by Calculated Risk on 8/15/2011 12:47:00 AM

There will be a meeting of German chancellor Angela Merkel and French president Nicholas Sarkozy on Tuesday. There were some more rumors of a Eurobond this weekend, but according to the Financial Times that has been ruled out for now: Germany and France rule out eurobonds. Another meeting is not a good sign ...

The NY Times discusses the slowing European economies: Setbacks May Push Europe Into a New Downturn

On Tuesday, economists expect a report on euro area economic activity to show that gross domestic product slowed to 0.3 percent in the second quarter, from 0.8 percent in the first three months of the year.

And the NY Times discusses the false rumor last week about funding problems at Société Générale: Source Sought for False Story on French Bank. Pretty amusing story - it seems the rumor might have started with a fictional story in Le Monde (that was clearly labeled fiction).

And from the WSJ: Japan's Economy Shrinks but Beats Expectations

... Japan's economy continues to rebound from the devastating March 11 earthquake and tsunami faster than anticipated. The government reported that real Gross Domestic Product shrank 1.3% in annualized, seasonally adjusted terms in the second quarter. The outcome beat a 2.7% contraction [forecast].

The Asian markets are green tonight with the Nikkei up over 1%. The Hang Seng is up over 2%.

From CNBC: Pre-Market Data and Bloomberg futures: the S&P 500 is up about 7 points, and Dow futures are up about 70 points.

Oil: WTI futures are up to $85 and Brent is up to $108.

Yesterday:
• Summary for Week Ending August 12th
• Schedule for Week of August 14th