Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Trade Deficit Narrowed in September [Wall Street Journal]
Summary: The U.S. trade deficit shrank 6.8% to $64.3 billion in September, but the widening trade gap with China cast a pall on the good news. The fall-off in oil prices eased the U.S. import figure and exports continued to be strong, but the deficit with China hit a record $22.96 billion in September, up $1 billion in only a month. The gap with China, combined with the fact that the overall deficit -- though shrinking -- is still among the largest in history, could prompt the newly Democratic Congress to get tough on trade policy. The Democrats advocate legislation that protects workers' rights and the environment in trade talks with other countries, an approach that would contrast sharply with what Michigan Rep. Sander Levin [D] calls the "hands off, anything goes" approach of the Bush administration.
Related links: Press Release. Commentary: U.S. Trade Deficit: Not as Ominous as it Sounds • It's Still The Economy, Stupid • China's Trade Surplus Keeps Growing and Growing • Dollar Rangebound as Trade Deficit Higher Than Expected
Potentially impacted stocks and ETFs: Euro Currency Trust ETF (NYSEARCA:FXE)
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