Coming up Major Stock Indexes Were Little Changed on Concerns of the Effects of the Sino-U.S

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MARKET RECAP at 4 pm ET Coming Up Major stock indexes were little changed on concerns of the effects of the Sino-U.S. "The Roles of Higher Education in trade war on global growth. The euro fell Competitiveness and Global Productivity," against the greenback on Italian budget in Philadelphia. Federal Reserve Bank of concerns, while gold was down. Oil prices New York President John Williams speaks fell, but pared losses as investors bet on "Recent Developments in U.S. China’s economic stimulus steps would lift Monetary Policy" before the Central crude demand. U.S. bond market was Banking Forum co-hosted by the Federal closed for the Columbus Day holiday. Reserve Bank of New York and the Bank of Indonesia.

STOCKS Close Chng %Chng Yr-high Yr-low REUTERS/Ann Saphir U.S. President Donald Trump is expected DJIA 26486.78 39.73 0.15 26951.81 22739.38 to visit Iowa to deliver on his promise to lift Nasdaq 7735.95 -52.50 -0.67 8133.30 6630.67 Dallas Federal Reserve Bank President a summer ban on higher ethanol blends of S&P 500 2884.43 -1.14 -0.04 2940.91 2532.69 Robert Kaplan (pictured), a centrist gasoline, a measure aimed at boosting Toronto 15946.17 -60.50 -0.38 16586.46 14785.78 FTSE 7233.33 -85.21 -1.16 7903.50 6866.94 policymaker, discusses risks to a steady-as Farm Belt Republicans in tight midterm Eurofirst 1461.60 -16.81 -1.14 1587.95 1415.80 -she-goes policy of gradual rate hikes. He races. The move could reshape the retail Nikkei 23783.72 -191.90 -0.80 24448.07 20347.49 will also likely address threats of tariffs gasoline market, making gasoline with 15 Hang Seng 26202.57 -370.00 -1.39 33484.08 26219.56 and emerging-market weakness to the percent ethanol the new consumer U.S. outlook, before Economic Club of New standard. York breakfast, in New York. Meanwhile, FOREX Last % Chng Federal Reserve Bank of Chicago LIVECHAT - FED WATCH Euro/Dollar 1.1494 -0.25 President Charles Evans gives opening Reuters reporters and editors tracking the Dollar/Yen 113.12 -0.51 remarks before the Opportunity Finance Federal Reserve take questions on the Sterling/Dollar 1.3093 -0.22 Network (OFN) Conference 2018, in economics, politics, trade matters and Dollar/CAD 1.2957 0.17 Chicago. Separately, Federal Reserve Bank rates policies facing America's central of Philadelphia President Patrick Harker bank and others whose decisions drive COMMODITIES ($) Price Chng % chng speaks on "The Importance of Higher markets day in and day out. (0930 Front Month Crude /barrel 74.24 -0.10 -0.13 Education to the U.S. Economy" before ET/1330 GMT) To join the Global Markets Spot gold (NY/oz) 1188.11 -14.34 -1.19 Global Interdependence Center event, Forum, click here Copper U.S. (front month/lb) 0.0276 0.0000 -0.47 Reuters/CRB Index Total Return 205.87 0.78 0.38

S&P 500 Price $ Chng % Chng KEY ECONOMIC EVENTS

GAINERS Events ET Poll Prior Arconic Inc 23.40 1.56 7.14 NFIB Business Optimism Index for Sep 0600 -- 108.8 H & R Block Inc 26.51 1.07 4.21 General Electric Co 13.61 0.43 3.26 Conagra Brands Inc 34.65 1.06 3.16 LOSERS Salesforce.Com Inc 148.65 -6.42 -4.14 KEY RESULTS Waters Corp 182.95 -7.76 -4.07 Intuitive Surgical Inc 526.47 -22.24 -4.05 No major S&P 500 companies are scheduled to report. Packaging Corp of America 101.38 -4.25 -4.02

