U.K.’s flash PMI indices indicate decline in business activity in November, composite index falls to 47.4
Bank of Korea likely to keep key interest rate on hold at 0.50 pct in November
The Bank of Korea is set to meet this week for its policy rate decision. According to a Scotiabank research report, the South Korean central bank is likely to keep its policy rate on hold at 0.50 percent this week. The CPI inflation is expected to remain in a range of 0.5 percent to 1 percent for the remainder of the year.
South Korean shares are likely to advance further after closing above the 2,600 level for the first time in history on Monday, supportive of the KRW exchange rate.
Meanwhile, the shipbuilding industry of South Korea is expected to continue clinging new ship orders. The country’s order receipts reached 720,000 CGTs in October, followed by China’s 250,000 CGTs.
The nation’s growing factory activity in the midst of a rebounding trade outlook is expected to continue stimulating the KRW exchange rate, with dollar selling by exporters giving the won a leg up. The manufacturing PMI index, released yesterday, saw a rise to 51.2 in October, the highest since September 2018, from 49.8 in September.