The main action today has been in the stock markets, with the DJI and S+P accelerating their run higher after some strong corporate earnings results and in hope of Trump’s tax plan eventually being passed. The DJI is up around 0.8% while the S+P is up by 0.2%. In the currencies, the US$ has been mixed and generally firm although the Euro is ending the day higher and is close to a bullish outside day, needing to close above 1.1800 5pm NY to do so. On the other side of the coin, US$Chf and US$Jpy both retain a bid tone, while Cable has held close to previous levels after the UK unemployment rate was unchanged at 4.3% in August, staying at 42 year low. The average weekly earnings rose 2.2%, above expectation of 2.1%, while the claimant counts rose 1.7k in September, below expectation of 3.2k. Claimant count rate was unchanged at 2.3%. The Aud and Kiwi are mostly rangebound, as are the metals and WTI.
Thursday will kick off in Asia with the Japanese trade data, the Australian unemployment (expect 15K, 5.6%) and a heap of China data, including the September Retail Sales (exp 10.2%yy), Industrial Production (exp 6.2%yy), Urban Investment (exp 7.7%yy) and the Q3 GDP (exp 1.7%qq, 6.8%yy), which could all add up to make for a lively session. On top of all this, look for a resolve of the NZ election result which may see a quick move in the Kiwi. It becomes rather tame after the Asian session though, with the UK Retail Sales (exp -0.2%mm, 2.0%yy; Ex-auto +0.1%mm, 2.4%yy) being the European highlight, while from the US it will be the Philadelphia Fed Manufacturing Survey (exp 23.7), weekly jobless claims and a speech from the Fed’s George that will be in focus. There is also a EU Council Meeting taking place so watch for any potential headlines to come from that; and likewise with the Chinese leadership conference.
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|ASX SPI: 5868|