US Market closed lower with Small caps leading lower, China's Finance Minsiter Lou Jiwei poured cold water on hope for new stimulus yesterday...in line also with comments from Japanese authorities regarding next tax hike...Basic materials traded lower & pushed energy lower (-5.6% in Sept), consumer staples (-0.2%) and telecom services (-0.1%) displayed relative strength, volume were in lines with recent average @ 680mil shares...VIX @ 13.6 +13.05%...one of the FOMC's most dovish voices Kocherlakota said the Fed should adopt a more specific "inflation-targeting" price objective, reiterating policy makers should be very careful in removing stimulus. Kocherlakota also noted it was better to err on the side of higher inflation to secure recovery in employment. Treasury Sec Lew announced the govt will take more concrete steps against inversion tax-avoidance deals by companies(see below)...US After Hours SUPN +7.3%, ASNA -12.5%, ALCS -7.0% fol. earnings/guidance....China HSBC flash manufacturing PMI, financials rallied after a local press report that banks are considering an adjustment to mortgage policy...Nikkei -0.71% Hang Seng -0.015 Shanghai +0.84%
Eur$ 1.2852 S&P +0.05% EuroStoxx +0.03% FTSE +0.10% Dax -0.04% SMI -0.01%
Macro
- HSBC China Sept. Flash Manufacturing PMI 50.5; Est 50
- U.S. Treasury Sec. Jack Lew Unveils Plan to Limit Inversions (Prohibition on "hopscotch" loans, limit on "spinversions", make it more difficult to relinquish control of their foreign subsidiaries, wouldn't retroactive, only applies to deals closed yesterday or after {NSN NCBOSV6VDKHT <go>}
Keep an eye on :
- AGN US : Allergan in ‘Advanced Talks’ on All-Cash Deal for Salix (SLXP US): WSJ
- BNP FP : BNP Paribas Chairman Baudouin Prot to Leave This Week: Le Figaro
- CABK SM : Caixabank, Sabadell Could Move If Catalonia Independent: Mundo
- CEQ NO : Marine Harvest Considering Rival Bid for Cermaq, DN Reports
- 330 HK : Esprit Surges Most Since 2012 After Net Income Beats Estimates (FY Net Income HK$210m; Est. HK$151.1m)
- ESS PL : Fosun Intl to Offer Up to 451m Euros for Espirito Santo Saude, €4.72 per share
- 3389 HK : Hengdeli -2.9%
- HLF US :
Herbalife: FBN's Gasparino tweeting that sources say Icahn has not sold any of his HLF stake
- ML FP : Michelin 3% Sales Volume Increase Target Harder to Hit: Echos
- RXL FP : Ray Investment to Sell 20.9m Rexel Shrs (7,1% of Capital) @ E15,35/share, 3,28% discount vs close (JPM, SG & Rothschild)
- REP SM : Sacyr to sell Repsol Shares to repay debt - Expansion
- STAN LN : Standard Chartered Sees More Loan Impairment Amid China Slowdown
- 700 HK : Tencent Falls to Lowest Since June, Leading Losses in MSCI China
- TIT IM : Telecom Italia Plans IPO of Italy Towers Unit in 2015: Sole
- UCG IM : UniCredit Said Near Deal to Combine Pioneer W/ Santander: FT