Photo: flickr / Elen Nivrae
Good morning. Here’s what you need to know.
- Asian markets surged in overnight trading, with the Nikkei up 2 per cent and the Shanghai Composite up 1.2 per cent. European markets are trading lower with the exception of the German DAX, which is up 0.3 per cent. U.S. futures are flat.
- Chinese GDP growth slowed to 7.4 per cent on the year, in line with expectations. Measures of industrial production, fixed asset investment, and retail sales all beat consensus estimates. China’s Growth Slows, But The Worst May Be Over >
- Bad loans in the Spanish banking system rose to a record high in August, according to the latest figures from the Bank of Spain. This has prompted analysts to comment that the worst case scenario considered in the Spanish bank stress tests already looks realistic.
- Spanish government bond yields fell at the latest bond auction this morning. Short-term borrowing costs were down over 50 basis points from September’s auction.
- UK retail sales surprised to the upside, posting a 2.9 per cent gain in September versus estimates of a 2.4 per cent rise. Demand for winter clothing and school uniforms led the gains.
- The two-day EU summit beginning today will focus on proposals for a euro area banking union, but will also likely include discussions regarding the Greek and Spanish bailouts as well.
- Initial jobless claims are reported in the United States at 8:30 AM ET and are expected to rise to 363K after last week’s surprise tumble to 339K. At 10:00, we get the Philly Fed manufacturing survey, which analysts expect to rise to a 0.2 reading from -1.9 last month. GET READY: We’re About To Get The Most Closely-Watched Jobless Claims Report Ever >
- Morgan Stanley and Philip Morris report earnings before the opening bell. Analysts expect earnings per share of $0.24 and $1.39, respectively. We will have Morgan Stanley earnings LIVE on Clusterstock >
- Syrian rebels have come into possession of anti-aircraft missiles for the first time since the conflict began. Some say the missiles could be a game-changer, but there is also concern that the missiles fall into the hands of extremists. Everything Could Be About To Change In Syria >
- The latest Gallup poll gave Romney six points over Obama, his biggest lead yet in the presidential race. However, yesterday’s poll doesn’t take into account Tuesday evening’s debate performance, which many called a win for Obama. New polling numbers will be released today. We will have the results LIVE on BI Politics at 1:00 PM ET >
- BONUS: Rooney Mara and Ryan Gosling were filmed slow-dancing for a scene in their upcoming movie.