Reuters/Ahmed Jadallah
Member of the Iraqi Counter Terrorism Service firing his weapon at Islamic State militants in the al-Zahraa neighborhood of Mosul, Iraq.
Bond markets everywhere are getting smoked. Selling continues in bond markets all over the world as a President Trump has brought out the vigilantes. Here in the US, the 10-year is up 12 basis points at 2.27%, and at its highest level since the beginning of the year. And bonds elsewhere are getting hit hard too. In Asia, South Korea's 10-year spiked 17 bps to 2.11% and in Europe, Italy's 10-year leads the advance, up 15 bps to 2.17%.
Stock markets around the world are higher. Japan's Nikkei (+1.7%) led the gains in Asia and Britain's FTSE (+0.9%) is out front in Europe. The S&P 500 is looking to open little changed near 2,164.
The US dollar is at best level since January. The US Dollar Index briefly crossed 100.00 for the first time since December as traders continue to price in a Fed rate hike at the December meeting. Fed fund futures data compiled by Bloomberg shows an 84% probability the Fed will raise its benchmark interest rate 25 bps at its upcoming meeting.
China's economy is humming along. Industrial production rose 6.1% year-over-year and retail sales grew at a 10.0% YoY. Both numbers were shy of expectations, but still represented solid growth.
Japan's economy crushed expectations. The Japanese economy grew at a seasonally adjusted annualized rate of 2.2% in the third quarter, crushing the 0.9% growth that economists had forecast. The yen is weaker by 1.2% at 107.93 per dollar, and at its lowest level since June.
Siemens is buying Mentor Graphics. Siemens will pay $4 billion, or $37.25 per share in cash, for the semiconductor-design software company. The deal price represents a 21% premium over Friday's close.
Samsung is betting on cars. The electronics giant has agreed to pay $8 billion for Harman International Industries. According to the New York Times, "Samsung could combine its display and semiconductor operations with a business that already provides sound, electronics and other smart components for a new generation of digitally connected cars."
American Apparel files for bankruptcy. The retailer filed for bankruptcy for its second time in just over a year, listing assets and liabilities in the range of $100 million to $500 million, Reuters reports, citing a Delaware court filing.
A hedge fund wants Kate Spade to sell itself. Caerus Investors believes that while brand equity is strong, it would be "better suited in the hands of a larger, more experienced, global player."
Fed speak is heavy. Dallas' Kaplan, Richmond's Lacker, and San Francisco's Williams will all take the mic on Monday.