In the euro area, October CPI and Q3 GDP figures are going to dominate the agenda. And in the UK, there's the budget announcement to go through. All that before we get into the stretch of jobs-related data in the US ahead of the non-farm payrolls report on Friday. And then, there's the BOJ policy decision tomorrow and month-end rebalancing flows to consider as well. Oh, what fun.
It's one of those times in markets when things might be a little tricky to decipher or make sense of. That with so many things happening as outlined above. Taking a step back and keeping a calm head is always a good tip, but easier said than done most of the time. However, it's still something worth reminding.
Looking at how markets are playing out ahead of the hustle and bustle later, major currencies are keeping more muted. The antipodeans are down slightly, in part dragged by a softer yuan as well. Chinese investors don't look too optimistic after the stimulus news yesterday. And Adam outlined why that seems to be the case here. The CSI 300 index is down 1% today at the lunch break now. PPT to the rescue?
Meanwhile, the bond market continues to stay in focus with 10-year Treasury yields briefly crossing over 4.30% overnight. It is back down to around 4.25% today but the threat of higher yields is still something to be wary of. If there is ever a spot, month-end flows will make reading the moves here fairly tougher.
Then, there is gold and Bitcoin which are rampaging higher as well. 🚀🌙
With plenty of moving parts in play, this will certainly keep market players busy in the days ahead. If not, at least we'll get quite a number of headlines to move things along.
0730 GMT - France Q3 preliminary GDP figures
0800 GMT - Spain Q3 preliminary GDP figures
0800 GMT - Spain October preliminary CPI figures
0800 GMT - Switzerland October KOF leading indicator index
0855 GMT - Germany October unemployment change, rate
0900 GMT - Germany Q3 preliminary GDP figures
0900 GMT - Italy Q3 preliminary GDP figures
0900 GMT - Switzerland October UBS investor sentiment
1000 GMT - Eurozone Q3 preliminary GDP figures
1000 GMT - Eurozone October final consumer confidence
1000 GMT - Eurozone October economic, industrial, services confidence
1100 GMT - US MBA mortgage applications w.e. 25 October
1300 GMT - Germany October preliminary CPI figures
The UK budget announcement is expected at around 1230 GMT but there might be leaks to the details in the run up. So, keep an eye out for that.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.