European stocks climbed, rebounding from their biggest decline in a month, as investors assessed the impact of a partial shutdown of the U.S. government.

The Stoxx Europe 600 Index added 0.8 percent to 312.86 at the close of trading, its biggest rally in three weeks, after a report showed that manufacturing activity in the euro area expanded for a third month in September. The equity benchmark fell by the most since Aug. 30 yesterday as U.S. politicians failed to agree on a compromise budget and Silvio Berlusconi pulled his ministers out of Italy’s coalition government.

U.S. lawmakers in Washington missed a midnight deadline to reach a compromise to continue funding the government. The shutdown will put as many as 800,000 federal employees out of work today, closing national parks and halting some government services. The Democrat-controlled Senate earlier voted 54-46 against a funding bill from the Republican-controlled House of Representatives because it made major changes to President Barack Obama’s health-care legislation.

The parties had no immediate plans for further negotiations. Some lawmakers expressed concern that the shutdown could lead to a deadlock over the need to raise the nation’s debt limit to avoid a default. The U.S. will run out of money to pay all of its bills at some point between Oct. 22 and Oct. 31 unless Congress increases the federal government’s borrowing authority, according to the Congressional Budget Office.

A report from Markit Economics showed that its euro-zone factory index fell to 51.1 in September, matching the preliminary estimate and the median forecast of economists. Readings greater than 50 mean that manufacturing activity increased.

National benchmark indexes advanced in every western-European market except for Britain. Germany’s DAX added 1.1 percent, while France’s CAC 40 Index increased 1.3 percent. The U.K.’s FTSE 100 slipped less than 0.1 percent.

Vestas jumped 6.8 percent to 148.50 kroner. Bank of America raised its price estimate to 180 kroner from 150 kroner, predicting that the company will pay off almost all its debt by 2015, earlier than the consensus forecast.

Wolseley Plc added 3.1 percent to 3,296 pence, its largest gain in more than five weeks. The world’s biggest distributor of plumbing and heating products said so-called trading profit in the 12 months through July climbed to 725 million pounds ($1.2 billion) from 665 million pounds a year earlier. Analysts had predicted earnings of 704 million pounds, according to the average of 20 estimates compiled by the company. Wolseley proposed a special dividend payout of 300 million pounds.

Unilever slipped 2.8 percent to 27.94 euro after saying sales growth slowed as trading in emerging markets deteriorated at a faster rate. Underlying group sales for the three months will rise 3 percent to 3.5 percent, the maker of Lipton tea and Dove soap said late yesterday in a statement. That compares with 5 percent growth in both the first half and second quarter.

West Texas Intermediate fell a third day as the U.S. government began its first partial shutdown in 17 years, threatening to slow the economy and curb fuel use.

Futures dropped as much as 1 percent after lawmakers failed to approve a funding bill. No further negotiations were immediately planned and both sides still disagree over raising the nation’s debt ceiling to avoid a first-ever default after Oct. 17. A government report tomorrow may show crude supplies rose last week as refineries idled units for seasonal maintenance, according to a Bloomberg survey.

WTI crude for November delivery fell 99 cents, or 1 percent, to $101.34 a barrel at 10:55 a.m. on the New York Mercantile Exchange. WTI decreased 0.5 percent yesterday to the lowest close since July 3. The volume of all futures traded was about 33 percent below the 100-day average. Prices increased 6 percent last quarter.

Brent oil for November settlement slipped $1.15, or 1.1 percent, to $107.22 a barrel on the London-based ICE Futures Europe exchange. Volume was 6.2 percent above the 100-day average. The European benchmark was at a premium of $5.88 to WTI futures, compared with $6.04 yesterday.

Contrary to expectations, after a partial suspension of the U.S. government's gold does not receive support in the form of a demand for " safe haven ." On the contrary, after experiencing a short-term upward trend line price of gold dropped significantly, and we can talk about the continuation of the trend that has occurred since the end of August.

At the moment, the price of gold has received support at the lows on September 18 - in 1290 dollars per troy ounce.

