From: Henry Higdon Sent: Thur 11/1/2012 9:49:30 AM Subject: Early Tour 11.1.12 Good Morning ... European Markets mixed (Russia -0.94%, Spain -0.57%) ... Nikkei +0.21%, HSI +0.83%, SHCOMP +1.72%, KOSPI -0.71%, ASX -1.3% EUR 1.2937 (-0.18%) JPY 80.00 (-0.30%) SEK 6.6725 (-0.57%) Spain 10yr 5.62% Italy 10yr 4.93% US 10yr 1.71% Futures: Dow -29, Nasdaq -4, S&P-3 DXY 80.06 (+0.17%) Crude $86.38 (+0.16%) Gold $1723.30 (+0.24%) Asia finishes mixed despite China's official PMI manufacturing printing © 50.2 (inline with estimates but > 50 which suggests that growth has stabilized and stopped slowing for now). SHCOMP ripped after the release and closed +1.72% to outperform the region. Australia's ASX failed to rally however and closed on the lows -1.3% weighed down by the banks after NAB results yesterday as well as weak home price figures. Some European PMIs out this morning as well: UK 47.5 (est 48.0), Ireland 52.1 (51.8 prior), Russia 52.9 (52.4 prior), Swiss 46.1 (est 44.7), Sweden 43.1 (est 45.0), Greece 41.0 (42.2 prior), (Germany/France/Italy/Spain all out tomorrow). Spanish short-selling ban extended for 3 months until Jan 31 as expected. DJ headline out saying Germany sees no decision on Greek aid on Nov 12. New EU short selling regulation takes effect today that introduces a common framework for disclosure obligations, buy-in requirements and specific requirements for covering short sales (please call if any questions). Public holiday (All Saints Day) in many countries but markets are open in Belgium, France, Germany, Italy, Spain, Switzerland (Austria closed). Note that according to Citi ADP is using a new methodology for its jobs number now and it revised down its September reading from 162k to 88.2k under the new method (today is the 161 live release under the new system & consensus is 135k). With 5 days until the election, the latest NBC/WSJ poll shows Obama with narrow leads in 3 key swing states (WI, NH, IA). SPA's -4 handles =