Germany Business Confidence At 2-Year High

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From Trading Economics: The Ifo Business Climate Index for Germany climbed to 109.5 in September 2016 from an upwardly revised 106.3 in the previous month, way above market expectations of 106.4. It was the highest reading since June 2014, as the mood among manufacturers, wholesalers, retailers and constructors improved. The survey of future expectations went up to 104.5 from 100.1 in August and the current conditions index rose to 114.7 from 112.9. Business Confidence in Germany averaged 101.85 from 1991 until 2016, reaching an all time high of 115.40 in February of 2011 and a record low of 84.60 in December of 2008. Business Confidence in Germany is reported by the IFO Institute.

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In Asian Equity Markets stocks began the week under a cloud on Monday after losses on Wall Street, and as investors' attention turned from central banks to American politics ahead of the first U.S. presidential debate. MSCI's broadest index of Asia-Pacific stocks outside Japan extended early losses and was down 0.7 percent by midday. The Nikkei fell 0.5 percent to 16,674.67 in mid-morning trade. The broader Topix fell 0.6 percent to 1,341.49 and the JPX-Nikkei Index 400 declined 0.6 percent to 12,027.28. The Shanghai Composite Index fell 0.59 percent, while Hong Kong's Hang Seng Index lost 0.66 percent. The Australian index, S&P/ASX 200, eased 0.23 percent.

In Currency Markets the dollar wobbled against the yen and euro on Monday, cautiously held in a narrow range ahead of the impending first debate between U.S. presidential candidates that could determine the currency's near-term direction. The dollar was down 0.1 percent at 100.860 yen. The euro rose 0.1 percent to $1.1234, adding to Friday's modest gains made after the release of relatively upbeat euro zone flash composite purchasing managers' index. Sterling crawled up 0.1 percent to $1.2984, posting a small bounce after falling 0.9 percent on Friday. The Australian dollar was last down 0.1 percent at $0.7613. The Canadian dollar was steady at C$1.3172 to the dollar after sliding sharply on Friday from a peak around C$1.3000.

In Commodities Markets crude prices rebounded on Monday after Algeria's energy minister said the day before that all options were possible for an oil output cut or freeze at this week's informal meeting of OPEC producers.  Brent crude futures had climbed 39 cents to $46.28 a barrel after settling down 3.7 percent, at the previous close. The benchmark advanced 0.3 percent last week. U.S. West Texas Intermediate crude futures rose 32 cents to $44.80 a barrel after falling 4 percent, in the previous session. U.S. crude gained 3 percent last week. Spot gold was down 0.3 percent to $1,332.88 an ounce and silver was down 0.7 percent at $19.52. Platinum was down 1.4 percent at $1,036.50. Palladium fell over 1 percent to $692.50.

In US Equity Markets stocks retreated on Friday as lower oil prices weighed on energy shares and Facebook and Apple declined, but major indexes still posted gains for the week. The Dow Jones industrial average fell 0.71 percent, to 18,261.52, the S&P 500 lost 0.57 percent, to 2,164.7 and the Nasdaq Composite fell 0.63 percent, to 5,305.75. Nine of 11 major S&P sectors ended lower. The tech sector fell 1 percent, with Apple shares down 1.7 percent on concerns about iPhone sales.  Twitter shares rose 21 percent on reports that the microblogging company was exploring selling itself. Endo International shares jumped 15 percent after the drugmaker announced a new chief executive.

In Bond Markets U.S. Treasury prices rose on Friday with benchmark yields hitting two-week lows as a result of safe-haven demand for bonds due to losses in Wall Street stocks. U.S. benchmark 10-year Treasury notes were up 4/32 in price for a yield of 1.618 percent, down over 1 basis point from Thursday. On the week, the 10-year yield fell 8 basis points.

Source: Institute of Trading and Portfolio Management