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Jens Peter Sørensen
Danske Bank A/S
Market movers today
Today there might be focus on the political situation in Italy after Silvio Berlusconi’s Freedom Party officially split during the weekend. If anything it appears to have strengthened Enrico Letta’s government that is now assured a majority in the Senate whether Berlusconi chooses to withdraw the support for the government or not.
In the data calendar the main event is the NAHB housing index in the US that is the first indicator for the strength of the US housing market in November.
Fed’s William Dudley (voter, dove) and Charles Plosser (voter, dove) are both scheduled to speak. Dudley’s speech will be the most important as his views are believed to be close to Ben Bernanke’s and Janet Yellen’s.
ECB board member Jörg Asmussen will also speak. It will be particularly interesting to see if he opens up for possible non-conventional easing measures as has been suggested by other board members recently.
Selected market news
It has been a fairly uneventful morning in the financial markets with modest movements in currencies, fixed income and equities.
The Asian equity markets continue to be driven by a positive sentiment on the back of the commitment from the Chinese government to implement reforms and carry out the broadest expansion of economic freedom since the 1990s. The Chinese government pledged last week to allow more private investment in state-controlled industries, to ease its family-planning policy and to expand farmers’ land rights and this continued to be supportive for the Asian equity markets this morning. The Chinese benchmark indices are up some 1-2%.
House prices in China continued to soar as new home prices rose. Prices rose in 69 of the 70 cities tracked by the government and 16% in Beijing according to the National Bureau of Statistics.
The major FX currencies are more or less unchanged from Friday. USD/JPY is still trading just 100, while EUR/USD is trading in an interval around the 134-level.
Asian bond markets are more or less unchanged, rising a few bp in the long end of the curve.
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