From: Sent: Thur 10/31/2013 10:06:37 AM Subject: Early Tour 10.31.13 Good Morning ... European Markets off 0-40 bps (Italy +0.67%, Spain +0.28%)... NKY -1.20%, SHCOMP -0.87%, HSI -0.50%, KOSPI -1.43%, TWSE -0.18%, ASX -0.10% EUR 1.3704 (-0.23%) JPY 98.28 (+0.23%) EUR/JPY 134.67 (-0.47%) NZD 0.8278 (+0.14%) AUD 0.9509 (+0.26%) US 10yr 2.51% Japan 10yr 0.59% Germany 10yr 1.69% Portugal 10yr 6.22% Italy 10yr 4.15% Spain 10yr 4.02% Futures: Dow -27, Nasdaq -15, S&P -4 0XY $79/82 (+4c) Crude $96.77 (unch) Gold $1335.80 (- $13.50) Copper -0.60% Silver -2.69% APAC indices are lower following overnight weakness as the FOMC statement was more hawkish than expected. South Korea underperformed as the KOSPI posted the biggest fall this month as foreigner finally turned net sellers after a record 44 straight days of buying. Japanese equities also struggled amid the biggest reporting day for earnings and month end. Markets were modestly lower for most of the session before an ECB official commented mid-afternoon that liquidity will be provided after the LTRO expiration, which affected FX markets and sent Nikkei sharply lower. The BOJ left policy unchanged and said it will retain plans for JPY60-70 trillion annual rise in monetary base. China and Hong Kong also fell although mainland developers bucked the trend as President Xi said will speed up public housing construction. Australian September building permits came in strong at +14.4% MoM vs. consensus at +2.8% expected. Most European markets pulling back a bit this morning (Italy & Spain outperforms) with continued better than expected earnings from BNP Paribas, Anheuser-Bush InBev, Alcatel-Lucent etc offsetting yesterday's Fed's comments (odds of US central bank starting to taper stimulus in January rose to 45% from 25%). Continued big movers in after-hours yesterday following #'s, led by Facebook initially jumping 10% following the strong release but pullback (currently +2.5%) after warning of dec