Societe Generale in its early Monday economic news summary pointed out:

-- The euro retreats with Geman Bund yields on weak PMIs, 2s/10s curve disinverts. Germany's mfg PMI falls to 40.3 in September with new orders at 37.2, services dip to 47.2 with new orders at 44.0. France services plummet to 47.7 from 53.1 with new orders at 48.1, mfg little changed at 44.0 with new orders at 39.7. United Kingdom mfg dips to 51.5 with new orders at 51.8, services drop to 52.8 with new orders at 54.3.

-- China's central bank cuts 14-day reverse repo rate by 10bps to 1.85%. Stimulus hopes raised by a special press conference on the economy on Tuesday by Governor Pan Gongsheng, CSRC's Wu Qing and NFRA's Li Yunze.

-- Week ahead: United States PCE inflation on Friday. European Central Bank inflation expectations on Friday. Reserve Bank of Australia is forecast to hold, Sweden's Riksbank and the Swiss central bank are forecast to cut 25bps on Wednesday/Thursday. Hungary's central bank is forecast to cut 25bps on Tuesday and Czech central bank to reduce by 25bps on Wednesday, Mexico's central bank by 25bps on Thursday.

-- CFTC foreign exchange positioning: Euro net longs cut to 10.3% of OI. Yen longs nearly double to 28.5% pre-Bank of Japan, sterling longs trimmed to 29.6%, Australian dollar shorts quadruple to 23.6%, Canadian dollar shorts raised to 28.5% and Swiss franc shorts upped to 29.2%. Mexico's peso longs plummet to 5.9%.

-- Nikkei closed, Euro Stoxx futures +0.3%, EUR 10-year IRS -4bps at 2.41%, Brent crude +0.7% at $75/barrel, Gold +0.2% at $2,628/oz.