While it turns out that the political opposition in the United States led to a decline in demand for gold. This is explained by the fact that in a slowing economy (which is possible ) Fed policy will remain challenging, possibly up to 2014 , and the demand for gold will decline.

The weakening of the U.S. dollar did not result in a reversal of the price of gold - in contrast to the usual relationship , when the decline of the dollar leads to an increase in prices expressed in its raw material assets .

Recall that during the suspension of U.S. government agencies in the winter of 1995-1996 gold, while costing less than $ 400 per ounce, which added about 3 percent, and in the course of negotiations to raise the upper limit of the debt in 2011 , when the agreement was reached at the last moment , the price reached a historic high of $ 1,920 .

The cost of the October gold futures on COMEX today dropped to $ 1286.00 per ounce.

EUR/USD $1.3425, $1.3450, $1.3460, $1.3550, $1.3570, $1.3575, $1.3580, $1.3600

GBP/USD $1.6000, $1.6130, $1.6170

USD/JPY Y997.00, Y97.50, Y97.95, Y98.00, Y98.20, Y99.00, Y99.30, Y100.00

AUD/USD $0.9160, $0.9320, $0.9400

USD/CAD Cad1.0310

GBP/JPY Y157.00

EUR/GBP stg0.8350

NZD/USD $0.8260, Z$0.8345

EUR/JPY Y131.10, Y133.50

AUD/JPY Y93.10

EUR/CHF Chf1.2245

U.S. stock-index futures advanced as investors weighed the impact of the first partial government shutdown in 17 years.

Global Stocks:

Nikkei  14,484.72 +28.92 +0.20%

FTSE 6,441.02 -21.20 -0.33%

CAC 4,168.41 +24.97 +0.60%

DAX 8,629.72 +35.32 +0.41%

Crude oil $102.01 -0.31%

Gold $1316.80 -0.77%

Upgrades:

Nike (NKE) upgraded from Hold to Buy at Argus, target raised to $84

Downgrades:

Other:

Data

00:00 China Bank holiday

01:00 China Manufacturing PMI September 51.0 51.6 51.1

01:30 Australia Retail sales (MoM) August +0.1% +0.3% +0.4%

01:30 Australia Retail Sales Y/Y August +2.0% Revised From +1.9% +2.3%

01:30 Japan Labor Cash Earnings, YoY August +0.1% Revised From +0.4% -0.2% -0.6%

04:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.50%

04:30 Australia RBA Rate Statement

06:30 Australia RBA Commodity prices, y/y September -7.3% -3.1%

07:30 Switzerland Manufacturing PMI September 54.6 54.9 55.3

07:48 France Manufacturing PMI (Finally) September 49.5 49.5 49.8

07:53 Germany Manufacturing PMI (Finally) September 51.3 51.3 51.1

07:55 Germany Unemployment Change September 7 -5 25

07:55 Germany Unemployment Rate s.a. September 6.8% 6.8% 6.9%

07:58 Eurozone Manufacturing PMI (Finally) September 51.1 51.1 51.1

08:10 United Kingdom MPC Member Tucker Speaks

08:30 United Kingdom Purchasing Manager Index Manufacturing September 57.2 57.5 56.7

09:00 Eurozone Unemployment Rate August 12.1% 12.1% 12.0%

09:00 Japan Prime Minister Shinzo Abe Speaks

Euro traded higher against the dollar, although some of the previously lost positions gained . Note that the initial driver for the growth of European currency was the fact that the U.S. Senate refused to accept the budget law , as amended Republicans. Document against 54 senators voted for - 46. Earlier, the lower house for the third time this week returned the bill to the Senate. Further amendments provide for a delay prescriptions millions of Americans to purchase health insurance, and the abolition of subsidies for insurance for congressmen and members administratsii.V therefore administration of U.S. President has ordered a freeze of several government agencies. The decision to freeze the work of federal agencies directly affect about 800,000 state employees , who went on unpaid leave . Among other things , suspended the work of NASA, except the flight control center .