Market Monitor

The S&P 500 cut losses to end nearly flat Click on the chart for a full-size image after having been weighed down by concerns about slowing Chinese economic growth due to trade tensions between China and the United States. Beijing announced a steep cut in the level of cash that banks must hold as reserves, aimed at lowering financing costs and spurring growth amid the trade spat between China and the United States. The dollar rose slightly in response to the turmoil in Chinese markets. Some investors have grown concerned that the stronger dollar, along with mounting tariffs, could hurt large U.S. exporters as their products become more expensive for overseas customers. The U.S. Treasury is concerned about China's currency depreciation and is monitoring developments related to the yuan, a senior department official said. Though the U.S. bond market was closed for the Columbus Day holiday, the yield on the 10-year Treasury note, which hit a supporting the dollar: rising interest rates settled 0.36 percent lower at $83.86 per seven-year high last week, also kept around the world for both fundamental barrel. U.S. crude had fallen to a session investors on edge. Shares of General and worrisome reasons," said Joe low of $73.07 per barrel and was last down Electric Co ended up 3.26 percent. The Manimbo, senior market analyst at 0.15 percent at $74.23. Dow Jones Industrial Average rose 0.15 Western Union Business Solutions in percent, to 26,486.78, the S&P 500 lost Washington. "Italian borrowing rates have Gold fell as investors sought safety in the 0.04 percent, to 2,884.43 and the Nasdaq climbed, a sign of investor worry in the U.S. dollar on concerns about a selloff in Composite dropped 0.67 percent, to nation’s debt crisis." The dollar index was global stocks worsened by worries over 7,735.95. up 0.13 percent at 95.74. The euro was economic growth in China. "We are seeing 0.28 percent lower at $1.1491. some strength in the dollar index and The euro fell against the dollar on a spat some weakness in the equity market and it between Italy and the European Union Oil prices almost fully recovered from a doesn't appear that investors are going for over Rome's budget plans, while the yuan sharp drop, paring losses as investors bet safety in the gold markets at all," said Phil weakened as Beijing's move to spur more China's economic stimulus moves would Streible, senior commodities strategist at lending failed to ease concern about lift crude demand in the world's No. 2 RJO Futures in Chicago. "So they might be economic growth. Italian Deputy Prime economy. Traders sent global benchmark looking at Treasuries or other interest Minister Matteo Salvini, speaking at a Brent crude tumbling below $83 per barrel bearing products." Investor concern over media conference with French far-right early in the session after China's central higher U.S. interest rates, growth concerns leader Marine Le Pen, denounced bank on Sunday slashed lenders' reserve in China due to the trade dispute with the European Commission President Jean- requirements, a signal Beijing is working to United States, emerging market weakness Claude Juncker and Economics maintain economic growth. "The reaction and an Italian budget row all combined to Commissioner Pierre Moscovici as enemies by the Chinese to the slowdown there is a send equities sharply into the red. The of Europe. Sterling retreated as traders salve the market started to price back in," nervous mood was aggravated by China's booked profits on recent gains tied to said John Kilduff, a partner at Again central bank on Sunday cutting the level of optimism about a Brexit deal. Nervous Capital Management in New York. Traders cash that banks must hold as reserves, investors piled more money into the dollar, said oil prices also got a boost from a new aimed at lowering financing costs. Spot as speculators' bullish bets in the report showing a small drop in oil gold dipped 1.21 percent to $1,187.88 an greenback grew to their highest level since inventories last week at the main U.S. ounce. U.S. gold futures for December December 2016 last week. "What’s been storage hub at Cushing, Oklahoma. Brent settled down 1.14 percent, at $1,191.90 an weighing on broader markets has been crude hit a session low of $82.66 but ounce.

