- Euro-Area Services, Manufacturing Unexpectedly Slow. Euro-area services and manufacturing output unexpectedly slowed in October as the recovery in the currency bloc struggled to gain momentum. A composite index based on a survey of purchasing managers in both industries declined to 51.5 this month from 52.2 in September, London-based Markit Economics said today. Economists had forecast the indicator would rise to 52.4, according to the median of 24 estimates in a Bloomberg News survey.
- European Stocks Advance as ABB, Daimler Gain on Earnings. European stocks advanced as companies from ABB (ABBN) Ltd. to Daimler AG posted earnings that beat estimates, while a report showed China’s manufacturing strengthened this month more than forecast. ABB climbed 5 percent after saying profit rose 10 percent amid increasing orders in China and Germany. Daimler added 3.3 percent after also saying sales of its CLA compact coupe and upgraded E-Class sedan rose. Celesio AG jumped 5.4 percent after McKesson Corp. agreed to buy the German drug wholesaler for 3.9 billion euros ($5.4 billion). Credit Suisse Group AG lost 2.8 percent after posting profit that missed analysts’ estimates. The Stoxx Europe 600 Index increased 0.4 percent to 320.38 at the close of trading in London.
- Gold Futures Advance to Three-Week High on Stimulus Speculation. Gold futures for December delivery added 1.2 percent to settle at $1,350.30 an ounce at 1:44 p.m. on the Comex in New York. Earlier, prices climbed to $1,352.30, the highest for a most-active contract since Sept. 30.
- Fed to Propose Banks Hold Ready Funds for 30-Day Credit Drought. Banks would have to hold enough easy-to-sell assets to survive a 30-day credit drought under a rule to be proposed today by the Federal Reserve that may have the greatest effect on banks with big trading operations such as JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) The demand for 30 days of liquidity is intended to satisfy global Basel III accords for strengthening the financial system. Increasing the banks’ liquid assets is meant to make them less vulnerable in a crisis like the one that struck in 2008.
- U.S. Mortgage Rates Fall to a Four-Month Low. U.S. mortgage rates fell to a four-month low after a weaker-than-expected jobs report drove investors to the safety of the government bonds that guide borrowing costs. The average rate for a 30-year fixed mortgage dropped to 4.13 percent the week ended today from 4.28 percent, Freddie Mac said in a statement. The average 15-year rate declined to 3.24 percent, from 3.33 percent.
- Consumer Confidence in U.S. Falls to Eight-Month Low: Economy. Consumer confidence sank last week to the lowest level in eight months as Americans grew more concerned the budget standoff in Washington hurt the world’s largest economy. The Bloomberg Consumer Comfort Index declined to minus 36.1 in the period ended Oct. 20, the lowest since February, from minus 34.1. The report also showed more households were pessimistic about the economy than at any time in the past year even as lawmakers approved a deal that ended the partial shutdown of federal agencies.
- BofA(BAC) Said to Cut 1,300 More Mortgage Unit Jobs Amid Slowdown. Bank of America Corp., the second-largest U.S. lender, is cutting about 1,300 more jobs in its mortgage division as the firm adjusts to lower demand, said two people with direct knowledge of the plans.
Zero Hedge:
- Baltic Dry Bear Market Index. (graph)
Reuters:
- EU may re-impose sanctions on Iran ship line despite court order. European governments have taken preliminary steps to re-impose sanctions against Iran's main cargo shipping line, potentially complicating a new diplomatic push to settle the dispute over Tehran's nuclear program.
- Merkel tells Obama: spying on friends is unacceptable. German Chancellor Angela Merkel said on Thursday she had made it clear to U.S. President Barack Obama that spying on allies is not acceptable.
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