Evening Headlines
Bloomberg:
- Here Are Five Tailwinds Set to Boost the Global Market Rally. (video) Financial markets are dancing again to the risk-on beat, with the latest upswing in global manufacturing the latest reason to boogie. With the threat of higher interest rates, geopolitical shocks, and rich valuations, for now, seemingly powerless to unhinge stocks and bonds from their bullish foundations, there could be even more pain in store for naysayers. Here are five forces that may fan the flames of the risk rally. This is the season for investors to be jolly. Discretionary macro hedge-fund managers and active mutual-fund managers are likely to chase markets since they are flat or have lagged benchmarks for the first three quarters, according to JPMorgan Chase & Co. Add outflows spurred by the boom in passive investing -- estimated to hit $254 billion this year, matching 2008 levels -- and active equity mutual funds are under strong pressure to chase performance, the bank reckons.
- Why an Enigmatic Chinese Company Just Spent $9 Billion on a Stake in Rosneft. While there’s a risk of crude sliding below $30 as demand is displaced by alternative energy, it’ll still be needed for making petrochemicals, said the head of the enigmatic Chinese company that last month bought a $9 billion stake in Rosneft Oil Co.
- India's Central Bank Seen Holding Rates Lower as Slowdown Bites. India’s central bank is expected to keep its benchmark rate at a seven-year low this week amid slowing growth in Asia’s third-largest economy. With inflation climbing fast toward the Reserve Bank of India’s medium term target, the Federal Reserve starting to shrink its balance sheet and growing speculation the government may loosen purse strings to bolster the economy, the room for lowering rates in the coming months is narrowing.
- Stocks Add Gains, Dollar Climbs on Economic Cheer. Strong factory data and the prospect for American tax cuts boosted confidence in the global economy, lifting the dollar and emboldening bulls who drove U.S. equities to fresh record highs and pushed up shares in Asia. The Bloomberg dollar index was near strongest since mid-August, and the S&P 500 Index closed at an all-time high after data showed U.S. manufacturing expanded at the fastest pace in 13 years. That comes on the back of an unexpectedly strong factory gauge out of China over the weekend and the Bank of Japan’s quarterly Tankan survey showing the country’s big manufacturers are the most confident in a decade. Japanese shares rose, Aussie stocks gave back some yesterday’s gains and oil fell closer to $50 a barrel. Japan’s Topix index added 0.3 percent. Australia’s S&P/ASX 200 Index slid 0.3 percent. Hang Seng futures were up 0.2 percent with traders returning after a long weekend. Indian markets also reopen after a holiday, while those in China and South Korea remain shut.
Wall Street Journal:
- Shooting Suspect Was a Gambler, Property Investor; Brother Is ‘Horrified’. Stephen Paddock, accused of killing at least 59 people, lived in several retirement communities where he kept to himself.
Fox News:
Business Insider:
Night Trading
Earnings of Note
Company/Estimate
Afternoon:
Night Trading
- Asian equity indices are -.25% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 80.5 -1.25 basis points.
- Asia Pacific Sovereign CDS Index 18.75 -.25 basis point.
- Bloomberg Emerging Markets Currency Index 73.39 -.14%.
- S&P 500 futures +.01%.
- NASDAQ 100 futures +.04%.
Earnings of Note
Company/Estimate
- (AZZ)/.44
- (LEN)/1.01
- (PAYX)/.60
Afternoon:
- Total Vehicle Sales for September are estimated to rise to 17.1M versus 16.0M in August.
Upcoming Splits
- (ISRG) 3-for-1
Other Potential Market Movers
- The Eurozone PPI report, Australian Central Bank decision, weekly US retail sales reports, (F) Strategic Update, BofA Building/Infrastructure Conference and the (INTU) investor day could also impact trading today.
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