China economic data adds to positive picture.

A bit of a data dump from China today has added to the impression that the country's economy is stabilizing. Chinese industrial production rose 9.7% on year in July vs +8.9% in June and topped consensus of 9%, while retail sales and urban investment were decent. Meanwhile, inflation stayed tame at 2.7%, which Merrill Lynch says provides room for a mini fiscal stimulus. One concern, though, is that the manufacturing sector remains mired in deflation, with PPI falling 2.3% on month.