Trader Talk: An Analysis of the Markets this Morning

Good morning,

U.S. index futures advanced and the yen weakened against all its major peers after Senate leaders said they’ll resume talks on the debt limit. Rates on Treasury bills due Oct. 24 gained, while European stock-index futures declined with Asian shares.

Leaders in the Senate are rushing to lock down an agreement to end the fiscal impasse, stepping in after House Republicans’ last-minute plan to avert a U.S. government default collapsed. Fitch Ratings put the world’s biggest economy on watch for a possible credit downgrade, citing lawmakers’ inability to forge a deal. European new-car sales rose the most in more than two years in September, data showed today.

WHAT TO WATCH:

• LVMH Growth Misses Estimates as Fashion and Leather Goods Slow

• Allianz CEO Says Inflated U.S. Yields Underprice Default Risk

• Merkel Bloc, Greens Couldn’t Agree on Tax, Aide Says

• TPG, Ivanhoe Said to Buy European Warehouses Worth $1b

• S&P 500 Futures Gain as Yen Weakens on Senate Talks

• Ubisoft Says Delayed Games Will Cause Full-Year Operating Loss

• Alcatel-Lucent Must Cut Costs to Survive, CEO Tells Lawmakers

• Fiat Trial Over UAW’s Chrysler Shares Set for September 2014

• Intesa Sanpaolo to Subscribe to EU26 Alitalia Capital Increase

• Noonan Sees Faster Bank of Ireland Preference-Share Sale

EARNINGS All times CET, estimates where available:

• ASML Holding (ASML NA) 7am, 3Q net GAAP est. EU192m

• Castellum (CAST SS) noon, 3Q adj. EPS est. SK2.06

• Danone (BN FP) 7:30am, 3Q rev. est. EU5.42b

• Publicis (PUB FP) TBD, 3Q rev.

• Edenred (EDEN FP) aftermkt, 3Q rev.

• 888 Holdings (888 LN) 8am, 3Q sales

• Hochschild (HOC LN) 8am, 3Q sales

Good day and happy trading!

Kristian Camenzuli