An eventful Asian session which saw equity markets continuing to print multi year highs with the Nikkei leading the way (Nikkei +1.21%, Hang Seng +0.03%, Shanghai Comp +0.15% & S&P/ASX + 0.42%). The news wires were busy with Fed's Bostic saying he's not sure the Fed will raise rates in December, Chinas Trade Balance coming in lower than expected & an ECB story about QE reduction. The Euro had an initial wobble on the QE news but later recovered as Dollar weakness became the main focus. The DXY fell another 7 pips but is finding support from Wednesdays low. Bond markets were mixed with US Tens stuck in a 2.5 tick range on very low volume, with just 38k TYZ7s changing hands. Aussie Bonds printed fresh weekly highs at the beginning of the session only to drift a little lower from then on, while JGB's came close to the weekly low early on and then rallied for the remainder of the session to finish at the days highs. Elsewhere, Gold remained firm, gaining a further $1.30 and Oil recovered to finish $0.34 higher.
Key Headlines:
-ECB said to be considering cutting QE to €30 Bln a month from January 2018
-Japan Money Stock Data Y/Y M2 +4.1% vs +4.0% exp, prvs +4.0%. M3 +3.4% vs +3.4% exp, prvs +3.4%
-RBA Financial Stability Review: Australia’s financial system remains resilient and strong. Main risks come from increasing household debt amid low rates and weak income growth.
-The PBoC set the yuan mid-point at 6.5866 against the Dollar and skipped OMOs
-Atlanta Fed Governor Bostic said he is not sure if the Fed will raise rates in December, adding globally, inflation is beginning to pick-up.
-The PBoC leant 498 Bln yuan via 1-year MLF loans, rates unchanged
-China Trade Data Balance +$28.47 Bln vs +$38.05 Bln exp, prvs +$41.92 Bln
Imports Y/Y +18.7% vs +15.2% exp, prvs +13.5%
Exports Y/Y +8.1% vs +8.8% exp, prvs +5.6%
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