Upcoming Corporate Earnings Concerns Provide Excuse For Profit Taking

Economic Data
(CH) Swiss Sept Unemployment Rate: 2.8% v 2.8%e; Unemployment Rate Seasonally Adj: 2.9% v 3.0%e

(FI) Finland Aug Preliminary Trade Balance: €0M (flat) v €21M prior

(DE) Germany Aug Current Account: €11.1B v €12.7Be; Trade Balance: €16.3B v €15.2Be; Exports M/M: +2.4% v -0.6%e; Imports M/M: +0.3% v +0.2%e

(FR) Bank of France Sept Business Confidence: 92 v 91e

(CZ) Czech Aug Industrial Output Y/Y: -3.1% v 0.0%e; Construction Output Y/Y: -3.2 v -0.5% prior

(CZ) Czech Sept Unemployment Rate: 8.4% v 8.3%e

(CZ) Czech Aug Trade Balance (CZK): 16.9B v 15.3Be

(CH) Swiss Sept CPI M/M: 0.3% v 0.3%e; Y/Y: -0.4% v -0.4%e

(CH) Swiss Sept CPI EU Harmonized M/M: +0.7% v -0.3% prior; Y/Y: -0.3% v -0.5% prior

(RU) Russia Sept Light Vehicle & Car Sales: Y/Y: 10% v 15% prior

(TW) Taiwan Sept Total Trade Balance: $4.1B v $2.3Be; Total Exports Y/Y: +10.4% v +1.0%e; Total Imports Y/Y: +1.3% v -3.6%e

(EU) Euro Zone Oct Sentix Investor Confidence: -22.2 v -20.9e

(HK) Hong Kong Sept Foreign Currency Reserves: $301.2B v $298.2Bprior

(SG) Singapore Sept Foreign Reserves: $252.2B v $246.2B prior

Fixed Income
(NO) Norway sold NOK3B in 5.0% May 2015 Bonds; Yield 1.43% v 1.83% prior; bid-to-cover: 3.96x v 1.98x prior

(DE) Germany sold €2.42B in 6-Month BuBills; Avg Yield -0.0218% v -0.0147 prior; Bid-to-cover: 2.3x v 1.5x prior

Notes/Observations
Venezuela President Chavez wins 3rd 6-year term.

World Bank cuts Asian region growth estimates. AUD currency hits 3 month lows.

US Q3 earning season kicks off this week.

EU Finance Ministers meet in Luxembourg today. ESM expected to become operational.

German Chancellor Merkel visits Athens on Tuesday for talk with PM Samaras (Her first visit in over 3 years).

Equities
Indices: FTSE 100 -0.60% at 5,836, DAX -1.1% at 7,313, CAC-40 -1.1% at 3,418, IBEX-35 -0.90% at 7,879, FTSE MIB -1.4% at 15,653, SMI -0.40% at 6,646, S&P 500 Futures -0.30% at 1,451

Following the declines in the Shanghai composite, European equity indices are broadly lower, led by the weakness in the Italian FTSE MIB and German DAX. Overall, equities are declining, despite the stabilization being seen for the euro zone peripheral bond yields. Factors on which traders are focusing include upcoming Q3 earnings reports, EU finance minister meetings, slowing global growth and the strength in the US dollar (following Friday's US payrolls report).

Banks are broadly lower, led by Italian financials, as data from the Bank of Italy showed that bad loans continued to rise sharply in Aug. Additionally, Italian banks cut their exposures to sovereign debt in the month. Other laggards in the banking sector include Bankia, Commerzbank, Credit Agricole, RBS and SocGen. Greek banks have outperformed amid merger speculation in the sector and the decline in Greece's sovereign bond yields. In terms of corporate bonds, various peripheral companies have come to market on the session including Enel and Intesa.

UK-listed staffing firm Michael Page [MPI.UK] is lower by over 3%, after warning that its full year results could come in below market expectations. Materials technology firm Cookson [CKSN.UK] has lost over 13%, as the company warned on the outlook for its engineered ceramics unit. In Italy, RCS Mediagroup [RCS.IT] has gained over 3% on renewed speculation that Diego Della Valle is seeking to raise his stake. Belgium-listed KBC [KBC.BE] is lower by over 3%, as the firm issued its strategy update. Shares of PPR [PP.FR] have advanced by over 1% on speculation that the firm is examining options for its Fnac unit. Swiss retailer Charles Voegele [VCH.CH] is higher by more than 10%on takeover speculation.

FTSE 100 movers (Evraz -4.7%, Vedanta -3.5%, ENRC -3.3%, Melrose PLC -2.8%, Kazakhmys -2.8%)

CAC-40 movers (St-Gobain -2.6%, Renault -2.5%, Vallourec -2.5%, SocGen -2.4%, Alcatel-Lucent -2.2%; PPR +2.3%)

DAX movers (Commerzbank -2.6%, Lanxess -2.5%, Daimler -2.4%, Infineon -2.1%, ThyssenKrupp -2%)

IBEX-35 movers (Banco Popular -5.4%, Bankia -5.3%, Sacyr -3.2%, Acciona -2.5%, Acerinox -2.3%)

FTSE MIB movers (Fiat -2.7%, Intesa -2.4%, Banca Monte Paschi de Siena -2.2%, Fiat Industrial -2.1%)

SMI movers (Credit Suisse -2.2%, Richemont -2%, Adecco -1.9%, Swatch -1.9%, UBS -1.6%)