S&P 500 snaps 5-day streak as U.S. stocks finish mixed

Good morning,

- Oil Jumps on Falling Stock, Output; Gold Leaps as IMF Lowers Growth.

- US Equities: DJIA 16818.99 (+0.25%); S&P500 1981.38 (-0.29%); NASDAQ 4746.564 (-0.73%).

- Chinese FX reserves dropped 1.2% last month to $3.51 Tln. That is the 12th decline in reserves in 13 months. Stability is proving expensive.

- Risk trends not liking the absence of on-coming stimulus expansion hints in BOJ statement. $USDJPY and #Nikkei 225 down in tandem.

- $NZD, $JPY, and $AUD are expected to be the most active majors vs $USD with 1W implied volatility at 11.80, 11.23, and 11.12 respectively.

-The IMF forecast China to grow 6.8% this year and 6.3% in 2016, but believes 'hard landing' fears are overdone.

- The Bank of Japan held off on expanding stimulus on Wednesday, even as slumping exports and falling oil prices threaten its rosy projection that the economy is on track to hit its ambitious 2 per cent inflation target next year. But lingering fears of recession will keep the central bank under pressure to ease at a more crucial meeting on Oct 30, when it is expected to cut its long-term economic and price forecasts, analysts say. For now, the BOJ maintained its optimistic view that while exports and output have been hurt by slowing emerging market growth, Japan's economy continues to recover moderately.

- Fear of the markets is that contracting growth in the BRICS countries may have spillovers in the rest of the world.

- Fed's Williams: Expects markets to be effected as Fed liftoff gets closer, Says he is bullish on China. What's more, normal market volatility "does not bother me"....

- The S&P 500 snapped a five-day winning streak to close slightly lower Tuesday, as a selloff in biotechnology and health-care stocks overshadowed gains in energy and materials sectors. The Dow Jones Industrial Average managed to eke out a small gain, buoyed by a surge in DuPont Co. The S&P 500 SPX, -0.36% closed 7.13 points, or 0.4%, lower at 1,979.92, with seven of its 10 main sectors closing lower. Health-care sector led losers, falling 2.3%, while energy and materials followed rising oil prices higher.

- On Tuesday's session $USD underperformed vs. major peers with $AUD, $CHF, $NZD best spot returns at +1.26%, +0.92%, +0.88% respectively.

- Greek FM Tsakalotos: Greek bank recap must be completed quickly; growth projections for 3Q much better than expected..Greek bailout review must finish quickly; collective labor bargaining must be restored.

- The U.S. dollar slipped against a basket of major currencies on Tuesday on continued expectations that the Federal Reserve will not hike interest rates this year, while uncertainty over the outcome of a Bank of Japan meeting capped the yen's gains. Commerce Department data showing the largest expansion in the U.S. trade deficit in five months in August reinforced expectations that the Fed would delay hiking rates for the first time since 2006 until next year. A weak U.S. jobs report on Friday has also driven expectations of a later Fed rate hike.

- LDP's Yamamoto: BOJ worried that more easing may weaken yen.

- Major news for today: BoJ Press Conference, GBP PMI, USD Crude Oil Inventories, USD PMI,

Have a great day!