China is closed through Wednesday for a holiday. Asian stocks were mostly higher with the Nikkei 225 up +1.58%.
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Eurozone August retail sales were unchanged, and up +2.3% y/y. September Markit composite PMI was revised lower to 53.6, but still indicates expansion. October Sentix investor confidence fell more than expected to the lowest level in 9 months. 10-yr. Bund yields rose to 0.565% and the DAX added 2.74%
September’s ISM Services came in at 56.9, below the expected 58.0. Follow through from Friday’s U.S. rally around the globe provided additional support to U.S. equities this morning, probably on lowered expectations of Fed tightening this year. 10-Year Note yields rose back near 2.05% and the US$ followed. At the same time, 90-Day Treasury Bills were sold with a yield of “0”, the lowest yield ever reached. Gold still managed a small gain to $1,137.60 and crude rallied again to close at $46.26.
After a slightly wobbly start last night, equities began to move higher and rose steadily through the close. Volume was somewhat lighter than it has been recently, and volatility fell below the long-run average near 20. By the close, markets had racked up solid and broad-based gains.