Germany Trade Surplus Widens in August

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From Trading Economics: Germany posted an EUR 20.0 billion trade surplus in August of 2016, up from EUR 15.22 billion reported a year earlier. The figure was in line with market consensus, as exports rose more than imports. Year-on-year, sales went up 9.8 percent to EUR 96.5 billion while imports increased by 5.3 percent to EUR 76.5 billion. In July 2016, trade surplus stood at EUR 19.5 billion. On a seasonally adjusted basis, exports rose 5.4 percent while imports grew by 3.0 percent from the previous month.

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In Asian Equity Markets, a holiday in Tokyo limited the reaction in equities and MSCI's broadest index of Asia-Pacific shares outside Japan was up a slight 0.1 percent. The Shanghai Composite Index firmed 1.2 percent as markets there returned from a long holiday. Thailand stocks fell 2.9 percent after the palace said in a statement that 88-year-old King Bhumibol Adulyadej's health was in an unstable condition. The Australian stocks gained 0.15 percent.

In Currency Markets the Mexican peso rose on Monday as markets trimmed the chance of a victory by Republican nominee Donald Trump in his U.S. presidential bid after his campaign was rocked by crisis following revelations he had mad vulgar comments about women. The Mexican peso rose about 2 percent to 18.91 to the U.S. dollar at one point in early Asian trade and held on to the bulk of its gains after the conclusion of a second presidential debate between Trump and Democrat Hillary Clinton. Against the yen, the dollar edged up 0.1 percent to 102.97. Sterling fell 0.2 percent to $1.2400. The Canadian dollar rose around 0.4 percent to C$1.3254 to the U.S. dollar, edging away from Friday's low of C$1.3315, its lowest level since mid-March

In Commodities Markets oil prices fell on Monday over doubts that an OPEC-led plan to cut output would rein in a global oversupply that has dogged markets for over two years. Brent crude futures were trading at $51.46 per barrel, down 0.91 percent, from their last settlement. U.S. West Texas Intermediate futures were down 0.98 percent, at $49.32 a barrel. Spot gold was up 0.6 percent at $1,263.48 an ounce. U.S. gold futures rose more than 1 percent to $1,265.30 an ounce. Among other precious metals, silver was up 1.2 percent at $17.72. Platinum edged 0.5 percent higher at $969.60, having touched a low of $946.40 an ounce on Friday, its lowest since April 7. Palladium snapped a five-session fall gaining 1.6 percent at $675.80.

In US Equity Markets stocks fell on Friday as a fall in the British pound injected unwanted volatility to financial markets, while a weaker-than-expected jobs report was not enough to derail expectations for a rate hike from the Federal Reserve before the end of the year. The Dow Jones industrial average fell 0.15 percent, to 18,240.49, the S&P 500 lost 0.33 percent, to 2,153.74 and the Nasdaq Composite fell 0.27 percent, to 5,292.41. A near 9 percent decline in shares of Honeywell was the biggest drag on the S&P, a day after the aero parts supplier lowered the upper end of its 2016 sales and profit forecast. Among other heavy losers on Friday, chemical company PPG fell 8.3 percent to $93.73 after forecasting a third-quarter loss.

In Bond Markets U.S. Treasuries ended little changed on Friday after data showed that U.S. employment growth unexpectedly slowed in September but was stronger in August than initially reported, and traders kept bets that the Federal Reserve is likely to raise rates in December. Benchmark 10-year notes rose 2/32 in price to yield 1.74 percent. Earlier the yield rose as high as 1.77 percent, the highest since June 3. Nonfarm payrolls rose by 156,000 jobs in September, missing economists' expectations of 175,000. Job gains for August were revised up to 167,000 from an initially reported 151,000.

Source: Institute of Trading and Portfolio Management