Top News

Alphabet shuts Google+ social site after She added the fall was not linked to trade acquisition is completed. Microsoft Chief user data exposed tensions. GM has been shifting its Buick Executive Satya Nadella has tried to Google will shut down the consumer cars to a new type of more efficient three- assuage users' worries that GitHub might version of its social network Google+ after cylinder engine to meet emissions targets, favour Microsoft products over competitors announcing data from up to 500,000 which Chinese dealers told Reuters had hit after the deal, saying GitHub would users may have been exposed to external sales because consumers were not yet continue to be an open platform that developers by a bug that was present for convinced by the smaller engines. "Many works with all public clouds. more than two years in its systems. The consumers still have concerns because company said it had discovered and they read negative comments about three- Starbucks taps Hyatt financial chief to patched the leak in March of this year and cylinder technology online, which aren't be its new CFO had no evidence of misuse of user data or really fair," said a sales manager surnamed Starbucks named Hyatt Hotels' financial that any developer was aware or had Hu at a Buick dealer in Zhejiang province. chief Patrick Grismer as its new chief exploited the vulnerability. The Wall Street financial officer, making another Journal reported earlier that Google had Microsoft's $7.5 billion GitHub deal set leadership change in the past year as it opted not to disclose the issue with its for EU approval -sources battles intense competition in a cooling Application Program Interfaces (API) partly U.S. software giant Microsoft is set to win U.S. coffee market. Maw's announcement due to fears of regulatory scrutiny, citing unconditional EU antitrust approval for its coincided with Executive Chairman and unnamed sources and internal documents. $7.5 billion purchase of privately held former Chief Executive Officer Howard Google said a software glitch in the social coding website GitHub, two people familiar Schultz's departure from the company, site gave outside developers potential with the matter said. Microsoft announced who built Starbucks into a global access to private Google+ profile data the deal in June, its largest acquisition powerhouse over four decades. Grismer, between a major redesign in 2015 and since it bought LinkedIn for $26 billion in currently serving as CFO of Hyatt Hotels, March 2018, when internal investigators 2016. The GitHub deal is expected to boost will join Starbucks on Nov. 12 and will take discovered and fixed the issue. The the U.S. software giant's cloud computing the role after Maw retires on Nov. 30, affected data was limited to static, business and challenge market leader Starbucks said. "As a seasoned CFO of optional Google+ Profile fields including Amazon. GitHub, the world's largest code multiple global, consumer-facing growth name, email address, occupation, gender host, has more than 28 million developers companies, (Patrick) brings tremendous and age. Separately, London's High Court using its platform. It will become a part of finance expertise, a customer-centric blocked an attempt to bring legal action Microsoft's Intelligent Cloud unit once the mindset and a wealth of restaurant against Alphabet Inc's Google over claims it had collected sensitive data from more than 4 million iPhone users although it said the company's actions had been "wrongful". To read more, click here

General Motors China sales go into reverse as market stalls General Motors's quarterly sales in China fell for the first time in over a year, hit by faltering economic growth and a wider slowdown in the world's biggest auto market amid a whipsawing trade war with the United States. The U.S. carmaker sold 835,934 vehicles in the third quarter ended September, down a sharp 14.9 percent from a year earlier, which the firm said was due to a "softening" vehicle market and issues shifting to a new engine system with its Buick brand. "The major reasons are a softening market, slowing lower-tier cities, Buick's engine change- over and a strong Q3 last year," a Shanghai-based GM spokeswoman said. A Microsoft store is pictured in New York City, U.S., August 21. REUTERS/Carlo Allegri