Add that little pressure on the euro was data for Germany , which showed that by the end of last month, the number of people who registered as unemployed has increased significantly , contrary to the expectations of experts on a slight decline .

According to the report, the seasonally adjusted number of unemployed rose in September by 25,000 people, compared with the upwardly revised figure for the previous month at 9,000 . Note that according to the average forecasts of experts the value of this indicator was down by 5 thousand Given this unexpected increase in the adjusted unemployment rate in Germany rose to 6.9 % , down from 6.8 % in August. It was expected that the unemployment rate will remain unchanged.

Also negatively impacted by currency report on the euro area, which showed that up to September Eurozone manufacturing sector continued to expand, albeit at a slower pace than was seen in the previous month. According to the report, the purchasing managers' index for the sphere of production fell in September to a level of 51.1 , compared with 51.4 in August ( 26 -month maximum). Note that the final result was in line with the preliminary estimate , released last month, and also confirmed the predictions of experts. We add that , in spite of the recession , the manufacturing sector remains above the 50 level for the third month in succession.

The British pound strengthened against the dollar, responding thus to end the work of the U.S. government . Note that the dynamics of trading almost did not affect data on the manufacturing sector.

The report showed that the seasonally adjusted purchasing managers' index for the manufacturing sector fell last month to a level of 56.7 , compared with a revised downwards index for August at 57.1 (initially reported 57.2 ) . Recall that the result for August was the best two and a half years. Economists had expected up to September this indicator will rise to the level of 57.5 . We add that the index is still above the 50 mark that separates growth from contraction for the sixth month in a row .

Meanwhile, data showed that the volume of new orders in the manufacturing sector continued to grow strongly , with significant contribution from the domestic market. With this in mind, the company significantly increased its staff by showing with the fastest pace since May 2011 , in order to cope with the increased workload .

EUR / USD: during the European session, the pair rose to $ 1.3588 , and then fell to $ 1.3535

GBP / USD: during the European session, the pair rose to $ 1.6260

USD / JPY: during the European session, the pair fell to Y97.65

At 14:00 GMT the U.S. will release the ISM manufacturing index for September. At 23:50 GMT Japan will report on changes in the monetary base in September.

EUR/USD

Offers $1.3700, $1.3650, $1.3620, $1.3600

Bids $1.3500, $1.3475/70, $1.3455/50

GBP/USD

Offers $1.6320, $1.6300, $1.6280, $1.6270

Bids $1.6200, $1.6150, $1.6120, $1.6100

AUD/USD

Offers $0.9550, $0.9500, $0.9480, $0.9450

Bids $0.9350, $0.9320, $0.9300, $0.9280

EUR/JPY

Offers Y134.00, Y133.80, Y133.45/50, Y133.20/25

Bids Y132.00, Y131.60, Y131.50, Y131.00

USD/JPY

Offers Y99.00, Y98.80, Y98.45/50, Y98.20

Bids Y97.50, Y97.40, Y97.00

EUR/GBP

Offers stg0.8460/65, stg0.8450, stg0.8420, stg0.8390/00

Bids stg0.8320, stg0.8300, stg0.8280, stg0.8250, stg0.8200

European stocks rose , rebounding while from the biggest decline this month as investors assessed the impact of the partial interruption of the U.S. government. U.S. index futures and Asian shares also rose .

Note that the administration of U.S. President Barack Obama on Monday night ordered federal agencies to begin partial " ordered the suspension " of the federal government, because Congress did not approve funding for the next fiscal year, which began Oct. 1 .

Stoxx Europe 600 Index added 0.3 percent, while reaching the level of 311.36 .

The course of trading was also influenced by the data for the euro area , which showed that up to September Eurozone manufacturing sector continued to expand, albeit at a slower pace than was seen in the previous month.

According to the report, the purchasing managers' index for the sphere of production fell in September to a level of 51.1 , compared with 51.4 in August ( 26 -month maximum). Note that the final result was in line with the preliminary estimate , released last month, and also confirmed the predictions of experts. We add that , in spite of the recession , the manufacturing sector remains above the 50 level for the third month in succession.

