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Analysts at ANZ Bank New Zealand Limited explained that the new NAFTA deal boosted US equities with the DJIA leading gains, up 0.8% at the time of writing.  

Key Quotes:
 
“Materials, industrials, and energy were all up more than 1%. The latter supported by higher oil prices, with WTI up 2.3%. The S&P 500 lifted 0.5%.”
 
“Key European indices were mixed, with the Euro Stoxx 50 and CAC 40 up 0.4% and 0.2% respectively, but the FTSE 100 down 0.2%.”
 
“USD was generally firmer against the G10,  however  CAD surged following news of NAFTA.”
 
“US  treasury  yields were little changed, lifting around 1bp at the long end. Italian yields continued to surge, up around 30bps in the 2-5 year space and 15bps for 10-year, as government budget anxieties continue to weigh.”  

 
DATA/EVENT PULSE

PAST PEAK BUT HOLDING STRONG:

“The September ISM eased to 59.8 (mkt: 60, last: 61.3) but still remains very close to expansion highs. New orders slipped to 61.8, from 65.1, with production lifting to 63.9, from 63.3. Overall, the ISM suggests economic activity is continuing to run hot, consistent with the FOMC’s interest rate profile. Meanwhile, construction spending came in weaker than expected at 0.1% m/m to be up 6.5% y/y. Private residential construction fell 0.7%, following a sluggish 0.2% gain in the prior month. While public construction spending jumped by 2.0% in August, following a 1.7% rise prior.”

MIXED:  

“The Europe Markit manufacturing PMI fell 0.1pts in September to 53.2, slightly below market, while the UK PMI rose 0.3pts to 53.8, ahead of  market. As expected, the euro area unemployment rate continued to trend lower, falling 0.1%pts to 8.1% supported by a 0.5%pt fall in Italy to 9.7%. Ongoing labour market strengthening is consistent with building wage pressures and gradual ECB normalisation.”