- (PL) Poland Sept Core Inflation M/M: 0.0% v 0.0%e; Y/Y: % v 1.9%e
- (MX) Mexico Aug Retail Sales: 4.8% v 3.4%e
- US trading has been a bit choppy this morning as volumes remain below average and the VIX index heads higher. Caterpillar's downbeat quarterly report put some pressure on US indices this morning, although shares of CAT are back in positive territory in midmorning trade. Note that the VIX popped out to its highest level in more than six weeks. In eurocrisis news, a German parliament member suggested that Greece would get an extended aid program with revised conditions.
EUR/USD was unable to muster any momentum to trade above 1.3070, although dealers are apparently not targeting potential sell stops below the 1.30 handle. USD/JPY remained below the 80 handle with dealers noting that large option structures lie just ahead of the level. WTI crude has dropped below the $90 handle, testing two-week lows.
- Caterpillar cut its FY12 forecast for the second time this year in its Q3 report and offered a downbeat look at its initial view of FY13 revenue. Executives warned that lower production and temporary shutdowns would continue until demand rebounded. In regards to 2013, Caterpillar is not expecting rapid growth or a global recession but is taking a pragmatic view. The US business is picking up, and on CNBC Cat's CEO said that China is on the edge of something of a recovery. Shares of Caterpillar had dropped into the red before the open, and then traded back into positive territory in early trading.
- In other earnings, apparel name VFC is down more than 3% after some of the firm's US sales numbers came in negative and revenue narrowly missed expectations. However VFC's margins were up on a y/y basis, the firm's profits on an adjusted basis met estimates and the company raised FY12 earnings guidance. Shares of Advance Auto Parts are down more than 3% this morning after the firm missed EPS estimates in its Q3 report and cut FY12 guidance. Same-store sales were negative. AAP is down 4%. Peabody Energy shocked analysts by beating expectations and not cutting its FY12 outlook to meet diminishing estimates, sending shares of BTU up 12% as of the first 30 minutes of trade.
- The chances that Canada would approve Cnooc's bid to acquire Nexen seemed to have diminished: late on Friday, the Canadian government rejected the Petronas-Progress Energy deal on a preliminary basis.
The government warned that the deal would not provide the "net benefit" for the country required by Canada's foreign investment laws. Some analysts warned that the decision bodes ill for Cnooc, while others pointed out that while both Cnooc and Petronas are state-owned, Cnooc at least is more transparent as it is publically traded, and Canada has a foreign investment pact with China. Petronas has appealed the decision. In other deal news, BP and Rosneft outlined a complicated plan for BP to sell Rosneft a 12.84% of stake in its TNK-BP jv and for BP to take a 20% stake in Rosneft. The total deal is valued around $55B.
- (AR) Argentina Oct Consumer Confidence: No est v 42.27 prior
- 11:00 (US) Fed to buy$1.75-2.25B in notes
- 12:00 (EU) ECB member Nowotny
- 12:30 (US) Fed's Pianalto
- 14:00 (UK) Chancellor Osborne gives speaker's Lecture at Westminster
- 21:00 (US) Third and final US Presidential Debate in Florida