China’s Flash Manufacturing PMI results came in with a result of 47.7 early Wednesday via HSBC. Chinese data continues to show that its economic conditions are growing worse. thus far Asian bourses have largely shrugged off the data and turned in mixed results as the Nikkei has declined slightly and the Hang Seng has gained. The JPY has lost a bit of value today and the AUD has also traded lower. Gold is up slightly and as of this writing the precious metal is near 1341.00 per ounce. China’s economy continues to signal warning signs. Its core export destinations remain challenged via global consumers who are not able to open their wallets as freely as they would like.

PMI data will be released from Europe shortly. Germany and France will get their Flash Manufacturing & Services marks, along with the broad numbers for Europe. Both the German and French Manufacturing readings are expected to show slight improvements, but remain in recessionary modes. The EUR continues to trade near its short-term highs. The U.K. will be fairly quiet today with only the CBI Industrial Order Expectations on the schedule and its forecasted result is minus -12. The main story from the U.K. will remain the birth of the royal baby. And as much as we would like to smirk at the notion, the birth will actually help a U.K. economy that remains troubled as a glut of souvenirs are sold to mark the event to a hungry public.

The U.S. will publish New Home Sales statistics today, but it will not garner much attention as investors keep their attention on earnings. Wall Street turned in mixed results yesterday reflecting the rather muddled accounting presented via the corporate front. Among companies that will present their quarterly reports today are Boeing, Bancorp, Caterpillar, Delta, Facebook, and Ford along with many others.

We mention Ford on purpose today, this because the situation for the city of Detroit remains completely unresolved regarding its attempt to file for bankruptcy. Detroit is wildly in debt and its problems have been long known. Bad fiscal policy, poor urban planning, and corruption are only a few of the ills that plague the city. The problem for the U.S. is that Detroit is not the only city that is facing severe debt. While the States was able to offer a bailout for the automobile manufacturers during the last crisis it remains questionable how Detroit’s problems will be solved. The municipal bond saga appears to be growing in the U.S. and at some point investors will become more than disgruntled and cities will suffer because of it. The story of Detroit has remained somewhat under the radar and has not captured the hearts (and fear) of analysts who may be overlooking the domino like effect that could develop if things go badly for the city and potential fellow travelers like Chicago, Philadelphia, and others.

Tomorrow the German Ifo Business Climate, the U.K. Preliminary GDP, and the U.S. Core Durable Goods Orders will be released. And for those seeking to depress themselves the Spanish Unemployment Rate will also be presented.

Global equities continue to have a party like atmosphere in the summer sun. In the short-term forex has seen range trading among the major currencies, but central banks are certain to make themselves known come September when policy comes under greater scrutiny and because of this – volatility is certain to be seen again.