Wednesday, October 18, 2017

Good morning- Global equities are significantly higher to start this morning’s session. In Europe, the Stoxx 50 is up 9 points, the FTSE up 9.5 points, and the DAX is up 37 points. In Asia, the Nikkei is up 60 points and the Hang Seng up 33 points. Right now the Dow futures are up almost 80 points which would be a record-high open. Meanwhile, the S&P is up 3.5 points and the NASDAQ is up 3 points. Oil is continuing its rally and is trading through $52/bbl while the VIX threatens to dip below 10. With respect to rates, Treasury yields are 1.5-3bps higher across the curve in steepening fashion. That said, the yield on the 10yr UST is up to 2.33% after failing to dip below that 2.3% level yesterday. In the IG space, Goldman is set to price today after $8.15bn priced yesterday from six issuers. In addition to hearing earnings from American Express and Abbot Laboratories, the Fed Beige book will be released this afternoon.