Catalonia’s failure to disavow the region’s independence push sparked a risk off trade overnight; equities and oil fell 0.4% to 1%, while Treasuries rallied four basis points across the curve. Domestically, initial jobless claims came in better than expected, with 222,000 Americans filing for unemployment vs. the consensus expectation of 240,000. Given the decline in jobless claims week over week as well as improvements in other economic indicators, it appears the impact of the hurricanes has been short-lived and should not have a lasting effect on the overall economy.

Hafizan Hamzah
Director, Investment Management Group

10/16Empire Manufacturing20.430.224.4
10/17Import Price Index MoM0.60%0.70%0.60%
10/17Import Price Index ex Petroleum MoM0.20%0.30%0.30%
10/17Import Price Index YoY2.60%2.70%2.10%
10/17Export Price Index MoM0.50%0.80%0.60%
10/17Export Price Index YoY2.90%2.30%
10/17Industrial Production MoM0.30%0.30%-0.90%
10/17Capacity Utilization76.20%76.00%76.10%
10/17Manufacturing (SIC) Production0.20%0.10%-0.30%
10/17NAHB Housing Market Index646864
10/17Total Net TIC Flows$125.0b-$7.3b
10/17Net Long-term TIC Flows$67.2b$1.3b
10/18MBA Mortgage Applications3.60%-2.10%
10/18Housing Starts1175k1127k1180k
10/18Housing Starts MoM-0.40%-4.70%-0.80%
10/18Building Permits1245k1215k1300k
10/18Building Permits MoM-2.10%-4.50%5.70%
10/18U.S. Federal Reserve Releases Beige Book
10/19Initial Jobless Claims240k222k243k
10/19Continuing Claims1890k1888k1889k
10/19Philadelphia Fed Business Outlook2227.923.8
10/19Bloomberg Consumer Comfort51.149.5
10/19Bloomberg Economic Expectations47.551.5
10/19Leading Index0.10%0.40%
10/19-10/20Monthly Budget Statement$6.0b$33.4b
10/20Existing Home Sales5.30m5.35m
10/20Existing Home Sales MoM-0.90%-1.70%