European Economics Preview: Eurozone Final Factory PMI Data Due

Gold Holds Steady On Softer Dollar

Gold prices held steady on Monday as the dollar declined against major rivals ahead of key U.S. data due this week, which will provide clues for the health of the economy in the third quarter.

Spot gold edged up 0.2 percent to $1,664.42 per ounce while U.S. gold futures were marginally lower at $1,671.45.

The dollar index fell for a fourth consecutive day after the British government reversed plans to cut the highest rate of income tax that helped to spark a rebellion in her party and turmoil in financial markets.

The U.K. government has decided to abandon its plan to scrap the 45 percent tax rate, which was announced just 10 days before, after coming under severe criticism for such a relaxation for the high earners at the time of rising living costs.

Benchmark 10-year U.S. Treasury bond yields were at 3.797 percent. In remarks prepared for a speech in New York on Friday, Fed Vice Chair Lael Brainard warned that the risk of additional inflationary shocks cannot be ruled out and that monetary policy will need to be restrictive for some time.

Chicago Business Barometer Unexpectedly Indicates Contraction In September

Chicago-area business activity unexpectedly contracted in the month of September, according to a report released by MNI Indicators on Friday.

MNI Indicators said its Chicago business barometer slumped to 45.7 in September from 52.2 in August, with a reading below 50 indicating contraction. Economists had expected the business barometer to edge down to 51.8.

With the much bigger than expected decrease, the Chicago business barometer entered contraction territory for the first time since June 2020.

The notable pullback by the headline index came as the production, new orders, order backlogs, employment and supplier deliveries indicators all fell to summer 2020 lows.

The production index tumbled to 44.5 in September from 54.9 in August, as continued supply-chain issues alongside slowing new orders contributed to lower production.

The new orders index also slid to 42.2 in September from 48.9 in August, while the order backlogs index plunged to 41.9 from 54.5.

MNI Indicators noted the employment index saw the starkest decline, diving to 40.2 in September from 54.6 in August.

The supplier deliveries index also slipped to a two-year low of 59.8 in August from 62.1 in August, as deliveries remained unstable and lead times long.

Meanwhile, the report also showed the prices paid index slumped to 74.1 in September from 81.8 in August, hitting the lowest level since November 2020.

Axsome Says Sunosi Met Primary Endpoint In SHARP Study

Biopharmaceutical company Axsome Therapeutics, Inc. (AXSM) announced Monday that Sunosi met the primary endpoint in the SHARP study and significantly improved cognitive function, measured using the Digit Symbol Substitution Test subtest of the Repeatable Battery for the Assessment of Neuropsychological Status (DSST RBANS), as compared to placebo in cognitively impaired patients with excessive daytime sleepiness (EDS) associated with obstructive sleep apnea (OSA).

Superiority of Sunosi as compared to placebo was further demonstrated using patient-reported measures of cognitive function. In the study, Sunosi replicated previous findings by significantly reducing EDS symptoms as compared to placebo.

SHARP (Solriamfetol’s Effect on Cognitive Health in Apnea Participants During a Randomized Placebo-controlled Study) was a randomized, double-blind, placebo-controlled, crossover, multicenter, trial in 59 patients with EDS associated with OSA, and impaired cognitive function.

Patients were all treated with Sunosi for 2 weeks, and with placebo for 2 weeks, with the treatment periods separated by 1 week of down-titration and washout.

LogicBio To Be Bought By Alexion, AstraZeneca Rare Disease

LogicBio Therapeutics, Inc. (LOGC), a company focused on gene delivery and editing platforms to treat rare diseases, said on Monday that it has inked a deal to be acquired by Alexion, AstraZeneca Rare Disease

Alexion, through a subsidiary, will start a cash tender offer to acquire all shares of LogicBiofor $2.07 per share.

Alexion, AstraZeneca Rare Disease, is a group within AstraZeneca focused on rare diseases. The proposed acquisition is expected to support Alexion, AstraZeneca Rare Disease’s growth in genomic medicines.

Alexion plans to close the deal in four to six weeks. Boards of both the companies have approved the deal.

Marc Dunoyer, CEO of Alexion, AstraZeneca Rare Disease, said: “…LogicBio’s people, experience and platforms provide new scientific capabilities by adding best-in-class technology and expertise to our genomic medicine strategy. The scientific collaboration between Alexion and AstraZeneca has been a substantial area of focus since last year’s acquisition and the addition of LogicBio will expand this foundational work.”

European Economics Preview: Eurozone Final Factory PMI Data Due

Final manufacturing Purchasing Managers’ survey results from the euro area and the UK are the major reports due on Monday.

At 2.30 am ET, the Federal Statistical Office is scheduled to issue Swiss consumer price data for September. Inflation is forecast to remain unchanged at 3.5 percent.

At 3.00 am ET, final foreign trade from Hungary, unemployment from Austria and manufacturing PMI from Poland and the Netherlands are due.

At 3.15 am ET, S&P Global publishes Spain’s manufacturing PMI data for September. Economists expect the factory PMI to fall to 49.2 from 49.9 a month ago.

At 3.45 am ET, Italy’s manufacturing PMI data is due. The manufacturing PMI is expected to fall to 47.8 in September from 50.6 in August.

Thereafter, S&P Global releases France and Germany’s manufacturing PMI survey results at 3.50 am and 3.55 am ET, respectively.

At 4.00 am ET, Eurozone final manufacturing PMI data is due. The final PMI is seen at 48.5 in September, down from 49.6 in the previous month.

At 4.30 am ET, UK S&P/CIPS manufacturing PMI survey results are due. The final reading is seen at 48.5 in September, unchanged from the flash estimate.