Solid US ISM non- manufacturing index and service sector

US ISM non-manufacturing Index was previously at 56.9 in September and on a consensus, was expected to mildly slip to 56.6, however strong but lesser than previous month. In October the ISM non-manufacturing index came in at 59.1 which surprised the market, coming solidly above expectations.  

There is a strong rebound service sector activity in October, with business activity climbing 2.8%, new orders bouncing back to 62.0% and new exports orders rising to a 3-month high to 54.5.

"The broad-based improvement across the survey components supports the expectation of a rebound in service sector payroll growth in Friday's October employment report. With the composite nonmanufacturing index at the three-month high and the second-strongest level since the recession, US service sector activity is veiwed as solid", says Barclays.