US Indices: - Dow Jones -1.2% - S&P500 -1.3% - Nasdaq -1.5%
- Safe-haven Utilities sector is marginally higher, while the rest of the market is broadly soft. Basic Materials, Industrials, Tech, and Services are the worst performing sectors. COP and APC are leading oil majors with a 2% drop, while SLB and HAL are down 3%. In tech, HP and INTC are off by 2.5%. Cruises and travel leisure are also hit hard by Ebola scare - EXPE off by 3.2% and CCL is off by 2.6%. NRG is a particularly bright spot among utilities with a 2.3% rise.
US Fixed-Income: US Treasuries saw a solid bid across the curve, sending yields to multi-week lows. ISM Manufacturing PMI fell to 3-month lows, arresting a trend of consecutive increases. Wider macro themes of renewed Ukraine conflict, Hong Kong protests, and Ebola outbreak worries are adding to the risk-off theme.
- 2-yr: -4bps at 0.52% - 10-yr: -5bps at 2.40%; lowest since Sept 5th - 30-yr: -4bps at 3.12%; 1-month low - 2-10 spread: 1.92%
Energy: - WTI Nov crude oil contract at $90.61/brl, down sharply for the 2nd consecutive session, testing last week's lows below $90.50. The uptick from a bullish inventories report from the DOE has been fully reversed by the overall risk-off sentiment. Tepid China manufacturing PMI and Ebola-related airline weakness also cited.
Metals: - Spot Gold $1,215/oz, AM rally stopped short of the overnight highs around $1,220; still marks the largest session increase in a month. - Spot Silver $17.20/oz; moderate recovery to a session high of $17.45, largest session increase in about 3 months. - Dec Copper $3.03/lb, at the midpoint of $3.01-05 range; Downtrend remains intact.
Earnings at the close: - no major earnings
Looking ahead to Asia: - Australia Trade Balance, Building Approvals 21:30ET - Eye on Hong Kong and the deadline imposed by Occupy Central leaders for Chief Exec CY Leung to step down