Meanwhile, data showed that the sub- index of production and new orders also continued to expand, which is celebrated for the third month in a row, although the pace of growth was slightly slower than in August , when it was recorded 27 - month peak . We add that the expansion of the manufacturing sector was

seen in all euro area countries except France and Greece.

Wolseley shares rose 2.3 percent to 3,270 pence . The world's largest distributor of water supply systems and products for heating said that the so -called trading profit for the 12 months to July rose to 725 million pounds ($ 1.2 billion ) from 665 million pounds a year earlier . Analysts have predicted that the profit will be at the level of 704 million pounds. In addition, the part of Wolseley proposed special dividend of 300 million pounds.

Cost Unilever fell 3.4 percent to 27.77 euros after the company said a slowdown in sales growth as well as the strengthening of the euro led to a further slowdown in emerging markets. Base sales for the third quarter is projected to have grown by 3-3.5 percent, compared with an increase by 5 percent in the first and second quarter.

At the moment :

FTSE 100 6,449.89 -12.33 -0.19 %

CAC 40 4,174.89 +31.45 +0.76 %

DAX 8,646.99 +52.59 +0.61%

EUR/USD $1.3425, $1.3450, $1.3460, $1.3550, $1.3570, $1.3575, $1.3580, $1.3600

GBP/USD $1.6000, $1.6130, $1.6170

USD/JPY Y997.00, Y97.50, Y97.95, Y98.00, Y98.20, Y99.00, Y99.30, Y100.00

AUD/USD $0.9160, $0.9320, $0.9400

USD/CAD Cad1.0310

GBP/JPY Y157.00

EUR/GBP stg0.8350

NZD/USD $0.8260, Z$0.8345

EUR/JPY Y131.10, Y133.50

AUD/JPY Y93.10

EUR/CHF Chf1.2245

Asian stocks rose, with the regional benchmark index extending its September rally, after Japanese Prime Minister Shinzo Abe said the nation will raise its sales tax as planned. Gains were limited by the first partial U.S. government shutdown in 17 years.

Nikkei 225 14,484.72 +28.92 +0.20%

Hang Seng 22,859.86 -347.18 -1.50%

S&P/ASX 200 5,206.8 -12.08 -0.23%

Shanghai Composite 2,174.66 +14.64 +0.68%

NSK Ltd., a Japanese bearings maker, jumped 3.3 percent after boosting its net-income forecast by 13 percent.

Ube Industries Ltd., a chemical maker, soared 6 percent in Tokyo.

00:00 China Bank holiday

01:00 China Manufacturing PMI September 51.0 51.6 51.1

01:30 Australia Retail sales (MoM) August +0.1% +0.3% +0.4%

01:30 Australia Retail Sales Y/Y August +2.0% Revised From +1.9% +2.3%

01:30 Japan Labor Cash Earnings, YoY August +0.1% Revised From +0.4% -0.2% -0.6%

04:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.50%

04:30 Australia RBA Rate Statement

The dollar fell to the lowest since Jan. 3 versus the pound as the U.S. government sped toward a partial shutdown with no sign of a last-minute deal on funding. The Senate voted 54-46 to reject the House’s third version of a short-term extension of government funding that delays the 2010 Affordable Care Act, putting pressure back on House Speaker John Boehner and the Republicans. Barring a last-minute compromise or concession, the U.S. appears headed for its first shutdown in 17 years. The decision will come during trading hours in Asia today.

The U.S. currency dropped against most major peers last month as the wrangling between Senate Democrats and House Republicans threatened to stunt growth at a time when the central bank is weighing a tapering of stimulus.

The yen slid after a report showed confidence among Japan’s large manufacturers rose to the highest since the early stages of the global credit crisis in 2007, with Prime Minister Abe due to decide today whether the economy is strong enough to sustain a planned sales-tax rise next year. The quarterly Tankan index for big manufacturers climbed to 12 in September from 4 in June, the BOJ said today. That exceeded the 7 median estimate of economists surveyed by Bloomberg News.