industry experience to Starbucks," translates to $18.78 per share and does rights, prompting the IWGB and others to company CEO Kevin Johnson said. Prior to not offer any premium to Rowan's Friday launch legal action. A Court of Appeal joining Hyatt, Grismer held a variety of close. Ensco shareholders will own 60.5 hearing over workers' rights at the leadership positions at companies percent of the combined company and company is due later this month. including KFC and Pizza Hut restaurants Rowan the rest. The deal, which is owner Yum Brands, where he was CFO. He expected to close in the first half of 2019, Axalta CEO resigns after probe also worked at The Walt Disney in finance will generate savings of $150 million found his conduct inconsistent with and strategy roles over a ten year period, annually. company policy Starbucks said. Maw, who has been CFO Axalta Coating Systems said Chief since Feb. 2014, will remain a senior Gulf of Mexico offshore platforms Executive Officer Terrence Hahn has consultant through March 2019 to ensure evacuated ahead of hurricane resigned after an investigation by external a smooth transition, the company said. Energy companies halted nearly a fifth of counsel found that his conduct was Gulf of Mexico oil production and inconsistent with the company's policies. Facebook debuts smart speaker for evacuated staff from 10 platforms as The chemical maker said Hahn's Messenger video calls Hurricane Michael intensified and headed resignation was by mutual agreement with Facebook released a smart speaker for a path up the eastern U.S. part of the the board and appointed Chief Financial designed to ease video calls, but the Gulf. BHP Billiton, BP, Equinor and Exxon Officer Robert Bryant to the additional role company's history of privacy mishaps and Mobil were evacuating personnel from oil of interim CEO. It did not give any details the device's price and limited functionality and gas platforms in the Gulf as regarding the reasons for his departure, could slow it from taking on market forecasters predicted the storm would but said it was unrelated to financial leaders Amazon.com and Alphabet’s become a Category 3 hurricane. matters. Hahn had joined Axalta in Google. The device, known as Portal, Companies turned off the daily production September. Before that he was the CEO of comes in $199 and $349 versions and its flow of 324,190 barrels of oil and nearly Honeywell's Home and Building signature feature is a wide-angle camera 284 million cubic feet of natural gas at Technologies business group. Axalta also that automatically keeps users in focus as midday, according to a survey of announced that its preliminary results for they move about a room, Facebook producers. Five drilling rigs also were the third quarter were in line with the hardware executives told Reuters in a moved out of the storm's path, the Bureau company's outlook. The company is meeting last week. They said Portal is of Safety and Environmental Enforcement expected to report quarterly results on available at Amazon and Best Buy stores said. Exxon removed staff from its Lena October 24. in addition to Facebook.com and starts production platform, the companies said. shipping to U.S. customers in early Exxon said it did not expect the staff Bausch Health's plaque psoriasis lotion November. Portal locks with a passcode, reduction to affect output. Hess, Royal gets tentative FDA approval and its microphones and camera shuts off Dutch Shell and Anadarko Petroleum said Bausch Health, formerly Valeant with the tap of a button. Video and voice they were monitoring the storm and would Pharmaceuticals, said it received tentative calls are encrypted and contents of them take action as needed. U.S. approval to market its plaque are not stored, the company said. Users psoriasis lotion, Bryhali. The company can conference with any Messenger user. UK union calls on its Uber drivers to plans to launch the lotion in November strike on Tuesday after receiving final approval from the Offshore driller Ensco to buy rival A British trade union called on Uber drivers Food and Drug Administration, pending Rowan in $2.38 billion deal to strike in London, Birmingham and expiration of exclusivity for a related Deep-sea oil driller Ensco said it would buy Nottingham on Tuesday for 24 hours by product, Bausch said. The FDA's tentative smaller rival Rowan in an all-stock deal not signing into the app, in a push for approval comes after a similar treatment valued at $2.38 billion, to take advantage higher fares and more working rights. Uber from the company failed to win clearance of a nascent recovery in the sector fueled has around 60,000 drivers in Britain and in June. Plaque psoriasis is a chronic by strengthening oil prices. "We're starting earlier this year won back its right to condition that causes dry, red skin lesions to see a broad pick up in nearly all operate in London after it was stripped of covered with silvery scales. "It is still geographies and all market segments," its licence by the city's regulator. The unclear if Bryhali will be labeled for longer Ensco Chief Executive Officer Carl Trowell Independent Workers Union of Great -term use, but we are encouraged by the told analysts. The combined entity will Britain (IWGB) expects hundreds of drivers press release which hints at tolerability have an enterprise value of about $12 at least to participate in the industrial benefits over Ultravate and a longer billion and will own a fleet of 28 floating action from 9000 ET by not signing into dosing regimen," Mizuho analyst Irina rigs and 54 jack-ups, with drilling the app. Protests are also planned outside Koffler said. Mizuho said it estimated operations in the Gulf of Mexico, Brazil and Uber's offices. Uber drivers are not obliged Bryhali to bring in revenue of $68 million in West Africa, among others. Ensco, which to work particular hours by the firm and 2022, while expecting the lotion to help bought rival Atwood Oceanics last year, choose when to sign in and out of the app. reach the company's target of doubling the said Rowan shareholders will receive 2.215 In Britain, its drivers are self-employed, dermatology business over the next five of Ensco shares for each share held. That entitling them in law to few workplace years.

