Market Wrap

The DJIA fell 0.5%, the S&P500 rose 0.2%, and the Nasdaq Composite Index rose 0.5%. The Eurostoxx 50 rose 0.3%. The Dollar Index edged up 0.1% to 99.87. EUR-USD fell 20 pips to 1.1520. The US 2Y yield rose 3bp to 3.60% and the 10Y yield also gained 3bp to 4.11%. The German 10Y yield rose 3bp to 2.67%. The UK 10Y yield gained 2.5bp to 4.44%. Brent crude oil prices fell 0.4% to USD64.84. OPEC+ agreed over the weekend to raise output by 137,000 barrels per day in December and to pause increases in the first quarter of next year. Gold was a tad lower to USD4,001.

The October ISM US Manufacturing PMI dropped to 48.7, below expectations, signalling eight months of contraction. Production, orders, inventories, and employment declined. Price pressures eased, but delivery slowed. Only two industries, Food, Beverage & Tobacco Products, and Transportation Equipment, expanded. Negative for USD and industrial commodities.

Germany and Eurozone manufacturing PMI stayed at 49.6 and 50.0 respectively in Oct, unchanged from its preliminary read., On the other hand, UK and US PMI improved to 49.7 (from 49.6) and 52.5 (from 52.2) respectively.

Datawatch: We have US economic data slated for release by the Census Bureau today but likely to get postponed due to the US government shutdown. These data include trade balance, JOLTS job openings, factory orders, and durable goods orders.