Eurozone Factory Growth Near 3-Year High

News Event

From Trading Economics: The final IHS/Markit Eurozone Manufacturing PMI increased to 53.5 in October of 2016, higher than a preliminary reading of 53.3 and a final of 52.6 in September. It is the highest figure since January of 2014 as production, new orders, new export orders and employment all rose at a faster pace while inflationary pressures accelerated. Among countries, higher growth in the manufacturing sector was led by Netherlands and Germany. Manufacturing PMI in the Euro Area averaged 50.08 from 2007 until 2016, reaching an all time high of 59 in February of 2011 and a record low of 33.50 in February of 2009.

Market Snap

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index fell to a two-week low on Wednesday as worries over the U.S. presidential election prompted a recoil in global markets, with a stronger yen adding to the cautious mood. The Nikkei fell 1.8 percent to 17,134.68, the lowest closing price since Oct. 19. The broader Topix fell 1.8 percent to 1,368.44 and the JPX-Nikkei Index 400 shed 1.8 percent to 12,259.70. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 1.2 percent to seven-week lows. The Shanghai Composite Index eased 0.14 percent, while Hong Kong's Hang Seng Index fell 1.28 percent. The Australian index, S&P/ASX 200, fell 1.52 percent.

In Currency Markets the dollar fell on Wednesday as the U.S. presidential election increasingly looked too close to call, jangling investors' nerves and fuelling demand for perceived havens such as the Japanese yen. The euro was up 0.1 percent at $1.1065, near the peak of $1.1069 seen the previous day, its highest since Oct. 11. The dollar extended overnight losses and was down 0.4 percent at 103.700 yen. The Mexican currency retreated to as low as 19.317 pesos per dollar, its weakest since Oct. 7. The Australian dollar, sensitive to shifts in risk appetite, was down 0.4 percent at $0.7624. The dollar index was little changed at 97.672, hovering just above a two-week trough of 97.640 plumbed the previous day.

In Commodities Markets crude oil prices fell for a fourth day on Wednesday, as jittery investors awaited official U.S. stockpile figures later in the day after industry data showed a surprise build in inventories, underlining a persistent global glut. The API said crude stockpiles rose by 9.3 million barrels in the week to Oct. 28. U.S. WTI crude fell 0.9 percent, to $46.27. On Tuesday it fell 19 cents to $46.67. Brent crude was down 32 cents at $47.82, near a one-month low of $47.72 hit in the prior session. Spot gold was up 0.33 percent at $1,292.09 an ounce. Among other precious metals, silver was up about 0.5 percent at $18.41 per ounce. Platinum fell 0.4 percent to $986.49 per ounce and palladium was down about 0.1 percent at $631.10.

In US Equity Markets stocks fell on Tuesday, with the S&P 500 closing at the lowest level since July 7, amid growing concern over the impending U.S. presidential election and prospects for higher U.S. interest rates. The S&P 500 lost 0.68 percent, to 2,111.72 and the Nasdaq Composite fell 0.69 percent, to 5,153.58. In earnings news, Pfizer  fell 2 percent after the drugmaker trimmed its profit forecast. Tronc fell 12.4 percent after Gannett,  the publisher of USA Today, abandoned plans to buy the publisher of the Chicago Tribune and the Los Angeles Times. Gannett fell 2.3 percent. U.S.-listed shares of Valeant Pharmaceuticals rose 33.7 percent after a report that the drugmaker is in talks to sell its stomach-drug business.

In Bond Markets U.S. Treasury prices ended higher on Tuesday after stocks fell to their lowest levels since July, increasing demand for safe-haven assets as uncertainty over next week's U.S. presidential election weighed on investor sentiment. Benchmark 10-year notes ended up 4/32 in price to yield 1.83 percent. Ten-year note yields rose as high as 1.879 percent earlier on Tuesday, the highest level since May 31.

Source: Institute of Trading and Portfolio Management