Equity markets were quiet, while currency and commodity markets were a bit more active.
- Asian Equity Markets Are Subdued – The largest move in either direction for the major indices was the 0.9% decline in Indian equity markets. Japan, Hong Kong, South Korea, and Australia all closed nearly unchanged.
- Weak Australian Jobs Report – The Aussie Dollar is lower by nearly 1% vs. the USD after the Australian jobs report came in at -10k vs. the expected +10k. The potential for further rate cuts led to a bid for Aussie stocks, as the Australian equity index registered a minor new intraday high (which is a new 5 year high), though it only ended the day up 0.16%.
- Gold Breaks Below $1350/oz – That was an important resistance level in July and August that had not been breached ever since the August 15 break higher. Heavy volume selling around 2:50 am EDT hit stops placed around 1350, and the front month gold futures contract is now trading around 1342, down 1.5%.
- Weak Italian Industrial Production – The month-over-month figure came in at -1.1% vs. the expected 0.3% increase. The Euro Stoxx 50 made a new 2013 closing high yesterday, but Italy has remained weaker, and is the weakest major European equity market this morning (though no index in Europe is far from unchanged). Italian 10 year yield at 4.53 still indicates sovereign bond market calm.
- Top Four Congressional Leaders Meet Today – Discussion will center on financing the government after funding runs out on Sept. 30 and raising the debt ceiling (likely to be hit at some point in October). Expect increasing headlines in the next month as back and forth in the House and Senate intensifies.