U.S. futures were fractionally higher despite 'not so good' manufacturing PMI data out of China and Europe. Basically, global equities are continuing where they left off yesterday, still in a downward trend in a sideways channel started August 25th.
Markets are expected to open fractionally higher and may end the day higher without breaking any resistance lines.
Here is the current market situation from CNN Money
European markets are mixed today. The FTSE 100 is up 0.72% while the CAC 40 gains 0.27%. The DAX is off 0.45%.
BERLIN (Reuters) - Volkswagen is looking at ways to cut costs and boost cash flow and could sell more shares if the price of clearing up a scandal over its rigging of diesel emissions tests puts its credit rating at risk.
LONDON (Reuters) - Katherine Garrett-Cox, one of the City of London's most high profile women CEOs, is to step down from the board of Alliance Trust in an overhaul of the fund manager which has faced pressure from activist investor Elliott to make changes.
And it was going so well overnight: with the USDJPY surging as high as 120.25 overnight, before finding its prefered equilibrium spot at 120, the Yen carry was doing its centrally-planned and mandated job of supporting market... and then a Bloomberg headline yanked the carpet from underneath it:
BOJ IS SAID TO SEE LITTLE IMMEDIATE NEED FOR ADDING STIMULUS
BOJ OFFICIALS ARE SAID TO WANT CHANCE TO SEE MORE DATA
More details from Bloomberg:
Bank of Japan officials see little need for an immediate expansion of monetary stimulus and would prefer to hold off to get a clearer picture of the economic outlook, according to people familiar with their deliberations.
Board members who gather for Oct. 6-7 policy meeting want opportunity to observe further economic data and developments in financial markets at home and abroad, according to the people, who asked not to be named because talks are private
Needless to say this is a problem for liquidity-addicted algos: with the ECB last week making a solid case against more easing any time soon, all hopes were on the BOJ's October meeting to boost QE.
The BOJ, however, realized there are little incremental debt sellers that it can monetize debt from, as explained here on September 4 in "The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play", and a result suddenly there is virtually nothing propping up the USDJPY which is about 200 pips rich relative to the Nikkei.
Which is why said most important carry trade for global risk markets, the USDJPY, suddenly took a 30 pip move lower, and dragged US equity futures down with it.
(Reuters) - U.S. stock index futures started the last quarter of the year on a positive note on Thursday as weak data from China raised hopes of more stimulus measures from Beijing and investors awaited a slew of U.S. data.
BENGALURU/SYDNEY (Reuters) - The world economy lost momentum in September, with China's vast factory sector shrinking again and euro zone manufacturing growth weakening slightly, both casualties of waning global demand.
In late July we suggested that Wal-Mart may be ready to fire as many as 1,000 employees at its home office in Bentonville. Our suspicions arose from an internal memo circulated at local staffing firm Cameron Smith & Associates. Here's what it said:
"Please remember, these people are our neighbors and friends. You have a skill that will be very much in need when this goes down. You are experts in the job market and you know what it takes to get hired. This is a time for us to step up and do what we can to help."
This, as we pointed out at the time, is economics 101. When your business lives and dies by the idea of "everyday low prices" - indeed, when low prices become something of a religion, passing on rising labor costs to consumers simply isn't an option and when Wal-Mart committed earlier this year to spend around $1 billion to boost the wages of its lowest paid employees it was only a matter of time before the job cuts started rolling in.
Of course Wal-Mart tried to avoid this by squeezing the supply chain, first with requests that suppliers cut back on marketing, then with the imposition of storage fees, and finally with demands that suppliers pass along savings from th ...
LONDON (Reuters) - Glencore has told investors it is on track to cut debt and shown new data about its secretive trading unit in a fresh attempt to dispel the market worries over its finances which knocked 30 percent off its share price on Monday.
The bad economic news started with Japan's Large Manufacturing Tankan missing expectations of +13, printing at +12 while, as Goldman summarized, "outlook DIs show across-the-board deterioration in both manufacturing and non-manufacturing industries" once again bringing up the question whether the BOJ will boost QE later this month.
Then it was China's official and Caixin PMIs which as we reported, confirmed the economy remains in contraction, even if it is no longer in freefall mode. The Markit final September print was 47.2, the lowest since March 2009 while the Composite PMI was the lowest ever. And since Chinese stocks were closed for the next week, it was up to S&P futures to set the mood, which they did by soaring as soon as the disappointing PMI numbers hit:
Then it was Europe's turn, where disappointing PMI came fast and furious. The final Euro area manufacturing PMI came in at 52.0 in September, in line with the flash. Between August and September, the Euro area manufacturing PMI fell by 0.3pt from 52.3 to 52.0
On a country basis, German manufacturing PMI fell on the month (53.3 to 52.3), as did the Italian (53.8 to 52.7) and Spanish prints (53.2 to 51.7). Ironically the only rebound was in what many suggest is core Europe's worst performing economy, France, where the manufacturing PMI strengthened from 48.3 to 50.6.
According to Goldman, "The PMI breakdown across subcomponents in September was weak. Both manufacturing output and employment fell, by 0.4pt and 0.5pt respectively. The order-to-stock differ ...
LONDON (Reuters) - World stocks and commodities got 2015's final leg off to a solid start on Thursday after a bruising third quarter, as surveys of Chinese factory activity proved sounder than many global investors had feared.
TOKYO (Reuters) - Toshiba Corp may lay off staff in its underperforming home appliances, TV and PC businesses and seek a partner for its nuclear operations to overhaul the company after a $1.3 billion accounting scandal, its chief executive said on Thursday.
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