Chinese Commerce Ministry spokesperson said China is open to US negotiations to resolve trade issues, while he added extreme US pressure won’t cripple Chinese Economy. (Newswires)
EU Chief Brexit Negotiator said meeting with UK opposition leaders Corbyn and his team today, while he said he continues to listen to all view. Barnier added the EU continues to work for orderly Brexit and ambitious future partnership with the UK that should include close economic relationship (Twitter)
UK Foreign Minister Hunt said he does not agree that the Chequers plan is dead, he added negotiations require two parties to engage seriously and that has not been happening. Furthermore he said Chequers is the basis of an agreement, never said we can’t negotiate individual elements. (Newswires)
Former UK Foreign Minister Johnson has called on PM May to scrap her Brexit proposals because it would leave UK “half in and half out” of the EU. Furthermore, he proposes a six-part alternative plan for Brexit. (Newswires)
The Italian government has reached agreement on 2.4% deficit to GDP target for 2019, while a 5-Star source stated the 2.4% deficit to GDP target is for each year from 2019 to 2021. Furthermore, Italy Interior Minister Salvini said tax cuts and pension reforms have been agreed and will not raise sales tax in the budget plan, while adding budget will allow for some early retirements (Newswires)
German Chancellor Merkel said she has not ruled out candidacy of ECB’s Weidmann to succeed President Draghi. In regards to Brexit, she said Britain must make its own decision on Brexit, while she added that parts of May’s proposal do work well. (Newswires)
Fed Chair Powell (Neutral) reiterates the US economy is strong, unemployment low and inflation stable, while he repeated gradual rate path is helping sustain the US economy. Furthermore, he said models suggest probability of recession in the next year or two are not elevated (Newswires)
BoE’s Haldane (Hawkish) said the appropriate policy response to a disorderly Brexit would depend on markets, demand and currency. He also added the impact of rate hikes so far have been modest and UK growing at current pace would require more hikes. Haldane also noted growth is steady around the trend rate and now the UK is at point where the output gap is close to be eliminated and can no longer afford to run the economy hot (Newswires)
ECB’s Praet (Dovish) said rates should note be raised just to cut again, he also said at this stage of the cycle, careful monitoring of the risk-taking channel of monetary policy is important, while he added incoming data continues to support our confidence that the sustained convergence of inflation to our aim will proceed. (Newswires)
European Council President Tusk said EU remains committed to the Iran nuclear deal, as long as Iran is. (Newswires)
OPEC oil shipments will dip by 400k b/d to 25.01m b/d in the 4 weeks to Oct. 13 vs. period to Sept. 15, according to data from tanker tracker Oil Movements. (Twitter)
NHc said Hurricane Rosa rapidly intensified into a major hurricane; located in the Eastern North Pacific. (Newswires)
Spokesman for Nigeria’s state oil firm said has seen no evidence that nationwide general strike has had any impact on operations
Canadian PM Trudeau tried more than once to talk to US Trump on sidelines at UN meetings, but Trump avoided Trudeau due to trade tensions. (Newswires)
Apple (AAPL) led the Dow on the news that JP Morgan sees a 23% upside in their shares and initiated the stock with an Overweight rating. Amazon (AMZN) was lifted on a price target increase at Stifel to a street high as well as on the opening of its first 4+ start retail online store in New York. Activision Blizzard (ATVI) was higher after it announced the launch of its Candy Crush Friends Saga worldwide scheduled for October. Alaska Air (ALK) was the top gainer in the SPX after announcing a daily nonstop service to El Paso, Texas scheduled for 2019 as well as an upgrade at Imperial Capital. Carnival (CCL) sunk after earnings came short of expectations, dragging its peers Royal Caribbean (RCL) Cruises and Norwegian Cruise Line (NCLH) in negative territory; Conagra (COG) also suffered losses after disappointing figures and Accenture (ACN) dipped it forecasted fiscal 2019 profits below estimates. Freeport-McMoRan (FCX) was down after signing an agreement to sell a majority stake in its Grasberg mine to Indonesia.
* SPX +0.28% at 2914, NDX +0.88% at 7630, DJI +0.21% at 26440. SECTORS: Energy +0.05%, Materials -0.98%, Industrials +0.13%, Cons Discretionary +0.54%, Cons Staples -0.20%, Healthcare +0.44%, Financials -0.33%, Tech +0.54%, Telecoms +0.80%, Utilities +0.96%.
The T-Note traded within a range, but action was being dictated by the European fixed income complex for much of the day, with sellers emerging after Bunds yields rose in European trade, with some profit-taking and dealer positioning ahead of the 7-year auction cited. Curve flattening was once again the theme, with a large block flattener in 5s30s reported which helped the long-end of the curve rise off lows. The 7s auction was lacklustre, tailing 0.9bps, and saw the highest stop-out rate since April 2010. Cover was below recent averages, and primary dealer takedown was above recent averages; in wake of the auction, the long-end continued to hold its bid. US T-note futures (Z8) settle half-a-tick higher at 118-24.