Today is Columbus Day, and for those looking to take a day off will be disappointed to find out that the stock markets are open. U.S. stock index futures pointed to a higher open on Monday morning, with the Dow, SPY and SP 500 futures each up +0.5%. Trading volumes were expected to remain low.
Here is the current market situation from CNN Money
European markets are mixed today. The FTSE 100 is up 0.39% while the DAX gains 0.16%. The CAC 40 is off 0.13%.
LONDON (Reuters) - The Mexican peso and U.S. stock futures rose as investors saw less chance of Republican nominee Donald Trump winning next month's presidential election, while sterling was under pressure after Friday's "flash crash" in the British currency.
SEOUL (Reuters) - Samsung Electronics Co Ltd has suspended production of its flagship Galaxy Note 7 smartphones, a source said on Monday, after reports of fires in replacement devices added to the tech giant's worst ever recall crisis.
FRANKFURT/LONDON (Reuters) - Deutsche Bank shares fell more than 3 percent on Monday after Chief Executive John Cryan failed to secure a speedy deal with the U.S. Department of Justice (DoJ) over the weekend over the misselling of mortgage-backed securities.
WASHINGTON (Reuters) - Central banks' repeated warnings that there are limits to what they can do to bolster the sputtering world economy could suggest they are about to pull back and pass the baton to governments.
BOSTON(Reuters) - A group of nuns and other religiously-affiliated investors have lost faith in embattled Wells Fargo & Co and filed a shareholder resolution calling on the bank to report on the root causes of a fake accounts scandal that led to a $190 million settlement struck with regulators last month.
NEW YORK (Reuters) - After five years of litigation, the U.S. Supreme Court will hear arguments on Tuesday in the bitter patent dispute between the world's two top smartphone manufacturers over the amount Samsung should pay Apple for copying the iPhone's distinctive look.
NEW YORK (Reuters) - Wall Street stock index futures were little changed throughout Sunday's highly contentious presidential debate, indicating that markets continue to view that Democrat Hillary Clinton holds an edge in the Nov. 8 election against her Republican rival, Donald Trump.
LONDON (Reuters) - Oil prices rose around one percent on Monday, approaching one-year highs, as speculators raised bets that oil prices would gain on the back of a landmark agreement among OPEC producers to rein in record output levels.
The gold trading Commitment of Traders (COT) report, released Friday, shows the peculiarly timed gold sell off and much needed wash out of speculative longs out of the gold futures market last week sets gold up for lower prices, prior to moving higher again.
The timing of the sudden sell off, when Chinese gold markets and the Shanghai Gold Exchange (SGE) were closed for the five days of the Chinese Golden Week, has rightly raised a lot of eyebrows. China is now a powerful force in the gold market, and is influencing global gold prices through the physical gold exchange, the Shanghai Gold Exchange and indeed the Shanghai Futures Exchange. China also has four gold-backed ETFs that are growing in popularity.
Concerns that the sell off was manipulative in nature are again widespread. The sell off was once again another purely paper or electronic futures market sell off with little or no liquidations of actual gold bullion and no important gold data or news or wider market data. Indeed the sell off came at a time of very robust physical demand - especially in mainland Europe - due to concerns ...
In the latest scandal to emerge involving Deutsche Bank, earlier today the FT reported that German's largest lender was allowed to cheat, pardon was given "special treatment" by the ECB in the July stress tests. As part of the July stress tests results, which "promised to restore faith in Europe's banks by assessing all of their finances in the same way" Deutsche Bank's result was boosted by a "special concession" agreed to by Mario Draghi: DB's results included the $4 billion in proceeds from selling its stake in Chinese lender Hua Xia even though the deal had not been done by the end of 2015, the official cut-off point for transactions to be included.
While the Hua Xia sale was agreed in December 2015, it has still not been completed and now faces a delay after missing a regulatory deadline last month, though the bank is still confident of completion this year.
As the FT notes, the Hua Xia treatment was disclosed in a footnote to Deutsche's stress test results, and adds that "none of the other 50 banks in the stress tests had similar footnotes, even though several also had deals agreed but not completed at the end of 2015."
As disclosed in the central bank's summer stress test, Deutsche's common equity tier one capital fell to 7.8% after it was "subjected to the stress tests' imagined doomsday scenario of fines, low interest rates and low economic growth." However, without the Hua Xia boost, the ratio would have been 7.4%, a level comfortably above regulatory minimums. Why the speal treatment? Because the higher published result helped reassure investors who were growing increasingly nervy about the bank's capital adequacy.
Other banks were not as lucky:
In one case, Spanish lender Caixabank completed the 2.65bn ...
While the entire nation was transfixed on last night's latest, and most scandalous yet "debate", in which there was little actual debating and a lot of talking points and character assassination attempts, index futures were little changed throughout Sunday's 90 minutes event, suggesting that no clear winner had emerged on either side.
While the two candidates focused on each other's personal failings for much of the early part of the debate, investors said there was not enough in terms of policy substance in Sunday's debate to change the market's perception of the direction of the race according to Reuters. "I don't think it changed people's opinions in the investing community that Clinton is more likely to win, as she was before the debate, certainly after Friday," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
"The market declared tonight's debate a draw and has no more clue after debate than before, at least not in watching the S&P futures. Once again the debate was great theater, but did not give the market any insight," said JJ Kinahan, chief market strategist at TD Ameritrade. "Despite the night's civil ending, it was hard to glean much information, as a good part of the debate was simply a name-calling fest."
Steven Englander, global head of G10 currency strategy at CitiFX in New York, said: "Both Trump and Clinton supporters expected that emerging market currencies and U.S. equities would go down and the VIX would go up if Trump were to win and vice versa if Clinton wins," he added. And indeed, as noted last night, the kneejerk reaction of the most accurate, real-time proxy of debate performance, the Mexian Peso, showed that once the debate started, the mood shifted mostly in Trump's favor, leading to modest losses after this weekend's Trump Tape fiasco.
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