Dave Lutz of Stifel, Nicolaus sends along the topics that he and his clients are chatting about this morning.
We summarize in bullets:
- Global trading is generally light. China’s Golden Week holiday is partly to blame. Hong Kong is also off today and tomorrow.
- PMI readings show contraction across the board. Nonetheless markets are up. Eurozone sovereign bond spreads are narrower.
- China weak, but the question is whether it was weak enough to induce more stimulus. Nothing likely until after early November Chinese leadership transition.
- Of the PMIs, only Ireland is above 50.
- The world is still waiting for Moody’s to rule on Spain.
- Xstrata agrees to merger with Glencore.
- Big Supreme Court docket coming up in the new season.
And here’s a few more straight from Michael Block of Phoenix Partners:
- Chicago PMI was awful, especially New Orders. Consensus for ISM at 10AM is for a fourth month below 50. THE BAR IS LOW.
- No Spanish bailout yet. Talk is that a new budget plan framework for EU will be presented at EU Summit on October 18-19. French protest chatter already.
- Chinese PMI below 50 for second straight month for first time since early 2009. Still waiting for more stimulus.
- Bernanke at 12:30PM today. What new tricks does he have up his sleeve? Fed Minutes Thursday will be a fun read.
- How will preannouncements in industrials, tech, etc be taken this week? HUGE TELL.