- BOJ Governor Kuroda says will not hesitate to ease further if needed
- ECB's Villeroy says no obligation to raise rates by 75bps at the December meeting
- France October CPI 7.1% y/y vs 6.4% expected
- Spain October CPI 7.3% vs 8.1% expected
- Italy October CPI 12.8% vs 9.9% expected
- German Q3 flast GDP +0.3% vs -0.2% expected
- Spain Q3 GDP +0.2% vs +0.3% expected
- Eurozone economic sentiment 92.5 vs 92.5 expected
- Swiss KOF October indicator 90.9 vs 93.2 expected
Markets:
- Gold down $12 to $1651
- Brent crude down 47 cents to $96.49
- S&P 500 futures down 19 points to 3801
- German 10-year yields up 13 bps to 2.11%
- USD leads, JPY lags
The euro has largely hung with the US dollar as we await German inflation data at the top of the hour. Returns so far in Europe have been hot and that will complicate the ECB's job, though the market may be looking beyond October.
In Japan the yen is weak but did Kuroda open the door a crack to a hawkish shift when he said that that the underlying rise in inflation is likely to heighten medium and long-term inflation expectations and lead to a sustained rise in inflation accompanied by wage gains? I wonder if the market eventually circles back to that theme.
For now, bonds are in charge with rising yields rekindling the US dollar fire. Look for PCE to dictate the moves in US trading.
