Minutes from the U.S. FOMC meeting earlier in the month said: 'Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.' This comment came after a poor economic data out of the world’s biggest economy, which now raises the chance of yet another round of QE.
Early in the morning data showed that China’s manufacturing activity, the HSBC Flash Purchasing Managers Index fell to a nine-month low of 47.8 in August from a reading of 49.3 in July, as new orders slumped in the face of weakening global demand. This data raise the concerns over a slowdown in the world’s second largest economy.
Meetings between Greece and key euro zone leaders will continue throughout the week, with Greece's prime minister heading to Berlin to see German Chancellor Angela Merkel on Friday and French President Francois Hollande on Saturday.
Later in the day the latest data out of the housing sector from the US is expected to go out and also the Markit Manufacturing PMI for August.
Gold it look as if every comment regarding another round of QE impact the precious metal dramatically. Late yesterday and early today the gold rally to the highest level in 16-weeks, after Wednesday’s minutes of the Federal Reserve’s August meeting indicated that the central bank may be close to implementing a third round of easing measures.