Good morning,

Markets are called to open higher this morning. European stock futures rose while Asian shares rallied from the biggest drop in six weeks as business confidence in Japan reached an almost six-year high, overcoming the partial shutdown of the U.S. government.

U.S. lawmakers passed a midnight deadline without reaching a compromise to continue funding the government. The Bank of Japan’s Tankan rose more than analysts expected, and traders pared bets on future interest-rate cuts in Australia after the Reserve Bank left borrowing costs unchanged. Reports later today may show manufacturing in the U.K., euro area and the U.S. expanded in September.


• U.S. Govt Shut Down as Deadlocked Congress Flails Over Spending

• Asian Stocks Rise After Tankan, Treasuries Decline

• Italy in Disarray as Draghi Pledge Keeps Nation From Brink

• Macquarie Group Is Said to Make an Offer for Lloyds’s Assets in Australia

• Bank Secrets Exposed in EU Credit Derivatives Antitrust Probe

• Don’t Encourage Banks to Buy Govt Debt, Weidmann Writes in FT

• Unilever Sales Slowed in Third Quarter on Emerging Markets

• BNP Paribas Hires Six to Bring Tokyo Equity Desk to About 100

• Vodafone Italy Said Set to Name Bisio CEO to Replace Bertoluzzo

• Eurex Plans Penalties for Some High-Speed Trading Practices

• Osram Says SLS Restructuring in North America to Affect 900 Jobs

• Roche’s Perjeta Wins Approval as Early Breast Cancer Option

• Axa Sells Majority Stake in Private Equity Fund-Management Unit

EARNINGS All times CET, estimates where available:

• Wolseley (WOS LN) 8am, FY adj. EPS GBP1.76

• St Ives (SIV LN) 8am, FY adj. EPS GBP0.16

• ITE (ITE LN) 8am, 4Q sales, trading stmt

Good day and happy trading!

Kristian Camenzuli