Yesterday’s UK public finance figures continue to suggest that the Chancellor will have to revise his projections for public borrowing higher in the forthcoming Pre-Budget Report. A severe fiscal squeeze could be underway in less than a year.

Other economic data revealed the narrow M0 measure of the money supply is still being kept high by the Bank of England’s asset purchases, but the broad money aggregates remain much weaker. That said September’s figures on money and lending were the most encouraging in several months.

Stocks could trade a bit choppy today as investors react to a tidal wave of earnings news and watch fluctuations in the dollar and other risk assets. Of particular note will be the details of the Bank of England minutes.

The UK market has opened up 0.4% and the European markets have followed suit. U.S futures markets are pointing to a slightly negative start when their markets resume trading this afternoon. Futures currently forecast the Dow to open up down 5 points; the Nasdaq and S&P to open up flat.

Sources: Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times: Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia: GaveKal:

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