- Reuters/Carlo Allegri
Here is what you need to know.
Round 1 of the presidential debate is over. The economy was one of the three topics of the debate, with Donald Trump suggesting the US had become a “piggy bank” for China and that Mexico was “stealing” jobs. Hillary Clinton took aim at Trump as someone who “rooted for the financial crisis.”
The Mexican peso is rallying. The peso is stronger by 1.6% at 19.5616 per dollar on the heels of Monday night’s presidential debate. Many are pointing to strength in the peso as a sign Hillary Clinton won the debate. The peso, however, has weakened by 9% since August 15, as Lawrence McDonald (@Convertbond) points out on Twitter. You can draw your own conclusions about what the market is saying.
China stockpiles oil whenever prices are at $50 or lower. “Since the price fall in 2014, China’s implied crude stock build has increased significantly,” Barclays analysts Miswin Mahesh and Michael Cohen wrote in a note to clients. “On a monthly basis, it appears that $50/bbl Brent is a key price level, below which implied crude build tends to remain at elevated levels.”
Deutsche Bank is sinking again. The investment bank is down more than 3% in Germany and sitting at a record low near 10.20 euros, as shares continue to reel following Monday’s comments from German Chancellor Angela Merkel suggesting Deutsche Bank will not receive a bailout.
Perry Capital is reportedly closing its flagship fund. The fund has seen its assets under management dwindle down to $4 billion from its peak of $15 billion in 2007, Bloomberg reports.
Polls says most Americans think Wells Fargo’s CEO should resign. A survey of 507 Americans conducted by SurveyMonkey found that 86% of respondents thought John Stumpf should resign after the recent accounts scandal at the bank.
Caesars and its creditors have agreed on a restructuring. Creditors will receive about 70% of the fully diluted equity in the new structure, while second lien noteholders and unsecured creditors will get paid $0.66 on the dollar, Bloomberg reports.
Nike reports after the closing bell. The athletic-apparel giant is expected to earn $0.56 a share on revenue of $8.87 billion, according to the Bloomberg consensus.
Stock markets around the world are mixed. Hong Kong’s Hang Seng (+1.1%) led in Asia, and Germany’s DAX (-0.9%) paces the decline in Europe. S&P 500 futures have given up most of their overnight gains, trading up 3.75 points at 2,143.50.
US economic data is moderate. S&P Case Shiller home prices will be released at 9 a.m. ET before Markit services PMI and consumer confidence are reported at 9:45 a.m. ET and 10 a.m. ET. The US 10-year yield is down 1 basis point at 1.57%.