- China property developer Country Garden likely to formally default on $15mn coupon payment
- FOMC minutes due Wednesday. Fed speakers too, including Bowman, Waller, Bostic, Collins.
- London's Luton Airport suspended all flights due to fire that partially collapsed car park
- ECB's Knot speaking Wednesday on financial stability
- GM, Canadian union reach tentative agreement, ending strike
- More from RBA's Kent: If we were to sell bonds, we'd do it in a way not to disturb markets
- China will hold 3rd Belt and Road Forum on October 17th-18th, CCP Chair Xi keynote speech
- PBOC sets USD/ CNY mid-point today at 7.1779 (vs. estimate at 7.2842)
- RBA's Kent pays lip service to 'further tightening may be required' to slow inflation
- ICYMI:WSJ Fed insider says higher bond yields are likely to result in extended FOMC pause
- PBOC is expected to set the USD/CNY reference rate at 7.2842 – Reuters estimate
- A big Wednesday coming up in the US - Inflation data (September PPI) and FOMC minutes
- Deutsche Bank's 4 reasons to be concerned about resurgent inflation
- Reuters Tankan for September shows tiny improvement
- J.P. Morgan Private Bank says conditions in place for a new high for equities in 2024
- Fed's Daly says we have more work to do, inflation is still high
- Japan media ICYMI - Bank of Japan considering raising its inflation outlook to nearly 3%
- ICYMI: China reportedly weighs new stimulus, higher deficit to meet growth target
- EU gives Musk 24 hours to respond about Israel-Hamas war misinformation and violence on X
- JP Morgan are wary of a disruption to oil supply and thus higher prices
- Paul Tudor Jones says it’s hard to like US stocks - "vicious circle"
- ICYMI: Deutsche Bank recommends overweight equities into 2024, risk turning to opportunity
- US Secretary of State Antony Blinken will travel to Israel this week
- MUFG says high yields have led to signalling from Fed officials of a pause
- Waiting on the private survey of oil inventory? It'll be tomorrow due to Monday's holiday.
- US stocks close higher for the 2nd day this week.
- Forexlive Americas FX news wrap: US dollar sags as Treasury yields fall
- Trade ideas thread - Wednesday, 11 October 2023
There was some movement for major FX rates during the session here but as I update the net changes are not large.
USD/JPY dipped to a low under 148.50 but has since popped back above 148.70.
AUD and NZD traded a little higher initially and have since given gains back. GBP is similar but has not dropped back so much. GBP and NZD hit multi-week highs.
Fresh news flow was sparse. Data was lower-tier only.
From China was the news (from the China Passenger Car Association) that September retail passenger vehicle sales rose 5% y/y, retail NEV sales rose 22.1% y/y. China’s economy, barring the property sector, is continuing to show signs of recovery. Once again the People’s Bank of China set the USD/CNY reference rate on the 7.17 big figure despite the market trading it circa 1000 points higher.
While on central banks, Reserve Bank of Australia, Assistant Governor (Financial Markets) Christopher Kent spoke on monetary policy transmission. His comments on the current impact on inflation seemed very much to indicate he is not expecting a rate hike any time soon, but he did caveat with the usual would do more if needed. Note that On October 25 we get official quarterly CPI data from Australia which may influence the November 7 meeting decision.More in the points above.
Regional stocks are firmer, following a good lead from Wall Street and also with sentiment supported by dovish FOMC indications and continuing hopes for more stimulus from China.
In South Korea Samsung Electronics jumped 3.7%, spurring the Kosdaq and Kospi on.
Brent held above US$87 with Israel continuing its action in Gaza to root out Hamas terrorists. A ground invasion move seems imminent.
Bitcoin lost some ground.
Asian equity markets:
Japan’s Nikkei 225 +0.5%
China’s Shanghai Composite +0.2%
Hong Kong’s Hang Seng +1.4%
South Korea’s KOSPI +2.3%
Australia’s S&P/ASX 200 +0.5% (up 4 days in a row)
Bitcoin:
