Market Roundup
- China's securities regulator seeks to support market confidence with new measures
- Japan fin min says U.S. currency report won't restrict FX policy
- Trump says Saudi journalist likely dead; Turkey searches for remains
- Trump threatens to send military, shut border as migrants head for Mexico
- U.S. asks for WTO panel over metals tariff retaliation
- Italy defends budget as EU warns of "unprecedented" rules breach
- Australian regulator says bigger stick needed to clean up financial sector
- China Q3 GDP YY, 6.5%, 6.6% f’cast, 6.7% prev
- China Q3 GDP QQ SA, 1.6%, 1.6% f’cast, 1.7% prev
- China Sep Urban investment (ytd)yy, 5.4%, 5.3% f’cast, 5.3% prev
- China Sep Industrial Output YY, 5.8%, 6.0% f’cast, 6.1% prev
- China Sep Retail Sales YY, 9.2%, 9.0% f’cast, 9.0% prev
- Japan Sep CPI, Core Nationwide YY, 1.0%, 1.0% f’cast, 0.9% prev
- Japan Sep CPI, Overall Nationwide, 1.2%, 1.3% prev
- U.S. fund investors pull most cash since June from stocks -Lipper
- Foreign CB US debt holdings -$11.032 bln to $3.433 tln Oct 17 week
- Treasuries -$10.702 bln to $3.058 tln, agencies +663 mln to $307.576 bln
Economic Data Ahead
- (0430 ET/0830 GMT) Great Britain Sep PSNB Ex Banks GBP, 4.500 bln f’cast, 6.753 bln prev
- (0430 ET/0830 GMT) Great Britain Sep PSNB, GBP, 4.600 bln f’cast, 5.889 bln prev
Key Events Ahead
- (0230 ET/0630 GMT) BoJ Governor Haruhiko Kuroda will make brief remarks at a Japanese Trust Banks Associating meeting in Tokyo
- (1130 ET/1530 GMT) BoE Governor Mark Carney gives a Speech at the Economic Club of New York
- (1200 ET/1600 GMT) Fed Atlanta President Raphael Bostic participates in armchair discussion on the economic outlook in Macon
- (1245 ET/1645 GMT) Fed Dallas President Robert Kaplan speaks before Manhattan Institute event in New York
FX Beat
DXY: The dollar index eased after the United States requested that a World Trade Organization dispute resolution panel get involved in a disagreement over international retaliation over U.S. tariffs on steel and aluminium. The greenback against a basket of currencies trades 0.05 percent down at 95.93, having touched a high of 95.99on Thursday, its highest since October 9. FxWirePro's Hourly Dollar Strength Index stood at 66.85 (Bullish) by 0400 GMT.
EUR/USD: The euro edged up, but stayed closed to a 9-day low touched in the previous session, as the European Commission's criticism of Italy's populist budget stoked fresh concerns about political tensions. The European currency traded 0.1 percent up at 1.1462, having touched a low of 1.1449 on Thursday, its lowest since October 9. FxWirePro's Hourly Euro Strength Index stood at -96.03 (Slightly Bearish) by 0400 GMT. Investors’ attention will remain on the Eurozone current account, ahead of the U.S. existing home sales and FOMC members speech. Immediate resistance is located at 1.1503 (October 9 High), a break above targets 1.1545 (October 10 High). On the downside, support is seen at 1.1432 (October 9 Low), a break below could drag it till 1.1400.
USD/JPY: The dollar surged, reversing some of its previous session losses, after data showed new applications for U.S. unemployment benefits fell last week and the number of Americans on jobless rolls declined to levels last seen in 1973, indicating a further tightening in labor market conditions. The major was trading 0.2 percent up at 112.37, having hit a high of 112.73 on Thursday, its highest since October 10. FxWirePro's Hourly Yen Strength Index stood at 62.72 (Bullish) by 0400 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. existing home sales and FOMC members speech. Immediate resistance is located at 112.87 (September 21 High), a break above targets 113.13 (September 26 High). On the downside, support is seen at 112.04 (September 20 Low), a break below could take it lower 111.62 (September 15 Low).
