Supply chain bottlenecks hold back German production

US stocks inked yet another set of records as the positive sentiment in markets continues, albeit with meagre gains on Monday. The DOW led, up 0.29% while the S&P and the NASDAQ rose 0.09% and 0.07% respectively. Yield on 10Y USTs closed higher at 1.4897%.

German industrial production contracted in September as supply chain bottlenecks continue to weigh on production; the forecast had been for a 1% gain following August’s 3.5% slump. Exports also slumped in September against an expected 0.5% gain, although this was slightly balanced by slower imports to push the trade balance to €13.2 billion, slightly higher than August’s €13.0 billion. Yield on 10Y DBRs closed higher at -0.243% while the euro was slightly firmer at $1.1587.

Asia stocks traded mostly lower on Tuesday with the NIKKEI leading losses, 0.75% lower. The ASX also closed weaker, down 0.24% as did the HANG SENG at 0.03% weaker. The CSI managed a gain however, closing 0.20% up.

The Russian stock market completed trading in the green along with oil. The Moscow Exchange index grew by 1.04% while the RTS index increased by 0.94%. Gains were led by Tatneft (MCX: TATN), Surgutneftegaz (MCX: SNGS), Rosneft (MCX: ROSN).

Oil eked out a gain on Monday as Saudi Arabia is raising prices, but the rally cooled after the U.S. signaled measures to ease oil and gasoline prices. WTI rose 0.8% to $81.93 per barrel while Brent gained 0.8% to $83.43.