ECB day today

•     Eurozone PMIs are weak

–    Eurozone overall PMI revised down as new orders contract for the first time in a year

–    German manufacturing PMI slips into contractionary territory

•     US ISM disappoints, although it remains highest in the world

–    Auto sales also slipped in Sep, following the sharp rise in August

–    US stocks, bond yields fell sharply, as did Fed funds expectations

–    USD fell vs most currencies

•     Market reaction seems overdone to me; I expect it to reverse

•     ECB day today

–    Draghi to announce details of ECB’s asset-backed security purchase program

–    How much, what kind of collateral and what ratings they will buy are keys

–    Will they require government guarantees to buy riskier ABS?

–    Market wants to know if they are willing to buy sovereign bonds if necessary

•     Today:

–    Eurozone: PPI for August

–    UK:  construction PMI for Sept expected to decline

–    US: factory orders for August, initial jobless claims