The risk appetite has risen today markedly pushing the equities markets and the commodities prices up too driven by better than expected earning reports from HSBC and BNP Paribas and UK PMI manufacturing index of July which came above the market expectations of 56.7 at 58.3 revising June index up to 57.6 from 57.5 Not only was the June index revised up to 57.6 from 57.5. The market eyes should be directed now to the release of July US ISM manufacturing index which is anticipated to be to continue its declining for the fourth month in the row to 54.7 from 56.2 but after last Friday release of July Chicago PMI which unexpectedly rose to 62.3 from 59.1 in June while it was expected to be down 56.5, the market is looking optimistic that we can have better number today than what was initially estimated reducing the fear of having a double dip recession in US after the recent dovish data of US which effected negatively on the market sentiment as we have seen slow down of the consuming pace in US by new falling of US Conference Board's Consumer Confidence of July to 50.4 after a massive falling in June to 52.9.

The doubts about the consuming pace in US could temper the market sentiment yesterday again by a new dovish US Conference Board's Consumer Confidence of July which was waiting to be to come down to 52 after a massive falling in June to 52.9 to but it declined further to 50.4 in July. God Willing, We are to wait today for the Fed's Beige book for having a look at its current assessment by its next meeting which expected to have the interest rate unchanged again nearly 0% for extended period of time again next month as Ben Bernenke has highlighted in his testimony the Fed's worries about the current growth downside risks and the struggling pace performance of the labor market and our eyes will be focusing by the end of the week on the US consuming pace again with the release of July University of Michigan consuming sentiment revision which is expected to be 67.5 after the falling of the preliminary reading to 66.5 from 76.0 in June while the market was waiting for declining by just 2 figures to 74.

The markets are curiously waiting for the earning reports of the second quarter and the impact of the debt crisis in the Euro zone on them with growing prospects of growth slow down in the second half of this year in US after the recent dovish economic releases from US which could contain the market sentiment weighing negatively on the equities markets as we have seen the slide of US consumer confidence of June to 52.9 while the market was waiting for 62.9 and June US ISM manufacturing index which was expected to be 59 from 59.7 in May coming last week at 56.2. That's beside the increasing worries about the housing market performance in US which has deteriorated in May as the pending home sales have fallen by 30% while the market was waiting for decreasing by just 10% after the disappointing new home sales of May which were awaited to be 470k from 507k in April but they have shocked the market with just 300k falling by 32.7% and finally, we have returned to the losing of jobs in June by another 125k of the non-farm payroll after adding 413k in May while the market was waiting for losing just 100k.

The downside growth risks could contain the market sentiment yesterday bothering the equities markets again forcing them to dive back again yesterday after having a breathe from bullish RBA statement to some extent after its decision to keep the interest rate unchanged at 4.5% supporting these markets to correct some of its previous losses of last week but today some confidence could come back to the market again believing that with the announcement about the way of the EU waited stress test, the markets are to have a clarification about the current financial situation of the banking system in EU by the end of this month as the banks have already received its questionnaire yesterday and the market is waiting to know further from the banks itself to how far they are exposed to the unsustainable debts of the struggling small countries inside the EU and outside of it to know its right needing for further funding to sustain their financial position as the market is still worrying about this position ...