Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
BOK Expected to Hold Rates at 2.50% as Housing and Currency Pressures Persist 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Japan’s Rising Inflation Strengthens Case for a Near-Term BOJ Rate Hike 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
The European Central Bank (ECB) is expected to adopt its first deposit rate hike only by the second quarter of 2019, according to the latest research report from Scotiabank. Moreover, Italian politics is likely keep BTP yields high in the immediate few months, keeping demand for German bunds elevated.
Euro interest rates have pushed back monetary normalisation and now appear too complacent about longer-term inflationary risks. To be sure, Eurozone economic data have surprised on the downside in the early part of the year.
Further, rates got another tailwind when the ECB suggested that rate increases are likely to come only in summer 2019. These events prompted the market to pare down rate hike expectations with the 2-year/3-month Euribor down to 0.11 percent, from as high as 0.3 percent in January. Similarly, 10-year German yields are back at 0.36 percent (broadly unchanged since the start of the year).
"We now expect 10-year German yields to touch 0.8 percent and 1.35 percent by end-2018 and end-2019 respectively," the report added.
