Overnight and Into the Open

Overnight we saw ES get off to an early start, gaining ground well ahead of the European open.

As for Europe, the UK saw their CPI number come in well below expectations and the lowest since November of 2009 at 2.4%.

The German ZEW Survey came in negative at 6 month lows, but not as bad as expected. The survey still supports expectations of a 1.5% GDP forecast for the German economy this year.

None of this seemed to move ES overnight, the only thing that seems to have moved it was the positive divergences seen in the Euro as the Euro gained ground jut about in sync with ES.

In the US, we had CPI at 8:30 coming in at consensus

Released On 7/17/2012 8:30:00 AM For Jun, 2012

Prior Consensus Consensus Range Actual CPI - M/M change -0.3 % 0.0 % -0.4 % to 0.1 % 0.0 % CPI - Y/Y change 1.7 % 1.7 % CPI less food & energy 0.2 % 0.2 % 0.1 % to 0.2 % 0.2 % CPI less food & energy - Y/Y change 2.3 % 2.2 % We also had Industrial Production at 9:15 Released On 7/17/2012 9:15:00 AM For Jun, 2012 Prior Consensus Consensus Range Actual Production - M/M change -0.1 % 0.3 % -0.1 % to 0.5 % 0.4 % Capacity Utilization Rate - Level 79.0 % 79.2 % 78.9 % to 79.4 % 78.9 % Manufacturing - M/M -0.4 % 0.2 % 0.1 % to 0.5 % 0.7 % The good news is that manufacturing had a better-than-expected month in June. But the big question mark remains whether demand is slowing as reflected in softer numbers for new orders in many manufacturing surveys for June. Niether of these events seemed to move ES in to the open. The major event today is Bernie's semi-annual Congressional testimony starting at 10 a.m. (now), I'll be listening and watching market reaction so I may be a little slow on the emails today. Here's ES and Euro-Dollar, note the correlation there.  ES last night, the European open at the green arrow.  EU data doesn't move ES, the gap is faded on the open.... The first red arrow is the close at 4 p.m. EDT yesterday, the 9 p.m. move up in Euro-Dollar and the dip on the open. Updates coming....