REUTERS
Good Morning! Global growth concerns continue, as German industrial production fell sharply - sparking heightened recession fears. This, coupled with Japanese Prime Minister Abe warning of the debilitating effects of a weak yen on households and small and midsize companies - has the futures starting today on the back foot. Smallcaps are off 50bp, as Inflation measures dropping drag the Russell growth names lower. Ebola concerns continue to weigh on headlines from Spain - hitting IBEX for 1.5% - Transports may suffer as the US looks at fresh screening measures for air travelers. Miners are helping FTSE outperform (but still off 6bp) after RIO said it rejected a Glencore offer. Mixed session in Asia, with Hang Seng gaining 50bp on signs the pro-democracy protests in Hong Kong are dwindling. Nikkei lost 60bp as the GPIF portfolio shift is being delayed, while Aussie closed near unchanged as their Central Bank stayed pat. South Korea popped 40bp, led by Samsung - whose terrible guidance was a "buy the news" event
The US 10YY is off small, despite German yields gaining a few bp. With falling Inflation metrics in America, keep an eye on that US 2YY - it's nearing 1M lows as traders get more dovish on Fed policy. The DXY is higher, bouncing from yesterday's selloff - causing a bit of a headwind for commodities. Metals remain mixed, but the Oil complex is back under pressure led by a 60bp drop in Brent despite reports ISIS is now active on the Syrian/Turkish border. Gasoline futures remain under pressure, but that didn't help the consumer stocks yesterday. Scheduled Catalysts today include Treasury Sec Lew speaking at 8:45, at 10 we get JOLTs labor data, at 11 we have a very small POMO. At 1 there is a 3Y auction, at 2:30 Kocherlakota speaks, and at 3pm we get consumer credit and Fed's Dudley. API data for Crude hits after the close, along with a speech from Fed's Potter.