Upgraded

1. U.S. stocks were marginally higher on Monday as investors assessed factory activity data from China and Germany, and ahead of U.S. manufacturing data.

China's official factory data on Sunday showed activity unexpectedly shrank for a third straight month in October, though the contraction was modest.

2. The euro rose to session highs against the dollar on Monday, extending gains further above the 1.10 level after data showing the U.S. manufacturing sector expanded at the slowest rate in two years in October.

The dollar weakened after the Institute of Supply Management said its manufacturing purchasing managers’ index ticked down to 50.1 in October from 50.2 in September.

Economists had expected the index to decline to 50.0, which is the cut-off point between expansion and contraction.

3. Gold and silver prices fell to four-week lows on Monday, as investors continued to cut holdings of the precious metals on expectations of tighter U.S. monetary policy in the coming months.

Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $8.10, or 0.71%, to trade at $1,133.30 a troy ounce during U.S. morning hours. It earlier fell to $1,132.50, the lowest since October 5.

4. Oil prices fell on Monday as weak Chinese economic data fueled concerns about demand slowing there and record-high production in Russia exacerbated the global supply glut.

Brent crude futures (LCOc1), the global benchmark, traded down 50 cents at $49.06 a barrel at 1428 GMT (09:28 a.m. EDT), down 1.1 percent. U.S. futures were trading at $45.98 a barrel, down 60 cents or 1.3 percent on Friday's close.

5. The pace of growth in the U.S. manufacturing sector slowed in October, remaining at its lowest level since May 2013, according to an industry report released on Monday.

The Institute for Supply Management (ISM) said its index of National factory activity fell to 50.1, its fourth straight monthly decline, from 50.2 the month before. The reading was just above of expectations of 50.0, according to a Reuters poll of economists.

6. Manufacturing activity in the U.S. expanded at the slowest rate in more than two years in October, dampening optimism over the strength of the economy and fanning hopes the Federal Reserve could delay raising interest rates until next year, industry data showed on Monday.

In a report, the Institute for Supply Management said its index of purchasing managers fell to 50.1 last month from a reading of 50.2 in September. Analysts had expected the manufacturing PMI to dip to 50.0 in October.

7. Manufacturing activity in the U.K. expanded at the fastest rate since June 2014 in October, boosting optimism over the country’s economic outlook and supporting the case for higher interest rates, industry data showed on Monday.

In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 55.5 last month from a reading of 51.8 in September. Analysts had expected the index to decline to 51.3 in October.

 

 

 

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China's very important factory sector slowed for a third straight month in October, according to an official survey.

The government's purchasing managers' index hit 49.8 in October, according to the National Bureau of Statistics, unchanged from the previous month. Any number below 50 represents a deceleration in the manufacturing sector.

A separate survey conducted by Chinese media group Caixin showed manufacturing PMI at 48.3 in October, an improvement from 47.2 in September. The index has now been below 50 for eight consecutive months.

The official government manufacturing gauge is heavily weighted toward large enterprises, while the Caixin survey taps a smaller sample size and places greater emphasis on smaller firms.

The data underscore rising concerns about the health of the world's second-largest economy. Beijing reported last month that gross domestic product slid to 6.9% in the third quarter, the slowest pace since the financial crisis.

The factory sector, however, showed initial signs of stabilization. The Caixin survey showed that output and new orders picked up during October, and foreign demand appeared to be recovering.

"The PMIs are consistent with the view that conditions, although still subdued, are starting to show signs of improvement," said Julian Evans-Pritchard at Capital Economics.

Looking ahead, many economists expect Beijing to take further stimulus measures before the end of the year.

 

 

 

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October was the best month for Stocks in the last 4 years. The good momentum may continue to November.

U.S. stock futures are climbing back up from earlier lows. The S&P 500 is getting closer to an all-time high.

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Hot Turkey

 

Turkey's main Istanbul index is surging around 5% after the ruling AKP party won a surprise outright majority in parliamentary elections. The lira is also jumping versus the U.S. dollar.

"A period of prolonged political uncertainty has come to an end, hence the strong rally of the Turkish lira," explained Simon Smith, chief economist at FxPro.

Still, Turkey's economy remains vulnerable to any rise in U.S. interest rates because of its yawning current account deficit and some analysts say the gains may be short-lived.

 


2. Stocks to watch

Chipotle, HSBC: Chipotle (CMG) is in the spotlight Monday after the company temporarily closed dozens of restaurants in Washington and Oregon after an E.coli scare. Shares in the restaurant chain have dropped by about 15% since mid-October.

Shares in HSBC (HSBC) are dipping by around 1% in London as investors react to the bank's latest earnings results. Pre-tax profits in the third quarter rose 31% compared to the same period last year, but underlying revenues were down.

 


3. Earnings and economics

Visa (V), Estee Lauder (EL) and Clorox (CLX) are among the companies reporting ahead of the open.

Then Allstate (ALL), Avis Budget (CAR), AMC Entertainment (AMC) and Fitbit (FIT) will post earnings after the close.

On the economic side, the Institute for Supply Management will release its October manufacturing report at 10 a.m. ET.

 


4. International markets overview

 

European markets are not making any major moves in early trading, but there's a positive atmosphere in the markets.

Asian stock markets mostly ended with losses.

This comes as official data shows China's factory sector slowed for a third straight month in October.

China's Premier Li Keqiang also set a new medium term target for growth, saying the world's second biggest economy will need to expand by at least 6.5% per year over the next five years, according to state media. The Chinese government had been targeting 7% growth this year.

 

 

 

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