Morning 10-31

Majority of Stock Indices lower overnight. All European Bourses are steady to lower. Most EM Indices closed lower as well. Bunds and treasuries steady to higher. We see some Weakness in Italy as 10 year Btps are lower resulting in 4 Bps move higher in yields due to latest polls showing majority of Voters will reject Prime Minister Renzi Referendum. Weak German Retail sales causing some concern in Europe. Latest US election poll show that new FBI investigation is having an impact on Clintons numbers as her lead is now 1 Point over trump according to ABC .Also 1/3 of likely voters said “rekindled scandal meant they probably wouldn’t back her”-Bloomberg. What is surprising is that The Mexican peso is higher by .4% this move is telling less concerns about FBI scandal, for now. Plenty of Event risk this week starting with BOJ and Australia Rate decision tonight. Both expected to leave rates unchanged. FOMC on Wednesday, Bank of England on Thursday, Payrolls Friday and Month End activity today. No one in a hurry to make any “Bets “today so thus sideways markets. South African Rand+2% as Charges against her Finance Minister will be dropped. Dollar +20, Euro -33 and Yen down 30 ticks. Japanese retail sales and Industrial Production missed expectations.
Oil is trading heavy, again as production cuts/freeze discussions are not going smoothly. Oil down .6% and trading at a 1 month low. Base metals are higher as Steel was +1.5%, and aluminum +1.9% in china. Same story as last week, Hope that Chinese demand picks up.
A few US economic Reports today maybe some focus on PCE core but for most part month end activities and Any Clinton headlines will drive the action.

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