Friday, October 20, 2017

Good morning- Global equities are higher to start this morning’s session after a very weak opening yesterday. In Europe, the Stoxx 50 is up 7 points, the FTSE up 16.5 points, and the DAX is up 27 points. In Asia, the Nikkei is up 30 points and the Hang Seng up 15 points. US stock futures point to a higher open after the tax reform bill passed in the Senate. That said, the DOW is 79 points, the S&P up 5.5 points, and the NASDAQ is up 10.75 points. The dollar is stronger and oil has fallen below $51/bbl, extending its recent decline. With respect to rates, Treasury yields are 3.5-5.5bps higher across the curve with the yield on the 10yr UST climbing to 2.37%. It is worth noting that Powell and Taylor have emerged as favorites for the Fed Chair. In addition to hearing earnings from Procter & Gamble and Schlumberger, we will see data on existing home sales.