The summer doldrums begin early. The US dollar is little changed against most of the major currencies. Bond yields are mostly one-two basis points lower, and equity markets are mixed but with a downside bias. Oil prices slump more than 2% on Tuesday and again on Wednesday.  This is weighing on bond yields and equities. Â
European shares are lower for the third day and the Dow Jones Stoxx 600, off 0.5%, is dragged by a 1.5% drop in the energy sector. The MSCI Asia Pacific Index rose nearly 0.4% as the other markets offset the losses in Japan and China. The Nikkei slipped 0.15%, with a 0.75% drop in energy. The Shanghai Composite surrendered half of the gains scored yesterday, ostensibly in response to the MSCI decision to include A-shares for the first time in its emerging market equity index beginning near the middle of next year. Â
Fresh market moving news remains light. The US and Canada report data that provide some headline risk. The US reports weekly initial jobless claims that cover the week that the national non-farm payrolls survey is conducted. As of last week, weekly jobless claims were at three-week lows. Contrary to claims in some quarters that the US is headed or already in a recession, the Leading Economic Indicators. There is no sign that it is signaling anything like a recession.  monthly reading was negative three times last year. The last one being in August.The LEI rose on average 0.2 each month in 2016.It is averaging 0.4% this year. Â
Canada reports April retail sales. The headline is unlikely to repeat the 0.7% gain in March.Auto sales will likely drag it lower. The higher gasoline prices may boost the ex-auto figure, but the volume of retail sales may have fallen. The Canadian dollar has pared half of the gains scored in the wake of the more hawkish talk from senior BoC officials. US dollar sellers have emerged in front of that retracement near CAD1.3350. Support is pegged near CAD1.3380. Tomorrow, Canada reports May CPI figures and the headline rate is expected to ease.Â
