US data was mixed overnight

US data was mixed overnight, with the empire manufacturing survey posting a very weak result, and the NAHB housing index printing another cycle high. The Aug empire survey was all around disappointing with a big miss on the headline (-14.92 vs. est. 4.50) and details that were just as soft. 

"Our US strategists point out that this survey has had a weak correlation with the ISM index though, and for manufacturing sentiment they put more value on the Philly Fed survey (out this Thurs)," notes RBC Capital Markets.

The Aug NAHB sentiment index was in line with expectations for another cycle high (at 61), and with all housing data so constructive recently, Q3 is setting up to be another solid quarter for the sector. The other US news overnight is that Robert Kaplan has been announced as the new Dallas Fed President (beginning Sep. 8th), although he will not be a voter until 2017.