Investor's bullish expectations about economic growth, earnings growth and central bank stimulus will be tested this week

Investor's bullish expectations about economic growth, earnings growth and central bank stimulus will be tested this week. Yesterday's China data indicated the world's second largest economy is facing pressure from both weak domestic demand, and the absence of growth in global trade. Accordingly, the recent stimulus package released earlier this year already seems to be losing steam and it seems that China will struggle to meet its 7.5% growth target and can only do it through either asset bubbles and government spending, neither of which are sustainable. Meanwhile, the QE bulls in Europe are in danger of disappointment if the ECB fails to deliver more dovish rhetoric and promises of action on Thursday. Full overnight report available on the following link: (VIEW LINK)