It has been a steady start to the week so far. Asia Pacific stocks started out high, but gains have been harder to come by in Europe and North America so far. With the immediate budget crisis in the US having been put to bed for a few weeks, traders have been assessing the implications of what has happened. The prospects that the government shutdown and next round of fiscal deadlines could delay Fed tapering until March as least continues to shore up support for stocks. Weekend reports of strong inflows of capital into ETFs in recent weeks suggests the QE money continues to find its way into the stock market. The big action today has been seen in crude oil which continues to steadily drop as WTI takes out $100.00 and Brent falls back under $110.00. Easing political risks and increasing US production continue to weigh on the market ahead of today’s storage catchup. Currency markets have been relatively quiet to start the week with USD staging a small technical rebound from recent losses, gold consolidating recent gains and paper currencies relatively steady except for weakness in ZAR. Tomorrow has the potential to be more active, particularly surrounding the delayed US nonfarm payrolls report. Corporate News McDonalds $1.52 vs street $1.51 Hasbro $1.31 vs street $1.30 Economic News Significant economic announcements released yesterday afternoon and overnight include: Italy industrial sales (6.8%) vs previous (2.2%) Japan trade balance (¥932B) vs street (¥920B) Economic reports due later today include: 10:00 am EDT US existing home sales street 5.32 million 10:30 am EDT US crude oil and gasoline inventories delayed from Oct 16th.

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