Judge Brett Kavanaugh is sworn in as an Associate Justice of the U.S. Supreme Court by Chief Justice John Roberts as Kavanaugh's wife Ashley holds the family bible and his daughters Liza and Margaret look on in a handout photo provided by the U.S. Supreme Court taken at the Supreme Court building in Washington, U.S., October 6. Fred Schilling/Collection of the Supreme Court of the United States/Handout via Reuters

Insight and Analysis

COLUMN-Unfazed by record short US Emerging market stocks' descent to 17 COLUMN-Brent falls as fund managers bonds position, hedge funds gun for month lows entices U.S. investors take profits after rally: John Kemp 3.50 percent: McGeever The steep decline in emerging market Hedge fund managers started to take Hedge funds may have trimmed their stocks since early this year are attracting some profits after the strong rally in crude record bet against U.S. Treasuries, as the some U.S. fund managers who think they oil prices, even before details emerged last latest data show, but the 10-year yield's may find long-term bargains amid the sell- week of output increases from Saudi spike to fresh multi-year highs in the days off. Portfolio managers from Harding Arabia and sanctions waivers by the United since suggests that short position will now Loevner, Federated Investors, and Wells States. Hedge funds and other money be even greater. Given the scale of that Fargo are among those who have been managers cut their combined net long short position, you might expect an adding emerging markets stocks to their position in the six most important imminent squeeze and the yield falling portfolios in the face of the imposition of petroleum futures and options contracts back down to 3.00 percent or below. import tariffs by President Trump and by 19 million barrels to 1.081 billion barrels Instead, a test of 3.50 percent looks more rising interest rates in the U.S. Emerging in the week to Oct. 2. Portfolio managers likely. Data from the Commodity Futures market asset prices have been hit hard this cut their net long position in NYMEX and Trading Commission figures for the week year. The MSCI index of emerging market ICE WTI by 13 million barrels to the lowest ending Tuesday, Oct. 2 show funds scaled stocks closed Friday at its lowest since May level for almost a year, according to back their net short position in 10-year 2017 and it is down about 21 percent from exchange and regulatory records. Treasury futures to 740,192 contracts from January's high. a record 756,316 contracts the week before.

BULLARD ON RATE HIKES Emerging markets "as prepared as they can be" for U.S. rate moves - Fed's Bullard Emerging markets were "as prepared as they can be" for changes to U.S. monetary policy as the Federal Reserve had been as "transparent" as possible, St. Louis Federal Reserve Bank President James Bullard said in Singapore. Speaking to reporters on the sidelines of an event at the Singapore Management University, Bullard was asked about the prospects for another interest rate increase when the Fed's rate-setting committee meets in December. "It will depend on the incoming data. Things are looking good today, I would say. But you never know until you actually get to the meeting," Bullard, a non-voting member of the committee, said. Rising U.S. rates, coupled with fears over the impact of U.S.-Sino trade war, have hurt emerging Asia, and currency, bond and share markets in India, Indonesia and the Philippines and elsewhere in the region have all come under St. Louis Federal Reserve Bank President James Bullard speaks at a public lecture in Singapore, October 8. REUTERS/Edgar Su pressure.

STAKE BUY Bain Capital to buy majority stake in Rocket Software IT services company Rocket Software said private equity firm Bain Capital had agreed to take a majority stake in the privately held firm in a deal valued at about $2 billion.

