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Dave Lutz of Stifel, Nicolaus emails with the topics that he is talking with his clients about this morning.Here we summarize in bullets:
- The day started with risk off, but have come back in part due to the surprise Aussie rate cut and more hopes for Spain aid.
- Commodities are higher. Lumber is surging.
- Spain maybe going to request a bailout soon.
- Der Spiegel article on how the ECB’s new bond buying program may be illegal.
- Aussie rate cut.
- Senate leaders talking fiscal cliff deal.
- Moody’s thinks the report on the health of Spanish banks.
- Big time court decision coming up on whether Pennsylvania’s severe voter ID laws will be in place on election day.
- BofA report on how hedge funds are massively lagging the broader market.
And from Michael Block at Phoenix Partners, a few more observations:
- Yesterday Germany was going to delay the bailout. Today they are not and we are back higher.
- Allegedly Rajoy will ask for the bailout over the weekend. Why wouldn’t he wait until after October 21 at this point?
- NYT – Senate working on a deal to eliminate the cliff and sequester issue. $4 trillion deficit reduction over 10 years.
- ISM was much better and that mattered for a few hours.
- Central banking now all about not taking the punchbowl away.