Economic Data
(EU) Euro Zone Sept Advance CPI Estimate Y/Y: 0.3% V 0.3%e; CPI Core Y/Y: 0.7% V 0.9%e(CA) Canada July GDP M/M: 0.0% V 0.3%e; Y/Y: 2.5% V 2.8%e
(US) July S&P/Case-Shiller 20 City M/M: -0.50% V 0.0e; Y/Y: 6.75% V 7.4%e; Home Price Index: 173.34 V 174.45e
(US) Sept Chicago Purchasing Manager: 60.5 V 62.0e
(EU) Eurostat revises today's earlier Euro Zone Sept Advance CPI Core (ex-energy, unprocessed food) estimate higher from 0.7% to 0.8%
US stocks markets opened under some modest pressure and quickly moved to session lows within the first hour of trade. US bond markets were recouping early losses as well, as safe haven flows sent money into bonds and gold. It appears headlines out of Russia were the major culprit. Reports circulated that Central bank had discussed options for capital controls to offset increasing outflows. The Ruble traded below of the Russia Central Bank (CBR) 44.40 bottom of the floating trading corridor which only enhanced the consternation. Ultimately reports citing the Russian Fin Ministry denied that they were considering capital controls and sentiment has improved.
All three of the major US indices are in the green, up 0.25% or more, and bond prices are marginally lower. The US 10-year yield remains pinned around the 2.5% level. WTI is under some pressure down 1.5% and or the first time in a while it is underperforming Brent.
Equity news has overall been pretty constructive led by Ebay's decision to finally spin off PayPal. Other large cap tech names tied to activist investors have rallied including shares of Yahoo, EMC and HPQ. Separately JNJ agreed to acquire Alios BioPharma for $1.75B cash as the good times keep on rolling for M&A.
PIMCO's $3.1B Total Return ETF formerly managed by Bill Gross is said to have seen $446M in one-day outflows (record 12.5% of shares)
The Euro remains under pressure from the low core CPI print early in the session. It did bounce more than 40 pips from fresh 2+ year lows after news filtered out that Eurostat revised higher the unrounded figures.
Looking Ahead
- 11:00 (IT) Italy Stats Agency (Istat) updates Economic Forecasts- 11:30 (US) Treasury to sell 4-Week Bills
- 12:00 (CO) Colombia Aug National Unemployment Rate: No est v 9.3% prior; Urban Unemployment Rate: No est v 9.9% prior
- 13:30 (UK) BoE's Miles
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