Global Markets:
- Asian stock markets: Nikkei down 4.90 %, Shanghai Composite lost 0.50 %, Hang Seng declined 3.00 %, ASX 200 fell 1.90 %
- Commodities: Gold at $1324 (+3.90 %), Silver at $18.85 (+2.70 %), WTI Oil at $43.70 (-2.90 %), Brent Oil at $44.85 (-2.60 %)
- Rates: US 10 year yield at 1.74, UK 10 year yield at 1.25, German 10 year yield at 0.19
News & Data:
- China CPI (MoM) Oct: -0.1% (est. 0.00%, prev. 0.70%)
- China CPI (YoY) Oct: 2.1% (est. 2.10%, prev. 1.90%)
- China PPI (YoY) Oct: 1.2% (est. 0.80%, prev. 0.10%)
- Japan BoP C/A Balance (JPY)Sep: 1821.0B (est. 2020.0B, prev. 2000.8B)
- Australia Westpac Consumer Confidence Index Nov: 101.3 (prev. 102.4)
- Australia Westpac Consumer Confidence SA (MoM) Nov: -1.1% (prev. 1.10%)
- South Korea Unemployment Rate SA Oct: 3.7% (est. 4.00%, prev. 4.00%)
- S&P500 Futures fall 5%, hit limit down
- Nasdaq futures fall 5%, hit limit down
Markets Update:
While it is still not clear who will win the US presidential elections, market participants are very nervous. The US Dollar fell sharply against the safe havens overnight, with USD/JPY collapsing from 105.50 to 101, and USD/CHF declining from 0.9840 to 0.9550. Meanwhile, the risk currencies, such as AUD and NZD, fell against the Dollar, as did emerging market currencies. The market was especially focused on the Mexican Peso, which declined more than 10 % to a fresh record low against the USD, the largest move since the Lehman Collapse in 2008.
If Trump indeed becomes the next US president, precious metals are likely to extend gains even further, and the Bank of Japan & Swiss National Bank will have a tough time preventing further JPY & CHF appreciation.
Upcoming Events:
- 09:30 GMT – UK Trade Balance
- 15:30 GMT – US Crude Oil Inventories
- 20:00 GMT – RBNZ Rate Decision
- 20:00 GMT – RBNZ Statement
- 21:00 GMT – RBNZ Governor Wheeler speaking
