In the Markets

* European calendar lean today, will focus on US data; Italy closed for holiday

* US August Empire State index expected to moderate to -2.0 (median -3.1) from -4.9

* US calendar includes July production, August Michigan sentiment, & Fedspeak by Evans

* Canadian calendar awaits June manufacturing shipments, forecast +1.0% (median 1.1%)

* Asian equities mixed as resource stocks fell, financials rose, growth outlook uncertain

* USD buoyed by the broad commodity market weakness; AUD & NZD soft

* China January-July fixed investment up 27.3% (median 26.9%); rounds out solid data month

* NZ retail sales jumped 0.9% in June, above median; Q2 sales volume -1.5% q/q

* FED’s Stern: Economy constrained until crisis passes, inflation should abate

* Treasury yields found floor after equity rebound, following volatility on hot CPI

* ARS settlement: major US banks nearing a deal on auction rate securities

* Gold fell below $800 for first time since December as USD strengthens; silver down 11%

* RJ/CRB index slumped 1.5% to 387 with crude, gold weakness; 380 key support

* NYMEX crude sub-$114 on signs of weakening global growth, demand destruction

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