ASIA: Asian markets hit a 2-year high, but Japan falls. China’s manufacturing activity expanded in September from August, with the manufacturing PMI rising to 53.8. China’s services activity is even more robust, with the services PMI rising to 61.7 in September.
Japanese financial shares took it on the chin, on concerns that Japanese banks will need more capital in order to meet stricter capital requirements.
EUROPE: Is slumping. European manufacturing growth slowed in September, with the PMI dropping to 53.7 in September. China’s premier Wen Jiabao has said that China supports the euro and will buy Greek government bonds. Mega banks UBS and Credit Suisse could be required to double their capital levels under new Basel III regulations.
MACRO: Gold is near $1,320, oil is at $83.38.
U.S. FUTURES: Are falling. Watch for factory orders and pending home sales data at 10:00 AM ET.