EUR / USD: during the Asian session the pair rose to $ 1.3550

GBP / USD: during the Asian session, the pair rose to $ 1.6245

USD / JPY: during the Asian session the pair traded in the range of Y98.00-75

There is a full data calendar on both sides of the Atlantic Tuesday, although the release of official US government data is likely to be delayed as the partial government shutdown kicked in at midnight DC time. The European calendar starts at 0600GMT, when the German August ILO data is released. At 0700GMT, French September car registration data will cross the wires. Possibly the main releases of the morning session include the euro area final manufacturing PMI data. The first release comes at 0713GMT when Spanish data crosses, followed by Italy at 0743GMT, France at 0748GMT, Germany at 0753GMT and the consolidated euro area data at 0758GMT. Also due at 0755GMT are the official German unemployment numbers. At 0800GMT, the German August VDMA machinery orders data will cross the wires. German Bundesbank Board member Andreas Dombret will speak on the "Holistic Approaches to Solve the Euro Crisis" during Global Economic Symposium 2013, in Kiel, Germany, at 0845GMT. The last scheduled Euro area data is expected at 0900GMT, when the August unemployment data will cross the wires.

GOLD 1,328.40 -10.00 -0.75%

OIL (WTI) 102.29 -0.58 -0.56%

Nikkei 225 -2,06 14,455.8 -304,27%

Hang Seng 22,859.86 -347,18 -1,50%

S & P / ASX 200 5,218.88 -88,18 -1,66%

Shanghai Composite 2,174.66 14,64 0,68%

FTSE 100 6,462.22 -50.44 -0.77%

CAC 40 4,143.44 -43.33 -1.03%

DAX 8,594.4 -67.11 -0.77%

DJIA 15,129.70 -128.57 -0.84%

S&P 500 1,681.63 -10.12 -0.60%

NASDAQ 3,771.48 -10.12 -0.27%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3521 +0,26%

GBP/USD $1,6184 +0,91%

USD/CHF Chf0,9048 -0,60%

USD/JPY Y98,23 -0,75%

EUR/JPY Y132,83 -0,49%

GBP/JPY Y158,98 +0,17%

AUD/USD $0,9323 -0,43%

NZD/USD $0,8299 +0,13%

USD/CAD C$1,0315 +0,04%

00:00 China Bank holiday

01:00 China Manufacturing PMI September 51.0 51.6 51.1

01:30 Australia Retail sales (MoM) August +0.1% +0.3% +0.4%

01:30 Australia Retail Sales Y/Y August +2.0% Revised From +1.9% +2.3%

01:30 Japan Labor Cash Earnings, YoY August +0.1% Revised From +0.4% -0.2% -0.6%

04:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50%

04:30 Australia RBA Rate Statement

06:30 Australia RBA Commodity prices, y/y September -7.3%

07:30 Switzerland Manufacturing PMI September 54.6 54.9

07:48 France Manufacturing PMI (Finally) September 49.5 49.5

07:53 Germany Manufacturing PMI (Finally) September 51.3 51.3

07:55 Germany Unemployment Change September 7 -5

07:55 Germany Unemployment Rate s.a. September 6.8% 6.8%

07:58 Eurozone Manufacturing PMI (Finally) September 51.1 51.1

08:10 United Kingdom MPC Member Tucker Speaks

08:30 United Kingdom Purchasing Manager Index Manufacturing September 57.2 57.5

09:00 Eurozone Unemployment Rate August 12.1% 12.1%

09:00 Japan Prime Minister Shinzo Abe Speaks

13:00 U.S. Manufacturing PMI (Finally) September 52.8 52.8

14:00 U.S. Construction Spending, m/m August +0.6% +0.5%

14:00 U.S. ISM Manufacturing September 55.7 55.3

15:55 Canada Gov Council Member Macklem Speaks

20:30 U.S. API Crude Oil Inventories September -0.1

20:50 Japan Monetary Base, y/y September 42.0% 45.3%