0.31% to close at 3,237 points, and the Shenzhen Composite Index edged up 0.27% to close at 12,302 points, rising for the third consecutive trading day. China's trade data released over the weekend surprised the market and triggered economic gains. I hope for a rebound. Meanwhile, investors remained cautious as the resurgence of the domestic coronavirus outbreak and rising tensions with the U.S. over the Taiwan issue dampened sentiment. New energy and resource stocks led gains, with Tianqi Lithium (1.1%), Sun Power (2.8%), and China Mining Resources (6.1%) gaining notably. Semiconductors and other related companies also rose on expectations of more government support for the sector, including Tongfu Microelectronics (10%), Nora Technology (2.3%), and JCET Group (1%). Hong Kong stocks ended a three-session rally on Monday, dragged down by technology shares, with the benchmark Hang Seng Index retreating below 20,050 from a peak in more than a week. Headlines rattled investors that Fitch Ratings noted that China's property market woes could lead to various impacts beyond the sector. Meanwhile, Sino-U.S. relations have grown increasingly tense, with the White House calling Beijing’s actions in the Taiwan Strait provocative. On the data front, China's trade surplus hit a record high in July, mainly due to a surge in exports, but failed to lift sentiment on concerns that weaker global demand could weigh on shipments in the coming months. Shares in Country Garden Holdings and Alibaba Group Holding fell the most, down about 6.6% and 4.4%, respectively. Japan Nikkei 225 rose 0.26% to close at 28,249 on Monday, while the broader Topix index edged up 0.22% to close at 1,951 on Monday, extending last week's gains on upbeat domestic corporate earnings and prospects. Meanwhile, gains were capped after last week's unexpectedly strong U.S. jobs report supported the Fed's staunchly hawkish stance. Suzuki Motor led the benchmark up 10.4 percent after the automaker reported a 36.8 percent rise in operating profit in its latest quarter, while electronics company Lasertec rose 9.5 percent after reporting a record fiscal year net profit and forecasting further growth. Bandai Namco rose 4.1 percent after the gaming company raised its half-year profit forecast, and camera and office equipment maker Canon rose 4.6 percent after announcing its second share buyback this year. Elsewhere, SoftBank reported a quarterly loss of $23 billion after its Vision Fund investments were hit by a sell-off in global tech stocks. Australia S&P/ASX 200 edged up 0.07% to 7,021 on Monday, closing at its highest level in nearly two months, with gains in commodity-related stocks outpacing losses in other major sectors. OZ Minerals led the index higher, rising more than 35 percent after the nickel and copper miner announced it rejected an A$8.34 billion takeover bid from BHP Billiton, which it believes is undervalued. Other notable gainers in the resources sector included Fortescue Metals (4.5%), Rio Tinto (1.9%), and Woodside Energy (2.1%). Meanwhile, Aurizon fell 3.5% after the railroad company cut its dividend by a quarter, and profit after tax fell 15%. Suncorp also fell 4.6% after the insurer reported disappointing revenue and earnings.On Monday, all three major U.S. stock indexes pared early gains and briefly entered negative territory as weak guidance from Nvidia rattled sentiment. Shares of Nvidia plummeted nearly 10% after the company warned of poor quarterly results amid a slump in its gaming business. The disappointing results came days after chipmakers Intel Corp, Qualcomm Inc, and Sony Group forecasted weak sales that weighed heavily on semiconductor stocks. On the positive side, shares of clean energy companies rose after the Senate approved a $430 billion bill to address climate change, lower drug prices, and raise corporate taxes. The market moves come as investors weighed a stronger-than-expected wage report last week, raising the prospect of the Fed continuing to take an aggressive stance. This week, all eyes are on the U.S. inflation report due on Wednesday, showing a more modest pace of price increases. REVIEWING ECONOMIC DATA:  Looking at the last economic data: -TW: Taiwan's trade surplus narrowed to $5.03 billion in July 2022 from $5.89 billion a year earlier, compared with market expectations of $4.49 billion. Exports rose 14.2 percent from a year earlier to $43.32 billion, with sales of machinery and electrical equipment (15.5 percent) and mineral products (123.4 percent) rising. Among the major destinations, sales rose in China (6.1%) and the US (24.8%). Meanwhile, imports rose by 19.4% to $38.29 billion due to higher purchases of machinery and electrical equipment (11.1%). Imports grew faster in China (9.8%) and the US (18.3%). - TW: Taiwan's trade surplus narrowed to $5.03 billion in July 2022 from $5.89 billion a year earlier, compared with market expectations of $4.49 billion. Exports rose 14.2 percent from a year earlier to $43.32 billion, with sales of machinery and electrical equipment (15.5 percent) and mineral products (123.4 percent) rising. Among the major destinations, sales rose in China (6.1%) and the US (24.8%). Meanwhile, imports rose by 19.4% to $38.29 billion due to higher purchases of machinery and electrical equipment (11.1%). Imports grew faster in China (9.8%) and the US (18.3%). - JP: In June 2022, Japan's current account turned from a surplus of 739.6 billion yen in the same month of the previous year to a deficit of 132.4 billion yen, while the market expected a shortfall of 703.8 billion yen. This was the first current account gap since January, with the goods account reversing from a surplus of 633.6 billion yen to a deficit of 1,114 billion yen, with exports up 20.4% and imports up 49.2%. At the same time, the primary income surplus widened to 1,220 billion yen from the previous year's 522.5 billion yen; the secondary income showed a surplus of 160 million yen, the opposite of the previous year's shortfall of 790 million yen. Meanwhile, the service account gap narrowed to 254.5 billion yen from 337.6 billion yen. - US: In