Weakness on the international scene is weighing on US equity markets with stocks down moderately to start. Chinese economic data continues to look anemic with corporate profits in the country falling 8% in the last reporting period. Europe has its own set of problems with the auto cheating scandal spilling over to Audi. In addition, Spain is dealing with the restive Catalonia province, where separatists took control of the governing body in local elections. Catalonia has long had a large and vocal contingent seeking an independent country in a separation from Spain. That would have a huge effect on the European Union. Domestic news is light this morning. Inflation numbers look well under control while consumer spending seems to be picking up. Merger and acquisition activity is providing some lift to markets, but not enough to overcome the negatives in international news. Gold and oil are both in decline with the US dollar showing strength as investors seek safety.
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