October Opens with Mixed Markets as Oil and Treasury Yields Climb

October opens with global stock markets mixed as investors prepare for further waves of economic reports today and tomorrow. Improved quarterly business survey results gave Japanese equities a boost overnight, while European markets have struggled despite stronger Manufacturing PMI readings. Crude Oil prices are climbing again, with Brent Crude regaining $100.00/bbl, alongside a continued rise in Treasury yields.

Japan’s Tankan Large Manufacturing Index increased to 24 from 22 last quarter, helping lift the Nikkei 3.3%. The Hang Seng is closed for holidays for the remainder of the week. European Manufacturing PMI reports generally came in above the 50 threshold separating expansion from contraction, exceeding Street expectations and improving from last month. The DAX is steady, while the FTSE is down 0.8%. US futures are mixed, with NASDAQ futures up 0.5% and Dow futures steady.

Crude Oil is up 1.4%, holding above $90.00/bbl, while Brent Crude is up 1.2%, trading above $100.00/bbl. Gasoline is up 0.2%, near $3.25/gallon. Precious Metals are advancing, with Gold up 0.4%, above $4,200/oz, and Silver up 1.2%. Copper is down 0.5%, slipping below $6.60/lb.

US Treasury yields continue to climb, with the 10-year yield holding above 5.25% and the 30-year yield above 5.60%. The US Dollar Index is up 0.3%, while the Euro is down 0.3% and the Loonie is down 0.1%.

Today’s economic calendar includes Canada’s Manufacturing PMI at 7:30 am MT, following a previous reading of 53.0. US ISM Manufacturing PMI follows at 8:00 am MT, with the Street expecting 55.0 versus 54.6 previously. US Construction Spending is also due at 8:00 am MT, with the Street expecting no change following a 0.5% decline. Nike reports earnings after the close. Attention then turns to Friday morning’s US Nonfarm Payrolls report, with the Street expecting 90K compared with 162K previously.

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