Asian equity markets were generally higher overnight with the Nikkei breaching 22,000 to trade at levels not seen since July 1996. The Aussie market was the exception today after falling sharply on the news the High Court ruled Deputy PM Joyce was ineligible for parliament. This meant that PM Turnbull's government lost its 1 seat majority. The Aussie $ also lost ground in what was generally a decent session for the USD$, although it did finish off from its highs. Against the Euro & Swiss it reached levels not seen since the end of July & May respectively. In Bond world the markets caught an unexpected bid in early trade. However this didn't last long and both UST's & JGB's traded down to fresh lows. Volume was heavy with over 120k lots trading in Dec 10yrs in a 6 tick range. Comments from Fed candidate Taylor, who said "Lower U.S. growth is due to economic policy" weighed on the market and caused the spike in volume. Aussie Bonds were a little more subdued with both having an inside day albeit with a slightly softer close. Elsewhere Gold remained soft and Oil hung on its previous days gains.
Key Headlines
-Japan National CPI Data Y/Y +0.7% vs +0.7% exp, pvs +0.7%
-Australia PPI Data (Q3) Q/Q +0.2%, pvs +0.5%. Y/Y +1.6%, pvs +1.7%
-Fed Chair Candidate Taylor said lower US growth is due to economic policy
The PBoC set the yuan mid-point at 6.6473 against the Dollar
The PBoC injected 60 Bln yuan via 7-day reverse repos, 30 Bln yuan via 14-day reverse repos, 50 Bln yuan via 63-day reverse repos (for the first time)
-China Industrial Profits Y/Y (Sep) +27.7%, previous +24.0%
-Australian High Court ruled Deputy PM Joyce ineligible for parliament meaning government loses its 1 seat majority
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