ACQUISITION KKR launches $1.2 billion offer for Australian accounting software firm MYOB KKR & Co has launched a A$1.75 billion takeover offer for MYOB Group after buying almost a fifth of the Australian accounting software provider, as the U.S. private equity firm grows its portfolio of tech businesses.

DIVESTITURE GE to sell $1 billion of energy investments to Apollo Global General Electric said it plans to sell a portfolio of $1 billion in energy investments to Apollo Global Management, as the U.S. conglomerate sheds assets in its finance arm to focus on its industrial business.

GRAPHIC Banks, brokerages cut forecasts for emerging market firms Slower growth at the developing world's big homegrown companies in the second quarter has led analysts to cut their profit and price estimates sharply since the end of June, according to a Reuters analysis of data on thousands of listed firms.

BIDDING CONTEST Stada, buyout funds in race for Bristol-Myers' French business - sources German generic drugmaker Stada is vying with a group of European buyout funds for control of Bristol-Myers Squibb's French over-the- counter drugs business, sources familiar with the matter told Reuters.

FUND SHUT DOWN Jason Karp to shut hedge fund Tourbillon, focus on health and wellness Hedge fund Tourbillon Capital Partners is shutting down after several years of poor returns, making it the third well-known fund to announce plans to close its doors within a week.

ON THE RADAR Events ET Poll Prior Wed: PPI final demand yy for Sep 0830 2.8 pct 2.8 pct PPI final demand mm for Sep 0830 0.2 pct -0.1 pct PPI exfood/energy yy for Sep 0830 2.5 pct 2.3 pct PPI exfood/energy mm for Sep 0830 0.2 pct -0.1 pct PPI ex food/energy/transport yy for Sep 0830 -- 2.9 pct PPI ex food/energy/transport mm for Sep 0830 -- 0.1 pct Wholesale inventory, R mm for Aug 1000 0.8 pct 0.8 pct Wholesale sales mm for Aug 1000 0.2 pct 0.0 pct TR IPSOS PCSI for Oct 1100 -- 62.77

Thu: Core CPI mm, SA for Sep 0830 0.2 pct 0.1 pct Core CPI yy, NSA for Sep 0830 2.3 pct 2.2 pct CPI Index, NSA for Sep 0830 252.688 252.146 Core CPI Index, SA for Sep 0830 -- 258.14 CPI mm, SA for Sep 0830 0.2 pct 0.2 pct CPI yy, NSA for Sep 0830 2.4 pct 2.7 pct Real weekly earnings mm for Sep 0830 0.1 pct 0.1 pct CPI mm NSA for Sep 0830 -- 0.06 pct CPI Index SA for Sep 0830 -- 251.850 CPI, Potatoes for Sep 0830 -- 353.16 Initial jobless claims 0830 206,000 207,000 Jobless claims 4-week average 0830 -- 207,000 Continued jobless claims 0830 1.660 mln 1.650 mln Cleveland fed CPI for Sep 1100 -- 0.1 pct

Fri: Import prices mm for Sep 0830 0.2 pct -0.6 pct Export prices mm for Sep 0830 0.2 pct -0.1 pct U Mich Sentiment Preliminary for Oct 1000 100.5 100.1 U Mich Conditions Preliminary for Oct 1000 115.8 115.2 U Mich Expectations Preliminary for Oct 1000 90.0 90.5 U mich 1 year inflation preliminary for Oct 1000 -- 2.7 pct U mich 5-year inflation preliminary for Oct 1000 -- 2.5 pct ECRI Weekly Index 1030 -- 149.1 ECRI weekly annualized 1030 -- 0.5 pct

The Aurora Borealis (Northern Lights) is seen over the sky near Rovaniemi in Lapland, Finland, October 7. REUTERS/Alexander Kuznetsov

The Day Ahead - North America is compiled by Samrhitha Arunasalam and Swathi Nair in Bengaluru.

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