It has been another big day for the stock markets, with China leading the way lower yesterday, in closing down 5.2%, followed up by the EU indices (down 1.5/2.5%) and then by the US markets (S+P/DJI; -2.1%, Nasdaq; -1.25%). Oil followed the stock markets (WTI; -3%), while Gold found plenty of safe haven demand and closed up 2.5%. The FX markets were a little calmer although the US$ is generally heavy after the release of the US CPI which once again failed to meet expectations. The headline CPI slowed from 2.7% yy to 2.3% yy, missing the expectation of 2.4% yy. Core CPI was unchanged at 2.2% yy, and also missed expectation of 2.3% yy. The US initial jobless claims rose 7k to 214k in the week ended October 6, missing expectation of 205k, while the continuing claims rose 4k to 1.66m in the week ended September 29.
Friday is going to be a busy session although it will be overall risk sentiment driven by stock market moves that are likely to drive the overall direction. The major events coming up will be:
NZ Business PMI, Australian Financial Stability Report, Home Loans, Investment Lending for Homes (Aug), China Trade Balance (Sept exp Imports; +2.6%, Exports; +8.9%), Foreign Direct Investment, German CPI/HICP (Sept (CPI, exp 0.4%mm, 2.3%yy; HICP, exp 2.4%yy) ), EU Industrial Production (Aug), US Import/Export Index (Sept), Preliminary Michigan Consumer Sentiment Index (Oct).
I am travelling next week so the only update will be the Trend table. Have a good weekend.
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