Global Markets:
- Asian stock markets: Nikkei down 1.40 %, Shanghai Composite gained 0.15 %, Hang Seng fell 1.35 %, ASX 200 declined 0.50 %
- Commodities: Gold at $1326 (+0.05 %), Silver at $19.17 (-0.70 %), WTI Oil at $47.50 (-0.70 %), Brent Oil at $49.35 (-0.90 %)
- Rates: US 10 year yield at 1.54, UK 10 year yield at 0.72, German 10 year yield at -0.12
News & Data:
- China Caixin Manufacturing PMI Sep: 50.1 (est. 50.1, prev. 50)
- Australia HIA New Home Sales (MoM) Sep: 6.1% (prev. -9.70%)
- Australia Private Sector Credit (MoM) Aug: 0.4% (est. 0.50%, prev. 0.40%)
- Australia Private Sector Credit (YoY) Aug: 5.8% (est. 5.90%, prev. 6.00%)
- Japan National CPI (YoY) Aug: -0.5% (est. -0.50%, prev. -0.40%)
- Japan National CPI Ex-Fresh Food (YoY) Aug: -0.5% (est. -0.40%, prev. -0.50%)
- Japan Jobless Rate Aug: 3.1% (est. 3.00%, prev. 3.00%)
- Japan Job-To-Applicant Ratio Aug: 1.37 (est. 1.37, prev. 1.37)
- Japan Overall Household Spending (YoY) Aug: -4.6% (est. -2.10%, prev. -0.50%)
- Japan Industrial Production (MoM) Aug P: 1.5% (est. 0.50%, prev. -0.40%), (YoY) Aug P: 4.6% (est. 3.40%, prev. -4.20%)
- Japan Housing Starts (YoY) Aug: 2.5% (est. 7.10%, prev. 90%)
- New Zealand M3 Money Supply (YoY) Aug: 5.3% (prev. 6.30%)
- New Zealand Building Permits (MoM) Aug: -1.0% (prev. -10.50%)
- New Zealand ANZ Activity Outlook Sep: 42.4 (prev. 33.7)
- New Zealand ANZ Business Confidence Sep: 27.9 (prev. 15.5)
- South Korea Nikkei Manufacturing PMI Sep: 47.6 (prev. 48.6)
- South Korea Industrial Production SA (MoM) Aug: -2.4% (est. -0.60%, prev. 1.40%)
- Industrial Production (YoY) Aug: 2.3% (est. 1.60%, prev. 1.60%)
- UK GfK Consumer Confidence (Sep): -1 (est -5, prev -7)
- PBOC sets USD/CNY mid-point at 6.6778 (prev fix. 6.6700, prev. close 6.6695)
Markets Update:
Risk appetite decreased amid worries about the stability of Deutsche Bank, one of the largest banks in the world (11th) and systemically important financial institutions. Stocks finished the day lower yesterday, and most of the Asian indices are down this morning as well. Oil prices retraced slightly overnight, which also had an impact on risk appetite.
In FX, it remains relatively quiet. EUR/USD traded 1.1205-25 overnight, while GBP/USD consolidated in a 1.2945-75 range. UD/JPY ran into decent offers ahead of the 101.80 level and the topside was capped there. While the pair remains bid overall, resistance pre-102 has proven to be tough.
Upcoming Events:
- 07:00 BST – German Retail Sales
- 07:45 BST – French CPI
- 09:30 BST – UK GDP
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone Unemployment Rate
- 13:30 BST – US Personal Income
- 13:30 BST – Canadian GDP
- 14:45 BST – US Chicago PMI
- 15:00 BST – US Michigan Consumer Sentiment
