Morning 10-31 redux

Gap and Go has held For European bourses, as Earnings from Facebook, French Companies L’Oréal and Sanofi enticed buyers to step in and hold the gap overnight. Cac + 2%, Dax and Spain’s IBEX +1.2%, Italys MIB though little changed. Nasdaq +1.18%,Spooz +.6%.Overnight market’s did not trade higher in a straight line as gyrations caused by Weak Italian Employment data and Firm EZ CPI were evident.. Bank of Japan left current monetary policy unchanged as expected, But tweaked the monthly purchase plan of 1 and 5 year bonds. The Yuan trading up a bit vs Dollar as the overnight repo rate surged the most in 4 years (month end stuff) Stock markets look good today but looking at the Monthly performance the Global MSCI stock index headed for worst month in 6 years.

 

(BB)Stronger stocks=Weaker Bunds and treasuries, a Risk on Theme so far today. Bunds -20 ticks, BTPs +38 all European sovereign Spreads vs Bunds a bit tighter today. Dollar index steady to lower after touching new YTD high yesterday. API reported a bigger build in Oil then expected, both gasoline and Distillates drew down more than forecast, Oil rallied on data. Tight range in copper sitting little changed. Disappointing China PMI numbers weighing a bit on metals.lead -1.8%..Gold -.5% and Silver -1.18%

A few interesting Notes from Bloomberg
The trade war is taking its toll on China’s economy. The official manufacturing PMI slowed more than forecast this month and new export orders slid to the lowest since 2016. The gauge fell to 50.2 from 50.8 in September, approaching a contraction. The services gauge also slipped. The data showed a broad deceleration, with growth unlikely to bottom soon, Bloomberg Economics said.

 

The Bank of Japan bought 867.6 billion yen ($7.7 billion) of exchange-traded funds tracking the nation’s shares in the month through Oct. 29, the biggest amount since the BOJ began buying the investments in 2010. That’s almost double September’s total after the BOJ slowed purchases the previous month following a tweak to market operations in late July. Japan’s Topix index is headed for its worst month since the height of the global financial crisis in 2008.

Calendar:

7:30 Employment cost Index top tier data point

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