Japan August PPI services rose at the fastest pace inn 3-1/3 years. Asian markets settled mixed. The Nikkei 225 rose +0.29% the Shanghai Composite fell -0.58%. The German August wholesale price index rose at the fastest y/y pace in 16 months. European equities closed with modest gains. The DAX rose +0.19%. Yields on 10-yr. Bunds were 0.546%. The July S&P Corelogic Case-Shiller Home Price Index came in at the consensus, +0.1% and the FHFA House Price Index rose less than consensus, +0.2%. September Consumer Confidence blew past expectations to 138.4. Yields on 10-Year Notes finished at 3.095%. The US$ Index moved slightly lower. December gold edged up +$0.70 to $1,205.10. November Crude added another +0.3% to $72.28. Equities began the day with slight gains but faded into slight losses as President Trump spoke to the United Nations General Assembly. Markets shook off the confrontational tone of the speech and returned to slight gains. The rest of the day, trading was in a tight range on light volume as traders await the results of tomorrow’s Fed meeting. At the close, markets were narrowly mixed.

China called off planned trade talks and a round of tariffs from both the U.S. and China went into effect. Asian markets settled mostly lower. The Nikkei 225 and the Shanghai Composite were both closed for a holiday. The German September IFO business climate survey fell, but was still stronger than expected. European equities finished lower. The DAX dropped -0.64%. Yields on 10-yr. Bunds moved back above 0.5% to close at 0.511%. There were no major economic reports released today. Yields on 10-Year Notes crept slightly higher to 3.083%. The US$ Index waivered early, but finished steady. December gold added +0.3% to $1,204.40. November Crude 2-month high, closing up +1.8% to $72.08. Trade was at the fore as equities began the day lower. Early pressure was on large-cap technology, but spilled over into other sectors. Both the Nasdaq 100 and the Russell 2000 tested technical support at the 50-day moving averages. As tech rebounded, other markets came off their lows, but remained in the red. Volume was on the light side. Tech strength grew throughout the day, but markets closed widely mixed.

Japan August national CPI rose more than expected. Chinese Premier Li Keqiang promised tax cuts to boost domestic consumption. Asian markets settled mostly higher. The Nikkei was up +0.82% and the Shanghai Composite powered higher, up +2.50%. The Eurozone September Markit/BME manufacturing PMI fell more than expected. European equities closed higher. The DAX rose 0.85%. Yields on 10-yr. Bunds slipped to 0.460%. The September PMI Composite FLASH was below expectations at 53.4. The Manufacturing component was above at 55.6 but the Services component was below at 52.9. Baker-Hughes reported that the U.S. oil rig count for 09/14 dropped by 1 to 866. Yields on 10-Year Notes were roughly flat at 3.065%. The US$ Index bounced higher. December gold fell -0.8% to $1,201.30. November Crude closed up +0.7% to $70.78. DJIA and S&P 500 jumped out to open at new highs. After pausing to digest previous gains, averages drifted lower, led by the re-emergence of selling pressure in technology. Volume was light. The DJIA held on to gains through the close, but other averages finished modestly lower.