Global

October Global Factory Growth Matches September's Modest Pace: PMI. Global manufacturing activity increased last month at the same modest pace as in September but factories produced a surplus of goods for the first time in at least seven years, a report showed on Monday. JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI), produced with Markit, held steady at 52.2 in October. That was one of the lowest readings this year but did come in above the 50 mark that separates growth from contraction for the 23rd month in a row. The new orders sub-index remained at 52.9 but the stocks of finished goods went above 50 for the first time in the index's seven-year history. (Reuters)

Asia

China's Final HSBC PMI Hits 3-Month High, But Risks Remain. Growth in China's vast factory sector rose to a three month high in October as smaller firms saw more orders, a private survey showed on Monday, easing fears of a sharp slowdown but still pointing to a sluggish economy that is losing momentum. The final HSBC/Markit Manufacturing Purchasing Managers' Index (PMI) edged up to 50.4 in October, up from the September's reading of 50.2, but unchanged from a preliminary reading. Growth in new orders and new export orders – proxies for domestic and foreign demand, respectively – fell to their lowest in four to five months, but managed to hold above the 50-point level that separates growth from contraction on a monthly basis. The level of output in factories also fell to a five-month low of 50.7. (Reuters)

China October Services Growth Slips To Nine-Month Low, Property Weighs. China's services sector grew at its slowest pace in nine months in October as a cooling property sector weighed on demand, a survey showed on Monday, adding to signs of fragility in the world's second-largest economy. The official non-manufacturing Purchasing Managers' Index (PMI) fell to 53.8 in October from September's 54.0, which was the weakest reading since January, the National Bureau of Statistics said. But it was still comfortably above the 50-point mark that separates growth from contraction on a monthly basis. The sub-index of new orders inched up to 51.0 in October from September's 49.5, which was the lowest since December 2008. (Reuters)

Indian Manufacturing Expands At A Modest Pace In October, Hiring Restarts: PMI Survey. Indian factory activity expanded at a modest pace in October, as stronger demand led manufacturers to add jobs for the first time in four months and allowed them to raise prices, a business survey showed on Monday. The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 51.6 in October from 51.0 in September. The index has now been above the 50 level that indicates an expansion in activity for a year. The new orders sub-index rose to 53.0 from September's 51.3 on robust overseas demand that helped push output higher. That prompted manufacturers to add jobs for the first time since June. (Reuters)

Fitch Joins Moody’s Raising Vietnam Debt Rating This Year. Vietnam’s credit rating was raised to three levels below investment grade by Fitch Ratings, which said the country’s macroeconomic stability has improved. The company raised its rating on Vietnam’s long-term foreign and local currency debt to BB- from B+, and revised the outlook to stable from positive, it said in a statement today. Standard & Poor’s already rates Vietnam at BB-, while Moody’s Investors Service raised its assessment in July to B1, four steps below investment grade. (Bloomberg)

USA

U.S. Factory Activity Back At Three-And-A-Half-Year High, Auto Sales Rise. U.S. manufacturing activity unexpectedly accelerated in October and automobile sales were strong, easing concerns of a significant moderation in economic growth in the fourth quarter. The Institute for Supply Management said its index of national factory activity rose to 59 last month from 56.6 in September. The index is now within spitting distance of its cycle high of 59.3 reached in February 2011. Any reading above 50 indicates an expansion in activity. Back in the United States, automakers reported their strongest October sales in a decade on robust demand for brawny pickup trucks and roomy sport utility vehicles, even though top-seller General Motors Co missed expectations. Sales rose 6.1% from a year ago to 1.28 million units, pushing the annual rate to a sturdy 16.46 million units. (Reuters)

U.S. Construction Spending Weaker Than Expected In September. U.S. construction spending fell for a second straight month in September as investment in both private and public projects declined, suggesting the third-quarter growth estimate could be revised lower. Construction spending dropped 0.4% to an annual rate of $950.9b, the Commerce Department said on Monday. August's construction outlays were revised to show a 0.5% fall instead of the previously reported 0.8% decline. Economists polled by Reuters had forecast construction spending rising 0.7%. (Reuters)

U.S. Borrowing Needs At Lowest Since 2007 As Economy Strengthens. The U.S. Treasury Department said its borrowing from October through December will be the lowest for the period in seven years as the economy gains momentum, boosting tax receipts. The Treasury plans to issue $232b in net marketable debt in the final three months of this year, about $45b more than projected three months ago and the lowest since 2007, it said today in Washington. Next quarter, the Treasury plans to borrow $209b, the department said. (Bloomberg)

Europe

Eurozone Manufacturing Growth Slows, Survey Shows. Manufacturing growth in the eurozone was slower than expected in October with price cutting failing to lift orders, according to a survey. The latest Markit Purchasing Managers' Index of factory activity was 50.6, better than September's 50.3. But, although any reading above 50 indicates growth, the figure was below initial estimates for October. Germany returned to modest growth, and Spain saw its eleventh straight month of growth. France and Italy contracted. (BBC)

UK Manufacturing Growth At Three-Month High. The UK manufacturing activity grew at its fastest pace for three months in October, despite a sharp fall in export orders, a survey has indicated. The Markit UK manufacturing Purchasing Managers' Index (PMI)rose to 53.2 in October from 51.5 in September. A figure above 50 indicates growth. Despite the rise, export orders fell at their fastest pace since January 2013. Markit said "a near stagnant" eurozone economy was to blame for the drop in export orders. (BBC)

Currencies

Dollar At Highest Levels Since 2007 Against Japanese Yen. The U.S. dollar shot even higher against the Japanese yen on Monday, hitting levels not seen since 2007. The dollar’s move higher against the yen comes in the wake of last week’s strong data out of the U.S. and a big stimulus package announced by Japan. On Monday, the dollar surged as much as 1.5% to before rising to ¥113.88 from ¥112.33 late Friday. The yen also tumbled against the British pound, dropping 1.38% to ¥182.12 and the euro , down 1.1% to ¥142.32. The ICE Dollar Index rose to 87.366 from 86.907. The euro fell to $1.2485 from $1.2526 late Friday, breaking the Oct. 3 low of $1.2501. The British pound slipped to $1.5976 from $1.5999 late Friday, after manufacturing PMI for the U.K. beat expectations. (Market Watch)

Commodities

Oil Slips Towards $85 On Dollar Strength. Brent crude oil slipped towards $85 a barrel on Monday as a stronger dollar outweighed evidence of lower oil production by OPEC ahead of the producer group's meeting later in November. Brent crude for December delivery was down 40 cents at $85.46 a barrel by 1430 GMT. The oil benchmark fell more than 9% in October, hitting its lowest in almost four years at $82.60 on Oct. 16. U.S. crude was down 15 cents at $80.39 per barrel after losing more than 11% last month. (Reuters)

Gold Hovers Near 4-Year Low As Crude Drops, Dollar Rallies. Gold fell on Monday, hovering near a four-year low, as the combination of tumbling crude oil prices and a U.S. dollar rally extended gold's losses to a fourth consecutive session. Spot gold was down 0.5% to $1,168.60 an ounce by 2:40 p.m. EST (1940 GMT), having earlier fallen to as low as $1,161.70. Among other precious metals, silver was down 0.3percent at $16.10 an ounce. Spot platinum was up 0.6% to $1,236 an ounce and spot palladium was up 1.3% to $798.50 an ounce. (Reuters)