US 10YR FUTURE TECHS: (Z5) MA Studies Highlight A Bullish Structure

(MNI) London - Following talks with Chinese Premier Li Qiang on the sidelines of the UN General Assembly in New York City, European Commission President Ursula von der Leyen posts on X regarding the "good and frank" meeting, saying the two discussed trade matters, and that "Europe’s concerns regarding export controls, market access, and overcapacity are well known. I appreciate China’s willingness to engage with us in a spirit of mutual understanding." 

• VdL: "On Russia’s war of aggression against Ukraine, I welcomed Premier Li’s statement that both Europe and China share an interest in maintaining world peace. I explained Europe’s commitment to cutting off the revenue streams that fuel Russia’s war. I expressed my request to China to use its influence to help bring an end to the killing and encourage Russia to go to the negotiating table. Time for diplomacy is now. It would send a strong signal to the world."
• The talks are the highest-level discussion between EU and Chinese leaders since the EU-China summit over the summer, which was seen to have achieved little in terms of overcoming divisions on issues of geopolitics, trade and climate change. 

• After making modest gains early Wednesday, stocks are trading weaker - extending lows ahead midday as profit taking gathered momentum ahead of Thursday's heavy economic data and continued Fed speaker schedule.
• Currently, the DJIA trades down 61.39 points (-0.13%) at 46236.27, S&P E-Minis down 16 points (-0.24%) at 6699.5, Nasdaq down 64.4 points (-0.3%) at 22513.08.
• A mix of Communication Services, Mining and Technology sector shares underperformed in the first half: after down-revising their third-quarter projections, Freeport-McMoRan fell -10.36%;  Axon Enterprise -4.62%, Synopsys -4.30%, KKR & Co -4.26%, IDEXX Laboratories -3.90%, Electronic Arts -3.68%, Take-Two Interactive -3.59% and Adobe -3.32%.
• On the positive side, Energy and Consumer Discretionary sector shares led gainers in the first half, oil and gas stocks buoyed the former as crude prices climbed higher (WTI +1.19 at 64.60): Diamondback Energy +3.74%, APA Corp +3.31%, Phillips 66 +3.15%, Devon Energy +2.96% and ConocoPhillips +2.71%.
• Discretionary sector shares supported by Tesla +3.14%, Ross Stores +2.88%, Lennar Corp+2.37% and General Motors +1.76%.

August building permits were revised up in the final reading to 1,330k (1,312k prelim).

• That's still a drop from 1,362k in July for a cycle low (weakest since 2019, ex-pandemic 2020).
• Single-family home permits were basically unrevised at 858k (856k prelim), with multi-units now estimated at 472k (456k prelim).
• This could on the margins lead to a small uptick in residential investment estimates, including the Atlanta Fed GDPNow reading due out Friday - it currently estimates -6.3% Q/Q SAAR residential investment, which had been downgraded from -4.6% after the preliminary housing data (starts could yet be revised in the September report due out October 17).
• But overall, there are no clear signs of a nascent pickup in residential investment activity.