At 4 a.m. EDT, markets will receive Italian retail sales for June, which are expected to decline 0.1% month-over-month following a 0.2% increase in May. Annual retail sales are expected to contract 0.5% year-over-year, reversing the previous month's 0.5% increase.

At 5 a.m. EDT, markets will receive preliminary Italian CPI for August. The consensus expects headline inflation to move up 0.5% month-over-month following a similar rise the previous month. Annual CPI is expected at 4.0% compared to 4.1% previously. HICP is expected to decline 0.2% month-over-month after falling 0.6% in July, and annual HICP is expected to remain at 4.0%.

Also at 5 a.m. EDT, Eurostat will release the euro zone unemployment rate for July. Economists expect no change to the 7.3% rate reported in June. Eurostat will also release the euro zone's Consumer Price Index for August. The consensus expects a decline to 4.0% from 4.1% previously.

Simultaneously, the euro zone will publish its economic sentiment indexes for August. The business climate index is expected to decline to -0.3 from -0.21 previously. The consumer confidence index is expected to remain at -20. The economic confidence index is forecast to pull back to 89.3 from 89.5. The industry confidence index is expected to slide to -9 from -8 in July. The services indicator is expected to remain at 1.

At 8:30 a.m. EDT, Statistics Canada will release the industrial product and raw material price indexes for July. Economists expect a 0.7% month-over-month increase in IPPI following June's 1.3% gain. Raw material prices are expected to rise 0.2% on the month after picking up 4.4% previously.

Simultaneously, markets will receive Canadian GDP statistics for June and the second quarter of 2008. The consensus expects that GDP advanced 0.1% month-over-month in June, reversing a previous 0.1% decline. Second-quarter GDP is projected to have expanded 0.6% after contracting 0.3% in the first quarter.

At the same time, the U.S. Department of Commerce will release its personal income and spending report for July. Personal spending is forecast to rise 0.2% on the month after increasing 0.6% previously, and personal income is expected to have contracted 0.2% month-over-month following a 0.1% increase in June. Core PCE is expected to have risen 0.3% month-over-month, matching June's increase, and is forecast to be up 2.4% on the year, just a touch above the previous month's 2.3% increase. The PCE deflator is expected at 4.5% compared to June's 4.1% level.

At 9:45 a.m. EDT, markets will receive the ISM Chicago purchasing managers index for August, which is expected to decline to a reading of 50.0 from the 50.8 figure previously recorded.

At 10 a.m. EDT, Reuters and the University of Michigan will release a final reading for its U.S. consumer sentiment index for August. Economists expect a slight upward revision to a reading of 62.0 from the preliminary 61.7.

Also at 10 a.m. EDT, The U.S. Institute for Supply Management will release its manufacturing index for Milwaukee. The consensus expects no change to the previous month's reading of 44.0.

4:00 IT Retail Sales (M/M) (SA) June Exp: -0.1% Prior: +0.2%

4:00 IT Retail Sales (Y/Y) June Exp: -0.5% Prior: +0.5%

4:00 EU WTO Holds Dispute Settlement Body Meeting

4:00 AS ECB's Klaus Liebscher Holds Closing Press Conference in Vienna

5:00 IT CPI (NIC incl. tobacco) (M/M) August Preliminary Exp: +0.5% Prior: +0.5%

5:00 IT CPI (NIC incl. tobacco) (Y/Y) August Preliminary Exp: +4.0% Prior: +4.1%

5:00 IT CPI - EU Harmonized (M/M) August Preliminary Exp: -0.2% Prior: -0.6%

5:00 IT CPI - EU Harmonized (Y/Y) August Preliminary Exp: +4.0% Prior: +4.0%

5:00 EU Euro Zone Unemployment Rate July Exp: +7.3% Prior: +7.3%

5:00 EU Euro Zone CPI Estimate (Y/Y) August Exp: +4.0% Prior: +4.1%

5:00 EU Business Climate Indicator August Exp: -0.3 Prior: -0.21

5:00 EU Euro-Zone Consumer Confidence August Exp: -20 Prior: -20

5:00 EU Euro-Zone Economic Confidence August Exp: 89.3 Prior: 89.5

5:00 EU Euro-Zone Industrial Confidence August Exp: -9 Prior: -8

5:00 EU Euro-Zone Services Confidence August Exp: 1 Prior: 1

8:30 CA Industrial Product Price (M/M) July Exp: +0.7% Prior: +1.3%

8:30 CA Raw Materials Price Index (M/M) July Exp: +0.2% Prior: +4.4%

8:30 CA Gross Domestic Product (M/M) June Exp: +0.1% Prior: -0.1%

8:30 CA Quarterly GDP Annualized Q2 Exp: +0.6% Prior: -0.3%

8:30 US Personal Income July Exp: -0.2% Prior: +0.1%

8:30 US Personal Spending July Exp: +0.2% Prior: +0.6%

8:30 US PCE Deflator (Y/Y) July Exp: +4.5% Prior: +4.1%

8:30 US PCE Core (M/M) July Exp: +0.3% Prior: +0.3%

8:30 US PCE Core (Y/Y) July Exp: +2.4% Prior: +2.3%

9:45 US Chicago Purchasing Manager August Exp: 50.0 Prior: 50.8

10:00 US U. of Michigan/Reuters Confidence August Final Exp: 62.0 Prior: 61.7

10:00 US NAPM-Milwaukee August Exp: 44 Prior: 44

By Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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