WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.6%, slipped from opening bell – back to twenty points from record high.
· Brent <$46, continued to rattle around $4 range ahead of OPEC meeting in Algiers this week.
· No hard agreement at prep talks in Vienna between arch enemies Iran & S Arabia, but talks were set to continue into weekend.
· But breadth negative 4-1, meant damage more than just oil. Sept prelim PMI Manuf undershot again (51.4 vs ests 52, Aug 52).
· Treasury yields softer again; Fed fund futures all the way back at 55% for 2016 hike. And NYSE’s $26bn, dipped from mid-week highs ahead of Clinton-Trump debate.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia soft. Oil off Friday’s late lows – back above $46 – on Saudi offer to cut production to Jan levels. But rest of it risk-off; Hong Kong -0.7%; Tencent -1.1%.
· Australia unch, kept afloat by resources. BHP +0.1% & Rio +0.7%, both indicate steady London open. But volumes are terrible – on track for 50% below average.
SOUTH AFRICAN NEWS:
· Expect AllShare -0.25%. From SA close Fri, gold -$6 ($1333), plat -$13 ($1042), copper -0.4% ($2.19/lb), oil -3.1% ($46.20), USDZAR +0.2% (13.70), S&P -0.3%.
TODAYS KEY DATA POINTS:
· 10am: Germany Sept IFO
· 4pm: US Aug New Home Sales