Observations + Charts
Europe extending gains while US futures are rebounding modestly.
China and other Asian markets closed for Golden Week holiday.
China official manufacturing PMI showed factory activity returned to expansion for first time since March.
Contrasted somewhat with Caixin PMI, which showed manufacturing slowed (though remained in expansion).
BOJ Tankan show stronger-than-expected rise in Japan manufacturer and non-manufacturer sentiment.
BOJ members discussed conditions and possible timing of stimulus exit in September Summary of Opinions.
Banks driving Nikkei/Topix's rebound amid the higher rate backdrop. JGB 10Y rate hits fresh 10 year high in a bear steepening move.
Elsewhere- SK exports declined at a slower pace in September as semiconductor shipments shrunk at slowest pace in 12 months.
RBA expected to leave cash rate unch at 4.10% at Tuesday's policy meeting.
Europe mostly higher, 3rd d in a row in low volms -30% vs 20d avg.
EZ final manufacturing PMI unch from flash at 2 month low of 43.4.
EU cyclicals up for a 4th session in a row while EU value back trading higher (+15% since June low).
EU luxury basket up for the 3rd d since BAML positive note.
Sector wise.. Basic Resources, Real Estate (German RE better) & Consumers leading so far while HealthCare and Media lagging.
DXY +15bp. Brent +40bp while US nat gas +40bps and EU nat gas +560bp. Copper -50bp. Bitcoin +440bp to ~$28.3K while gold -60bp.
US futures higher w/ESZ3 +17.00, HIWZ3 +97.00, RTYZ3 +6.80 and NQZ3 +91.50.