Treasury prices rallied modestly overnight amid concerns of political instability in Spain. European markets are mixed, with the FTSE 100 edging higher and the IBEX 35 significantly lower (-.98%) as investors are hoping that the Spain/Catalonia situation calms down. Asian equity markets overall are up as well, most notably the Nikkei +.64% on the day.

In other news, Turkey and the US have blocked tourist and business travel between each other as tensions continue to rise over Turkey’s arrest of Metin Topuz at the US Consulate in Istanbul. US market response has been muted, unlike in Turkey where the Lira weakened over 2% on Monday.

In addition, the Trump Administration will formally withdraw from the Obama-era Clean Power Plan today. This coupled with the Administration’s supposed plan to decertify the Iranian nuclear deal has markets watching closely.

Eric Kruglak
Senior Associate, Investment Management Group

10/10/2017NFIB Small Business Optimism105103105.3
10/11/2017MBA Mortgage Applications-0.40%
10/11/2017JOLTS Job Openings61436170
10/11/2017FOMC Meeting Minutes
10/12/2017PPI Final Demand MoM0.40%0.20%
10/12/2017PPI Ex Food and Energy MoM0.20%0.10%
10/12/2017PPI Ex Food, Energy, Trade MoM0.20%0.20%
10/12/2017PPI Final Demand YoY2.60%2.40%
10/12/2017PPI Ex Food and Energy YoY2.00%2.00%
10/12/2017PPI Ex Food, Energy, Trade YoY1.90%
10/12/2017Initial Jobless Claims250k260k
10/12/2017Continuing Claims1930k1938k
10/12/2017Bloomberg Consumer Comfort49.9
10/12/2017Monthly Budget Statement$10.0b-$107.7b
10/13/2017CPI MoM0.60%0.40%
10/13/2017CPI Ex Food and Energy MoM0.20%0.20%
10/13/2017CPI YoY2.30%1.90%
10/13/2017CPI Ex Food and Energy YoY1.80%1.70%
10/13/2017CPI Core Index SA253.017252.54
10/13/2017CPI Index NSA246.933245.519
10/13/2017Real Avg Weekly Earnings YoY0.90%1.00%
10/13/2017Retail Sales Advance MoM1.60%-0.20%
10/13/2017Real Avg Hourly Earning YoY0.60%0.70%
10/13/2017Retail Sales Ex Auto MoM0.90%0.20%
10/13/2017Retail Sales Ex Auto and Gas0.40%-0.10%
10/13/2017Retail Sales Control Group0.40%-0.20%
10/13/2017U. of Mich. Sentiment9595.1
10/13/2017U. of Mich. Current Conditions111111.7
10/13/2017U. of Mich. Expectations8584.4
10/13/2017U. of Mich. 1 Yr Inflation2.70%
10/13/2017U. of Mich. 5-10 Yr Inflation2.50%
10/13/2017Business Inventories0.70%0.20%
10/16/2017Empire Manufacturing20.424.4
10/17/2017Import Price Index MoM0.40%0.60%
10/17/2017Import Price Index ex Petroleum MoM0.10%0.30%
10/17/2017Import Price Index YoY2.10%
10/17/2017Export Price Index MoM0.30%0.60%
10/17/2017Export Price Index YoY2.30%
10/17/2017Industrial Production MoM0.10%-0.90%
10/17/2017Capacity Utilization76.20%76.10%
10/17/2017Manufacturing (SIC) Production-0.30%
10/17/2017NAHB Housing Market Index6464
10/17/2017Total Net TIC Flows-$7.3b
10/17/2017Net Long-term TIC Flows$1.3b