Economic Data

- (RU) Russia Oct Producer Prices M/M: -1.6% v +1.0%e; Y/Y: 8.8% v 11.5%e

- (IN) India Forex Reserves w/e Nov 8th: $293.6B v $294.3B prior

- (CA) Canada Sept Intl Securities Transaction: C$13.9B v C$6.9B prior

- (US) Sept Total Net TIC Flows: $4.7B v $50.0Be; Net Long-term TIC Flows: $3.3B v $50.0Be

- (MX) Mexico Q3 GDP Q/Q: 0.5% v 0.7%e; Y/Y: 3.3% v 3.6%e

- (MX) Mexico Sept Global Economic Indicator: 1.3% v 3.2%e

- (US) Oct Industrial Production: -0.4% v +0.2%e; Capacity Utilization: 77.8% v 78.3%e; Manufacturing Production: -0.9% v 0.2%e

Fixed Income:

- (UK) DMO sold total £2.5B in 1-month, 3-month and 6-month Bills

- US stocks immediately came under pressure after the open as selling in the Nasdaq weighed on markets overall. Risk appetite appears to be drying up ahead the highly anticipated meeting between US President Obama and Congressional leaders at the White House. The topic is the fiscal cliff and speculation is swirling as the year-end deadline rapidly approaches. Latest press reports indicate the Administration is in advanced talks on a plan to replace the sequester portion of the cliff, which would essentially push major deficit reduction talks into 2013. October US industrial production data was weak, but once again much of it is being attributed to Hurricane Sandy. The US Dollar index is benefiting from risk aversion flows rising 0.4%. Crude prices remain a bit elevated trading near $87 as reports continue to stream out of Israel indicating rising tensions surrounding Gaza. US Treasury prices are marginally higher with benchmark yield holding not far from 2-month lows.

- Third quarter earnings reports are adding to the relative weakness seen in the NASDAQ. Dell is off 7% Q3 revenue missed consensus expectations. Q4 and FY13 guidance also disappointed. Sears Holding has declined more than 15% following Q3 results that saw SSS decline by 1.6%. Management noted particular shortfalls in in categories like Grocery, Household and Consumer Electronics. Shares of Sina Corp have fallen roughly 13%. Q3 gross margins declined and Q4 guidance was below analyst forecasts.

- The Euro slipped below 1.27 as weak US stock markets weigh on traders' minds. Cable also come under some pressure and remains near multi month lows, trading just above 1.5825. Yen weakness continues to aid Japanese stocks, helping the Nikkei to another 2% gain. The Japan cabinet as expected cut their economic assessment for the 4th straight month sending the USD/JPY back towards levels not seen since this spring.


Looking Ahead

***All times listed for economic events are denominated in Eastern Standard Time (Add 5 hours for GMT equivalent)

- 11:00 (US) Fed To Purchase $4.25-5.25B in Notes

- 11:15 (EU) EU President Van Rompuy in Vienna

- 14:00 (AR) Argentina Sept Economic Activity Index M/M: No est v 0.2% prior; Y/Y: 1.7%e v 1.4% prior - 15:45 (US) Fed's Lockhart speaks in Charlottesville, VA

- 16:00 (CO) Colombia Sept Trade Balance: -$100Me v -$305.4M prior; Imports CIF: no est v $5.2B prior

- 20:30 (CN) China Oct Property Prices