Risk sentiment remained broadly positive overnight, but yesterday's enthusiasm has definitely been dampened.  

Japan's Nikkei & TOPIX indices both fell at the open, but subsequently pared losses.

U.S. Futures slightly up

European markets set to open pretty much unchanged...

Overnight news and data

The China recovery continues.


China's industrial engine gathers speed, consumers open wallets in boost to recovery (RTRS)

China’s industrial output accelerated the most in eight months in August, while retail sales grew for the first time this year, suggesting the economic recovery is gathering pace as demand starts to improve more broadly from the coronavirus crisis.
Industrial output growth quickened to 5.6% in August from a year earlier, the fastest gain in eight months, data from the National Statistics Bureau showed on Tuesday. Analysts polled by Reuters had expected a 5.1% rise from 4.8% in July.
Retail sales also rose 0.5% on-year, snapping a seven-month downturn and beating analysts’ forecast for zero growth. In July, sales dropped 1.1%.

Trinh with some interesting observations;

The Yuan just keeps on strengthening.  

Down under, the RBA minutes struck a market-positive tone.

The AUD strongly rallied after minutes were released.

The minutes noted that a weaker currency would support the economic recovery.

Talking down currencies used to work.

We are in a brand new era where central bank actions are required to move markets.  

Nothing new or unexpected in there.

No further rate cuts.

Rate rises a long way off.

Continued commitmment to support the recovery.

1 September 2020 | Minutes of the Monetary Policy Meeting of the Board
Minutes of the monetary policy meeting of the Reserve Bank Board for 1 September 2020
Reserve Bank of Australia

The House Price Index fell by 1.8% in Q2 (but still 6.2% higher over the year)

Commsec have a good breakdown on that here.

Looking ahead, this morning we have UK employment data, final inflation readings for France & Italy,  plus the Zew economic sentiment index.

This afternoon's U.S. data will likely have minimal impact ahead of the FOMC tomorrow.

And if you want to get your head around the retail options craze, this is bound to be a good listen!