From: Sent: Fri 10/4/2013 9:51:06 AM Subject: Early Tour 10.4.13 Good Morning ... European Markets +10-40 bps NKY -0.94%, KOSPI -0.12%, HSI -0.41%, TWSE +0.07%, ASX -0.51% EUR 1.3610 (+0.08%) JPY 97.17 (+0.53%) EUR/JPY 132.26 (-0.45%) AUD 0.9438 (+0.61%) NZD 0.8304 (+0.24%) US 10yr 2.62% Japan 10yr 0.65% Germany 10yr 1.82% Portugal 10yr 6.49% Italy 10yr 4.32% Spain 10yr 4.22% Futures: Dow +19, Nasdaq +10, S&P +4 DXY $79.83 (+8c) Crude $103.56 (+25c) Gold $1315.60 (-$2.00) Copper +0.05% Silver -0.65% Most major indices ended lower following the overnight lead as the deadlock in the US continues and the S&P saw its biggest one day decline since late August. Volumes continue to track light as China remains closed for Golden Week. Japan underperforms as the yen strength continues to weigh. The Bank of Japan left interest rates unchanged today and refrained from adding to unprecedented monetary stimulus after business confidence surged and Prime Minister Shinzo Abe decided the economy was strong enough to weather a sales-tax increase. The Kospi managed to erase most of early losses after dipping below 1990 in early session although the index failed to recover 2k levels. Samsung Electronics ended flat after being marked down in the closing auction despite positive preliminary results. In Hong Kong, Macau names saw some profit taking after September GGR came out in line with expectations. European stocks opened flat but have traded up with the SXSE trading +44 bps. Euro volumes are tracking below average but liquidity feels even thinner than that. US futures are pointed modestly higher as US investors continue to weigh the consequences of the shutdown lasting longer than all originally expected. With the Department of Labor delaying the September Employment report to a later date, no major eco releases are scheduled, nor are there any earnings releases, leaving the market in a news vacuum which will most likely lead to choppy trading and mov