JPMorgan’s Morning Recap

JPMorgan’s morning recap said equity markets are subdued, with the main focus is on the September economic data — manufacturing PMIs were very strong in Asia, especially China, while the Eurozone number was about in line. The Street is modeling 53 and 58 for the US Markit Manufacturing PMI at 9:45 am ET and 58 for the US manufacturing ISM at 10 am, JPM said.

Asian trading was slow due to several markets being closed for holidays — Hong Kong, mainland China, Korea, and India were all closed. Of the markets that were open in Asia, performance was generally decent: TPX -0.07%, NKY +0.22%, Taiwan TAIEX +0.78%, and Australia +0.84%. Tech stocks did very well in Taiwan (TSMC +1.85%, Catcher +5.1%, Nanya Tech +5.1%, Largan +1.49%, etc.).

The main Eurozone indices are flat-to-up (SX5E flat, SXXP up ~30bp). Basic resources, tech, and healthcare are leading on the upside while banks, real estate, telecoms, and utilities are lagging. Spain’s IBEX is down >1% and lagging behind the rest of Europe following the events in Catalonia while the EUR is down ~50-60 basis points and Spanish 10Y sovereign yields are up ~7 points. Despite these moves markets globally, especially in the US, aren’t evincing much anxiety or interest in Catalonia, JPM said.

Treasury yields are creeping higher (10Y yields up ~1.5 basis point) and the DXY rally extends (it is up ~50 points so far this morning). US S&P futures are up ~2-3 points. A tragic shooting in Las Vegas claimed the lives 50 people and injured more than 100 others although this isn’t having a large effect on trading.

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