Morning Call For Monday, October 2

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.17%) this morning are up +0.16% at a new record nearest-futures high on signs of strength in Chinese manufacturing activity that is positive for global economic growth after the China Sep manufacturing PMI unexpectedly rose +0.7 to 52.4, the fastest pace of expansion in 5-1/3 years. European stocks fell back from a 4-month high and are down -0.05% on rising tensions in Spain after a violence-marred vote in Catalonia spurred the regional government there to press for independence from Spain. Asian stocks settled mostly higher: Japan +0.22%, Taiwan +0.78%, Australia +0.84%, Singapore +1.31%. Hong Long, China, South Korea and India all closed for holiday. Japanese stocks closed higher on increased economic optimism after the Japan Q3 Tankan showed business conditions among large manufacturers rose to the highest in 10-years.

The dollar index (DXY00 +0.51%) is up +0.52%. EUR/USD (^EURUSD) is down -0.57%. USD/JPY (^USDJPY) is up +0.24%.

Dec 10-year T-note prices (ZNZ17 -0.09%) are down -3 ticks at a new 2-1/2 month low.

The China Sep manufacturing PMI unexpectedly rose +0.7 to 52.4, stronger than expectations of -0.1 to 51.6 and the fastest pace of expansion in 5-1/3 years.

The Eurozone Sep Markit manufacturing PMI was revised downward to 58.1 from the originally reported 58.2, still the highest since the data series began in 2014.

The Japan Q3 Tankan large manufacturing business condition rose +5 to 22, stronger than expectations of +1 to 18 and a 10-year high.

ECB Governing Council member Georghadji said a pickup in inflation is "still largely dependent on the ECB's accommodative monetary policy stance and that only a sustained adjustment in the path of inflation would warrant the gradual withdrawal of our exceptional degree of monetary policy accommodation."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) revised-Sep U.S. Markit manufacturing (expected unchanged at 53.0, prelim-Sep +0.2 to 53.0), (2) Sep ISM U.S. manufacturing index (expected -0.8 to 58.0, Aug +2.5 to 58.8), (3) Aug construction spending (expected +0.4%, Jul -0.6% m/m), (4) Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an event hosted by the El Paso branch of the Dallas Fed, (5) USDA weekly grain export inspections, (6) USDA crop conditions and progress report.

Notable Russell 1000 earnings reports today include: Whiting Petroleum (consensus -$0.20).

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Disclosure: None.

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