Greek banks will have to tap bondholders for bail-in cash, Moody's warns

Good morning,

Greek banks will have to tap bondholders for bail-in cash, Moody's warns

- EUR ECB's Draghi: ECB asset purchase proceeding smoothly; ECB willing to act to maintain monetary accommodation. What’s more, ECB's monetary accommodation to be examined again in Dec.

- EUR EU's Dombrovskis: Greece can return to growth quickly amid reforms. European recovery likely at ‘’moderate pace".

- $GOLD and safe haven assets plunge amid global stock rally.

- US Equities: DJIA 17962.18 (+0.75%); S&P500 2114.36 (+0.49%); NASDAQ 5157.93 (+0.60%).

- EUR Greek FM Tsakalotos: Talks on Greek debt relief must start before Christmas.

- Good service sector and composite PMI figures for Japan and China. That said, latter's composite, is still below 50.0(growth).

- WTI Crude Oil price punched higher toward three-week highs today. There was speculation by U.S. refineries that crude demand was increasing alongside a trend of lower production caused a clean bid in Crude. The rise was in stark contrast to other commodities, namely metals that ended the day in the red by 1% or greater. However, the 3.8% move higher in crude is aligning with stabilization in economic data, which is beginning to chip away at the fear of supply remaining on the market due to falling economic data. Technicians would point to the break below the yellow boxed support zone as an invalidation of the uptrend and the argument that we’re heading higher. Of course, it’s easy to point to the SPX500 that has risen near new highs after the aggressive sell-off on August 24th. If Oil goes the way of equities and we continue to hold above the $43 per barrel price, the case for a retest of the 200-day moving average near $51 per barrel becomes increasingly strong followed by the 100% Fibonacci extension near the top of the blue price channel near $55 per barrel. Additionally, the relative strength Index on the bottom of the chart shows there is likely still room to run higher.

- Asian stocks rallied early Wednesday, thanks to a positive lead from Wall Street and firmer crude oil prices. Overnight, a fifth straight day of gains for energy counters alongside a rise in tech majors helped propel major U.S. averages. The Dow Jones Industrial Average and S&P 500 ended up 0.5 and 0.3 percent respectively, while the tech-heavy Nasdaq Composite gained 0.4 percent.

- The unemployment rate increased to 6.0 percent in the September 2015 quarter (up from 5.9 percent), Statistics New Zealand said today. At the same time, 11,000 fewer people were employed than in the June quarter. This was the first quarterly fall in employment in three years. “Until recently, the labor market has been keeping pace with New Zealand's population growth, but in the past three months this has changed,” labor market and households statistics manager Diane Ramsay said. “This quarter also had the largest increase in the number of people outside the labor force since the March 2009 quarter,” Ms Ramsay said.

- Caixin China Composite PMI™ data (which covers both manufacturing and services) pointed to a broad stabilization of Chinese business activity in October. This was highlighted by the Caixin Composite Output Index posting only fractionally below the neutral 50.0 value at 49.9, up from September’s 80 - month low of 48.0. October survey data signaled that a stronger increase in service sector business activity was offset by a further decline in manufacturing output. That said, goods producers recorded the slowest rate of contraction for four months. Meanwhile, services activity rose at a quicker rate, one that was the most pronounced since July.

- Major news for today: US ADP, US ISM, Spanish PMI.

Have a great day!