July 2022, U.S. consumers’ inflation expectations for the year ahead fell to 6.2% from a record high of 6.8% set in June, the lowest level in five months. Expectations for natural gas fell sharply (down 4.2 percentage points to 1.5%, the second-largest drop on record) and food price changes (down 2.5 percentage points to 6.7%, the largest drop on record). Expectations for rent change over the coming year (from 10.1% to 9.9%), healthcare (from 9.5% to 9.2%), and university education (from 8.7% to 8.4%) also fell. Meanwhile, the median forecast for growth in household spending fell for the second month to 6.9%. In addition, the probability of an increase in the unemployment rate after one year fell by 0.2 percentage points to 40.2%. Inflation expectations three years ago fell to 3.2% from 3.6%. LOOKING AHEAD:    Today, investors will receive: -USD: NFIB Small Business Index, Prelim Nonfarm Productivity q/q, Prelim Unit Labor Costs q/q, and IBD/TIPP Economic Optimism. - GBP: BRC Retail Sales Monitor y/y and 30-y Bond Auction. - JPY: M2 Money Stock y/y, 30-y Bond Auction, and Prelim Machine Tool Orders y/y. - CNY: M2 Money Supply y/ and New Loans. - AUD: Westpac Consumer Sentiment and NAB Business Confidence. KEY EQUITY & BOND MARKET DRIVERS: - US: U.S. stock futures, which track the broader market, rose about 0.5% on Monday, putting Wall Street on track to start the week higher as investors reassess the prospect of tightening monetary policy. A stronger-than-expected wages report last week raised the odds that the Fed will continue to take an aggressive stance but suggested the world's largest economy could cope. This week, all eyes are on the U.S. inflation report due on Wednesday. The report is expected to show a slowdown in oil prices, driven by lower gasoline costs. Meanwhile, the Senate approved a $430 billion bill to fight climate change, lower drug prices, and raise corporate taxes. The major moving averages were mixed in Friday's regular trading session, with the Dow up 0.23%, the S&P 500 and Nasdaq Composite down 0.16% and 0.50%, respectively. - IT: Yields on Italian 10-year BTP were slightly higher, hovering above the 3% mark, moving in the opposite direction of their European counterparts, as political tensions and the prospect of higher borrowing costs heightened concerns about the evolution of Italian credit risk. Moody's downgraded Italy's rating outlook to "negative" from "stable," citing heightened risks ahead of an imminent ECB rate hike and uncertainty ahead of next month's snap elections, now led by a right-wing coalition. The ECB is expected to extend its tightening cycle at its next meeting as the eurozone faces record-high inflation. Meanwhile, investors continued to assess the support the ECB's TPI provides to credit risk in highly indebted economies. The spread between 10-year gilts and German bunds stood at 215 basis points, up from 205 in early August, reflecting a broader view of Italian debt risk. - GE: German 10-year bond yields fell below 0.8% as prolonged recession fears, and geopolitical tensions in Taiwan prompted investors to turn to safer government bonds. July Purchasing Managers' Index (PMI) data, retail sales, and a gauge of consumer and economic sentiment were all well below expectations in many of Europe's largest economies, while concerns over the energy crisis intensified. Germany's low levels of natural gas storage have raised concerns about rationing ahead of a harsh winter, while France's nuclear power production has been hit further by dry rivers. As a result, the EU agreed to cut gas use by 15% by March. Meanwhile, investors continued to assess expectations that the European Central Bank is about to raise interest rates to combat record-high inflation. - US: U.S. stock futures, which track the broader market, rose about 0.5 percent on Monday, with Wall Street poised to start the week higher as investors reassess the prospect of tightening monetary policy. A stronger-than-expected wages report last week raised the odds that the Fed will continue to take an aggressive stance but suggested the world's largest economy could cope. This week, all eyes are on the U.S. inflation report due on Wednesday. The report is expected to show a slowdown in oil prices, driven by lower gasoline costs. Meanwhile, the Senate approved a $430 billion bill to fight climate change, lower drug prices, and raise corporate taxes. The major moving averages were mixed in Friday's regular trading session, with the Dow up 0.23%, the S&P 500, and the Nasdaq Composite down 0.16% and 0.50%, respectively. STOCK MARKET SECTORS: - High: Energy, Consumer Discretionary, Communication Services, Materials, Real Estate. - Low: Information Technology, Financials, Consumer Staples, Industrials. TOP CURRENCY & COMMODITIES MARKET DRIVERS:  - CNY: The offshore yuan held steady at around 6.76 to the dollar as solid Chinese trade data offset pressure from a surprisingly strong U.S. jobs report. Data released over the weekend showed China's export growth unexpectedly accelerated in July, with the trade surplus hitting a record high. Investors are also awaiting Chinese inflation and credit data later this week to assess the state of the world's second-largest economy. Meanwhile, the yuan remains vulnerable to wild swings amid a resurgence of the domestic Covid-19 outbreak and rising tensions with the U.S. over Taiwan. CHART OF THE DAY: The FTSE MIB index was just above 22,600 on Monday, rebounding slightly from Friday's losses, with sharp gains in the tech and energy sectors offsetting losses in financial stocks as investors continued to assess central bank actions amid soaring inflation and a slowing economy. Degree of positivity. Tenaris extended its volatility, rising 1.5%, while STMicroelectronics and Montclair rebounded from Friday's slump, gaining 1% each. Meanwhile, Banco BPM and Mediobanca led losses in bank stocks, partially offsetting gains from the previous session, when strong U.S. labor data reinforced bets on an aggressive Fed.   - Italia FTSE MIB index - D1, Resistance around ~ 23 042, Support (target zone) around ~ 21627