European markets somewhat muted overnight.FTSE fell 9 points...

European markets somewhat muted overnight.

FTSE fell 9 points (.13%), the DAX rose 35 points (.21%) and the CAC rose 24 points (.33%).

BoE, ECB and US Fed are holding monthly meetings this week (US on Wednesday and BoE and ECB on Thursday). US CPI data comes out on Tuesday (US time).

US markets have largely factored in that the US Fed will hold rates at their current level.

In the US, the DOW rose 157 points (.43%), the NBI rose 25 points (.64%), the NASDAQ Composite rose 28 points (.2%) and the Russell small cap index rose 2 points (.15%).

Data out from China shows a slowing economy that has moved into a deflationary cycle. ASX may be affected as commodity prices soften because of reduced demand.

Oil prices dipped - Brent crude at US$75.

US announced that it will buy 3 mil barrels of oil for its strategic reserve. This and the slowing Chinese economy is pointing to future drops in demand.

Gold price fell to US$1980.

US 10 year bond yield 4.24%.

Interesting comment from a BlackRock strategist that it is time to move away from cash and invest in equities as the best time to invest is in periods of interest rate pauses. This may mean a better time for investing in the stock markets over the next six months.