GBP/USD: Sterling consolidated near a 2 week low as an EU-UK summit failed to yield a decision on Britain's exit from the Euro zone. On Thursday, British Prime Minister Theresa May stated that the European Union's proposal on the Irish border was unacceptable. The major traded flat at 1.3023, having hit a low of 1.3016 on Thursday; it’s lowest since October 5. FxWirePro's Hourly Sterling Strength Index stood at -128.56 (Highly Bearish) 0400 GMT. Immediate resistance is located at 1.3090 (September 28 High), a break above could take it near 1.3150 (October 9 High). On the downside, support is seen at 1.2979 (September 12 Low), a break below targets 1.2941 (October 2 Low). Against the euro, the pound was trading flat at 87.99 pence, having hit a low of 88.25 on Monday, it’s lowest since October 5.
AUD/USD: The Australian dollar rebounded from a 1-week low after Chinese regulators pledged further policy support as the trade war with the United States sparked a blistering selloff in domestic stock markets. The Aussie trades 0.1 percent up at 0.7108, having hit a low of 0.7089; it’s lowest since October 11. FxWirePro's Hourly Aussie Strength Index stood at 2.73 (Neutral) by 0400 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7065 (October 4 Low), a break below targets 0.7040 (October 8 Low). On the upside, resistance is located at 0.7148 (October 15 High), a break above could take it near 7223 (September 18 High).
NZD/USD: The New Zealand dollar rose after falling to a 4-day trough earlier in the session on the back of data that showed China's economy grew 6.5 percent in the third quarter, a tick short of forecasts and the slowest pace since the global financial crisis. The Kiwi trades 0.3 percent up at 0.6563, having touched a high of 0.6601 on Wednesday, its highest level since October 2. FxWirePro's Hourly Kiwi Strength Index was at 145.08 (Highly Bullish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6628 (October 1 High), a break above could take it near 0.6696 (September 26 High). On the downside, support is seen at 0.6506 (10-DMA), a break below could drag it below 6474 (October 4 Low).
Equities Recap
Asian shares declined after China posted its weakest economic growth since the global financial crisis, adding to market concerns about global trade disputes and Italy's deficit-hiking budget.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.2 percent.
Tokyo's Nikkei declined 0.7 percent to 22,492.86 points, Australia's S&P/ASX 200 index slumped 0.05 percent to 5,939.50 points and South Korea's KOSPI surged 0.3 percent to 2,154.46 points.
Shanghai composite index rose 2.2 percent to 2,528.18 points, while CSI300 index traded 2.1 percent up at 3,107.36 points.
Hong Kong’s Hang Seng traded 0.7 percent higher at 25,622.82 points. Taiwan shares added 0.4 percent to 9,919.26 points.
Commodities Recap
Crude oil prices surged but were set for a second weekly decline amid higher U.S. crude inventories, an ongoing U.S.-China trade war and concerns over the death of a prominent Saudi journalist. International benchmark Brent crude was trading 0.1 percent up at $79.40 per barrel by 0433 GMT, having hit a low of $78.67 on Thursday, its lowest since September 21. U.S. West Texas Intermediate was trading 0.2 percent up at $68.77 a barrel, after falling as low as $68.50 on Thursday, its lowest since September 14.
Gold prices rose, extending previous session gains and was on track for its third straight weekly rise amid renewed political and economic concerns. Spot gold was up 0.2 percent at $1,227.68 an ounce at 0437 GMT, having hit a high of $1233.14 on Monday, its highest since July 26 and was up about 0.7 percent for the week. U.S. gold futures were little changed at $1,230.60 an ounce.
Treasuries Recap
The Japanese government bonds remained mixed on the last trading day of the week as investors have largely shrugged-off the slight increase in the country’s national core consumer price inflation (CPI), released earlier today. The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped 15 basis points to 0.150 percent, the yield on the long-term 30-year note hovered around 0.911 percent and the yield on short-term 2-year slumped 11-1/2 basis points to -0.116 percent.
The Australian government bond yields slumped during Asian session tracking the after-effects of the country’s lower-than-expected employment change for the month of September. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped 5 basis points to 2.693 percent, the yield on the long-term 30-year bond also plunged 5 basis points to 3.165 percent and the yield on short-term 2-year traded 3-1/2 basis points lower at 2.038 percent.
The Canadian government bond prices were higher across a flatter yield curve, with the 10-year rising 25 Canadian cents to yield 2.494 percent. The gap between Canada's 10-year yield and its U.S. equivalent widened by 3 basis points to a spread of 68.5 basis points in favor of the U.S. bond.
