- Japan Fin Min Aso - BoJ to decide if additional easing needed, what BoJ can do to up inflation limited, BoJ counting on CAPEX, wage increases.
- BoJ likely to cut core CPI, GDP forecasts next week.
- Japan October manufacturing PMI - flash 52.5, best in 19 mos, Sept 51.0, new export orders 52.1 vs 48.0 contraction, overall new orders 54.9 vs 53.0.
- China September new home prices -0.9% y/y, August -2.3%, Beijing-Shanghai prices up.
- Foreign CB US debt holdings -$12.991 bln to $2.301 trln week-ended Oct 21, Treasuries -$10.915 bln to $2.977 bln, agencies -$2.241 bln to $278.649 bln.
- NY Fed - Swaps with foreign CBs $140 mln Oct 21 week, all with ECB.
- Debt ceiling debate could put money funds into uncharted waters.
- Investors pump $8.7 bln into stock, taxable bond funds latest week.
- Australia NAB ups variable mortgage rate by 17 bps.
- (0300 ET/0700 GMT) France October PMI manufacturing flash, 50.2 eyed; last 50.6.
- (0300 ET/0700 GMT) France October PMI services flash, 51.6 eyed; last 51.9.
- (0300 ET/0700 GMT) France October PMI composite flash; last 51.9.
- (0330 ET/0730 GMT) Germany October PMI manufacturing flash, 51.6 eyed; last 52.3.
- (0330 ET/0730 GMT) Germany October PMI services flash, 53.9 eyed; last 54.1.
- (0330 ET/0730 GMT) Germany October PMI composite flash; last 54.1.
- (0400 ET/0800 GMT) EZ October PMI manufacturing flash, 51.7 eyed; last 52.0.
- (0400 ET/0800 GMT) EZ October PMI services flash, 53.5 eyed; last 53.7.
- (0400 ET/0800 GMT) EZ October PMI composite flash, 53.4 eyed; last 53.6.
- (0400 ET/0800 GMT) Italy August industrial orders/sales; last +0.6% m/m, +10.4% y/y, -1.1%, +2.3%.
- (0500 ET/0900 GMT) Italy August retail sales; last +0.4% m/m, +1.7% y/y.
- (0600 ET/1000 GMT) Italy September wage inflation; last unchanged m/m, +1.2% y/y.
- (0900 ET/1300 GMT) Belgium Oct leading indicator; last -6.8.
- (0945 ET/1345 GMT) US October Markit manufacturing PMI - flash, 52.8 eyed; last 53.1.
Key Events Ahead
- N/A UK DMO /2.0/2.0 bln 1/3/6-month treasury bill auctions.
- (0315 ET/0715 GMT) Norges Bank Gov Olsen lecture in Oslo.
FX Recap
EUR/USD: Risk-on sentiment was the main theme in the Asian session after ECB Draghi's strong indications of QE reassessment in December spurred risk-on rally in global equities. After the ECB-led storm on Thursday, markets look forwards to a series of final manufacturing PMIs from the Euro area economies, with the German and Euro zone closely eyed. It made intraday high at 1.1119 and low at 1.1072 levels. Initial support is seen around at 1.1015 and resistance at 1.1560 levels.
USD/JPY: Japanese manufacturing activity improved at the sharpest rate in over 18 months in October, according to an early industry gauge, after orders increased due to higher international demand. The Nikkei Flash Japan manufacturing PMI rose from 51.0 in September to a preliminary 52.5 in October, where a reading above 50 signals an expansion in activity. Pair made intraday high at 120.98 and low at 120.60 levels. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.
GBP/USD: The cable recovered as traders digested strong data on both sides of the Atlantic. In addition, the greenback received powerful support in form of solid US data, especially bouncing existing home sales in September. Today is data thin calendar for UK. Market will focus on US macro economic data for the further directions. Pair made intraday high at 1.5414 and low at 1.5375 levels. Initial support is seen at 1.5107 and resistance is seen around 1.5725 levels.
NZD/USD: The New Zealand dollar continued to build gains on Friday, supported by the belief that the Reserve Bank of New Zealand is unlikely to cuts rates at next week's meeting, while the Fed is unlikely to start its policy normalization this year as Europe's central bank talks of upping its stimulus. Pair made intraday high at 0.6846 and low at 0.6780 levels. Initial support is seen at 0.6235 and resistance at 0.6896 levels.
AUD/USD: The Antipodean currencies benefited the most from the risk-on rally in equities and also amid rising appetite for higher yielding currencies. The Aussie shrugged-off RBA rate cut chatter amid mortgage rate hikes by top Australian banks, including the CBA, NAB and ANZ. AUD/USD advances 0.62% to 0.7252. Pair made intraday high at 0.7256 levels and low around 0.7197 levels. Initial support is seen at 0.6908 and resistance at 0.7438 levels.
Equity Recap
Japan's benchmark Nikkei 225 index rallied 2.31% to 18,862.25 points within the first hour of trade on Friday, while Tokyo's broader Topix gauge jumped 2.14% to 1,550.74 points.
Hong Kong's benchmark Hang Seng index advanced 1.45% to 23,176.71 points at the opening bell, and mainland China's benchmark Shanghai Composite grew a more moderate 0.27% to 3,377.69 points.
Korea's benchmark Kospi index jumped 1.48% to 2,054.60 points this morning in Seoul.
The benchmark Australian S&P/ASX 200 index rallied 1.81% to 5,359.30 points in Sydney, with media and bank stocks in pole position on Friday morning.
New Zealand's benchmark S&P/NZX 50 index rose 0.72% to 5,965.98 points this afternoon in Wellington.
Australia's S&P/ASX 200 index closes up 1.62 pct at 5,349.00 points.
Tokyo's Nikkei average closes up 2.11 pct at 18,825.30.
Treasury Recap
China finance ministry auctions 3 month bills at 2.3516 pct. China finance ministry auctions 6 month bills at 2.3891 pct.
New Zealand government bonds edged up, with yields 2 basis points lower.
Australian government bond futures had a firm tone, with the three-year bond contract up 2 ticks at 98.210. The 10-year contract added 1.5 ticks to 97.3600, while the 20-year contract was half a tick higher to 96.8000.
Commodity Recap
Gold ticked up from its lowest in over a week on Friday but was poised to snap a two-week winning streak due to a stronger dollar and robust data that boosted expectations for a U.S. rate rise this year. Spot gold rose 0.3 percent to $1,168.59 an ounce by 0405 GMT. It fell as low as $1,162.50 in the previous session, the lowest level since Oct. 13.
Oil prices hiked on Friday as risk-on sentiment returned to the market, but a strong US dollar and a persisting global supply glut limit any major upward moves on the commodity. Futures for WTI grew 0.26% to trade at $45.50 per barrel, while Brent futures were traded 0.56% elevated at $48.35 per barrel.
