Markets Overnight: Quiet Ahead of Weekend Negotiations

by Enis October 4, 2013 5:58 am • Commentary

Overnight price action in SPX futures had its tightest range of the week, and most Asian and European equity indices moved less than 1%.

  1. Asian Indices Mostly Lower, Japan Again Weakest – No major economic data was released.  Asian indices were generally unchanged or slightly lower, with Japan’s Nikkei index closing down almost 1%, right at its 50 day moving average.  China’s domestic market was closed.
  2. European Stocks Mostly Higher, Led by Italy and Financials – European indices opened around unchanged, and have marched higher since the open, led by Italy and the financials.  Italian and Spanish 10 year yields are near 3 year lows, spurred lower this week by the resolution of the Italian political impasse.  SX7E, the European financials index, hit its highest level in 2 years.
  3. Commodities and Dollar Mixed, Treasuries Slightly Lower – Oil and copper were a touch higher, while gold was a touch lower.  The Euro and Pound moved lower during the European session, while the Australian dollar was strong.  Treasuries were a bit lower along with other developed market bond markets.
  4. Twitter files for IPO, company valued around $13 billion – The company detailed more than 200 million users, and $250 million of annual revenue in its filing.  The company has not earned money since inception, and has raised over $750 million from private investors.
  5. No Payrolls Release Today, FOMC Minutes on Oct. 9th – The government shutdown has pushed back the payrolls release that would normally come out today.  The biggest economic data event of next week is going to be the release of the FOMC Minutes on Wednesday afternoon, which will be closely parsed to gauge the debate within the Fed about the potential for tapering later this year (though the fiscal negotiations make a 2013 taper unlikely).