Recap 10-7-11

Main Items:

· US Nonfarm Payrolls improved to 103k last month vs 60k exp and 0k prev. UE rate was stable at 9.1% as exp. Earnings rose 0.2% as exp, but hours improved to 34.3 vs 34.2 exp and prev.

· Canadian Employment jumped to 60.9k last month vs 15k exp and -5.5k prev, taking the UE rate down to 7.1% vs 7.3% exp and prev. Private sector jobs actually declined by 14.9k, so government/educational employment likely drove the surprise.

· Fitch downgraded Spain and Italy so that it is inline with S&P and Moody’s, with a negative outlook. Fitch maintained Portugal at BBB- with negative watch.

Overseas:

· Australia Construction PMI declined to 30 in Sept vs 32.1 prev

· UK PPI Output Core rose to 3.8% YoY vs 3.7% exp and 3.6% prev

Commentary:

A contrarian, bullish risk assets item that suggests we may have seen the short term lows the past week:

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