Market Brief – Monday 9/30/19

The U.S. Treasury denied reports that Chinese companies could be delisted from U.S. stock exchanges which sent U.S. equity futures higher Sunday evening once the futures market opened. South Korea reported one of its hog farms has been infected with the contagious African Swine Flu. China said they hope the next round of trade talks will be constructive as they are planning to send their top trade negotiator to Washington sometime in October.

China Manufacturing PMI rose slightly to 48.9, Composite PMI up a tenth to 53.1, Caixin Manufacturing PMI up slightly to 51.4. and Non-Manufacturing PMI was down a tenth to 53.7. Japan Industrial Production fell -1.2% in September and -4.7% over this time last year.

The New York Fed’s repo operation tended offers for $63.5 billion as the dollar shortage persists. The Chicago PMI contracted for the third time in four months by dropping to 47.1.

Stocks held their overnight ramp as large investors look to drive stock prices higher before the quarter-end, while Treasury yields were up slightly. Gold and crude oil were down in early trading.

Stocks closed higher on light volume and Treasury yields closed lower to finish out the third quarter. Gold and crude oil closed lower, and agricultural commodities closed higher on reports of increased shipments, lower-than-expected inventory levels and expectations of lower yields. Tomorrow kicks off a week of heavy economic data with the September Nonfarm payroll report on Friday.