From: Sent: Thur 10/16/2014 9:58:31 AM Subject: Early Tour 10.16.14 Good Morning ... European Markets off 1.7%-3.0% (Portugal -3.8%, Italy -3.2%) ... NKY -2.22%, SHCOMP -0.72%, HSI -1.03%, KOSPI -0.37%, TWSE -0.25%, ASX +0.18% EUR 1.2806 (-0.25%) JPY 105.62 (+0.29%) Greece 10yr 8.71% Italy 10yr 2.71% Spain 10yr 2.40% Portugal 10yr 3.58% 10yr US 10yr 1.99% Futures: Dow -162, Nasdaq -47, S&P -23 DXY 84.99 (-0.18%) Crude $80.45 (-1.63%) Gold $1243 (-0.13%) Asian indices were mostly lower overnight, following the global selloff. Japan underperformed as exporters got sold on back of the stronger Yen (trading below 106 for most of the day). The Topix is now down 11% from the September 25th high. Oil&Gas, Shippers and Steel names led declines. One bright spot was Recruit Holdings (+7.4%) which made a strong IPO debut and was the most actively traded stock on the TSE. China rallied in the AM session, led by railway names on the back of continued talk that China and Russia will build a high-speed transport linking Beijing and Moscow. The SHCOMP could not hold gains in the PM session though and the market closed on the lows. Macro data was mixed with September New Yuan Loans (857.2bn vs est 750bn) and FDI (+1.9% vs est -14%) coming in better than expected and M1 (+4.8% vs est +5.9%) and M2 (+12.9% vs est +13%) Money below estimates. Australia got a boost from the data, outperforming the region despite miners being under pressure throughout the session (FMG -6% post qtrly update). Also note Saudi Araba market is getting hit -5.0% today which takes it to -13% for the month. European markets opened up (with zero conviction) after the US recovered from its worst levels into yesterday's close, but have faded again and moving south very fast. Volumes started out quieter on the initial bounce but have accelerated again on the slide lower. Credit is v weak again today. Greek 10yr yield spiking again, up another 85bps today to 8.71%. An early story out on