Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning. European index futures and Asian stocks rose as U.S. lawmakers continued talks on raising the nation’s debt limit to avoid a default. Zinc and gold climbed with emerging-market currencies. The S&P 500 index jumped the most since Jan. 2 and Treasury bill rates dropped yesterday on optimism an agreement will be reached to raise the U.S. debt ceiling before an Oct. 17 deadline. Talks between Republican lawmakers and President Barack Obama will continue as they try to seek a “path forward,” according to Republican House Majority Leader Eric Cantor. The White House said “no specific determination was made” during an initial 90-minute meeting in Washington.

WHAT TO WATCH:

• Royal Mail Stock Cut for Institutions as U.K. Boosts Retail Pot

• Asian Stocks Climb on U.S. Debt-Ceiling Talks

• Westpac Buys Lloyds’s Australian Loan Book for $1.47b

• Alitalia Gets Lifeline From Postal Service as Letta Seeks Rescue

• Draghi Says Guidance Allows Rate Cuts If Volatility Returns

• Merkel, Greens Agree Second Round of Talks on Possible Coalition

• Moscovici Says France’s Economy Is ‘Clearly’ Out of Recession

• Regling Says Greece Widely Expected to Need New Bailout in 2014

• Platform Purchase to Buy MacDermid for About $1.8b

• U.K. House Prices Rise to Record as First Timers Drive Demand

• Genmab Reports Positive Top-Line Results of Ofatumumab in MS

• Vivendi Sees Sale of Activision Majority Stake Complete Oct. 15

• Prisa Reaches Agreement With Most Debt Holders on Refinancing

• Spain’s Debt Easier to Manage as Exports Increase, Treasury Says

EARNINGS All times CET, estimates where available:

• EMS-Chemie (EMSN SW) TBD, 3Q sales

• Aeroports de Paris (ADP FP) TBD, Sept. traffic

• Fraport (FRA GY) TBD, Sept. traffic

• Flughafen Zuerich (FHZ SW) TBD, Sept. traffic

• XP Power (XPP LN) 8am, 3Q sales

Good day and happy trading!

Kristian Camenzuli