Global Markets:
- Asian Stock Markets : Nikkei up 0.41%, Shanghai Composite up 4.51%, Hang Seng up 2.34%, ASX down 0.58%
- Commodities : Gold at $1229.40 (+0.06%), Silver at $14.65 (-0.03%), Brent Oil at $80.00 (+0.28%), WTI Oil at $69.55 (+0.39%)
- Rates : US 10-year yield at 3.198, UK 10-year yield at 1.586, Germany 10-year yield at 0.463
News & Data:
- (CAD) Trimmed CPI y/y 2.10% vs 2.20% previous
- (CAD) Retail Sales m/m -0.10% vs 0.30% expected
- (CAD) Median CPI y/y 2.00% vs 2.10% previous
- (CAD) Common CPI y/y 1.90% vs 2.00% previous
- (CAD) Core Retail Sales m/m -0.40% vs 0.10% expected
- (CAD) CPI m/m -0.40% vs 0.10% expected
- (GBP) Public Sector Net Borrowing 3.3B vs 4.6B expected
Markets Update:
Asian share markets swung into the black on Monday as the promise of more stimulus boosted Chinese stocks for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit. China's tax cuts next year could be worth more than 1 percent of gross domestic product (GDP), a central bank adviser said in remarks published on Monday, in a sign policymakers might be considering another round of reductions. The government also published a draft version of new rules for tax deductions available to individuals.
Blue chips in Shanghai jumped 4.8 percent in the largest daily gain in three years, adding to Friday's bounce on Beijing's pledge of support for the economy and companies. The Shenzhen composite is up by 5%. In Hong Kong, the Hang Seng index rose 2.4 percent. Japan's Nikkei moved up 0.4 percent, after being down more than 1 percent earlier, while South Korean stocks were flat. The Australian market is losing ground after news that Australia's ruling Liberal Party was poised to lose a crucial by-election in Sydney that could rob the government of its one-seat parliamentary majority.
Saudi Arabia remained in the spotlight as Riyadh on Sunday called the killing of journalist Jamal Khashoggi a "huge and grave mistake," but sought to shield its powerful crown prince from the widening crisis.
Italian bond yields hit their highest level since early 2014 on Friday and the premium investors demand in comparison to German debt is at a five and a half year high. Oil prices were stable on Monday, supported by supply concerns ahead of the start of U.S. sanctions against Iran's crude exports, but held back by rising drilling activity in the United States.
CFTC Positioning Data:
- EUR short 29K vs 16K short last week. Shorts increased by 13K
- GBP short 50K vs 61K short last week. Shorts trimmed by 11K
- JPY short 101K vs 115K short last week. Shorts trimmed by 14K
- CHF short 13K vs 13K short last week. No change in position.
- CAD short 11k vs 12k short last week. Shorts trimmed by 1K
- AUD short 71k vs 73k short last week. Shorts trimmed by 2K
- NZD short 35K vs 34K short last week. Shorts increased by 3K
Upcoming Events:
Monday, October 22, 2018
- 11:35 PM GMT – (AUD) RBA Assist Gov Debelle Speaks
Tuesday, October 23, 2018
- 04:00 AM GMT – (AUD) RBA Assist Gov Bullock Speaks
- 05:30 AM GMT – (AUD) RBA Assist Gov Debelle Speaks
- 11:30 AM GMT – (GBP) MPC Member Haldane Speaks
- 04:20 PM GMT – (GBP) BOE Gov Carney Speaks
- 06:30 PM GMT – (USD) FOMC Member Bostic Speaks
Wednesday, October 24, 2018
- 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 08:15 AM GMT – (EUR) French Flash Services PMI
- 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Services PMI
- 09:00 AM GMT – (EUR) Flash Manufacturing PMI
- 09:00 AM GMT – (EUR) Flash Services PMI
- 03:00 PM GMT – (CAD) BOC Monetary Policy Report
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 04:15 PM GMT – (CAD) BOC Press Conference
- 06:00 PM GMT – (USD) FOMC Member Bostic Speaks
- 06:10 PM GMT – (USD) FOMC Member Mester Speaks
- 10:45 PM GMT – (NZD) Trade Balance
Thursday, October 25, 2018
- 08:00 AM GMT – (EUR) Spanish Unemployment Rate
- 09:00 AM GMT – (EUR) German Ifo Business Climate
- 12:45 PM GMT – (EUR) Main Refinancing Rate
- 01:30 PM GMT – (EUR) ECB Press Conference
- 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 01:30 PM GMT – (USD) Durable Goods Orders m/m
- 05:15 PM GMT – (USD) FOMC Member Clarida Speaks
Friday, October 26, 2018
- 02:00 AM GMT – (USD) FOMC Member Mester Speaks
- 01:30 PM GMT – (USD) Advance GDP q/q
- 01:30 PM GMT – (USD) Advance GDP Price Index q/q
- 03:00 PM GMT – (EUR) ECB President Draghi Speaks
- 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
