- European stocks fell and the dollar strengthened as a new set of disappointing data from the eurozone and China highlighted the US economy's relative resilience.
- The US dollar gained up to 0.5% against its G10 peers, reaching its highest level since March. Treasuries fell on the first day of trading following the holiday on Monday. Europe's STOXX 600 fell 0.2% after paring a 0.8% drop, and S&P 500 futures pointed to a decline at the open on Wall Street.
- According to an industry survey, China's services sector grew at the slowest rate this year in August, adding to evidence that the economic recovery is stalling and dampening earlier optimism about government stimulus. In Europe, the composite purchasing managers' index fell short of expectations, contracting for the third month in a row.
- Given recession fears and above-target inflation, the European Central Bank, which meets next week, is in a quandary over interest rates.
- ECB Survey: inflation expectations for three years ahead rise to 2.4% from 2.3%.
- World Bank in talks to double Turkey exposure to $35 billion. They're working on $18 bln in new funding, which will be mostly provided to the private sector.
