On Wall Street Trading Desks, This Is What They're Talking About Right Now

trading desk

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.


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