S&P 500 sets new closing all time high at 1782

Good Morning,

- Sterlings rallies hard as BoE upgrading its growth forecast (2.8pc next year, from a prediction of 2.5pc in August).

- Asian shares: Japan's Nikkei 2.12%, Hong Kong's Hang Seng 0.82%, Korea's Kospi 0.20 %, Australia's ASX 200 0.65% and China's Shanghai 0.60%.

- S&P 500 sets new closing all time high at 1782.

- France: Ongoing decrease of employment in Q3 2013, payroll employment in principally market sectors decreased q-o-q (–17,000 jobs), after a stronger drop in the previous quarter (-34,600). Excluding temporary work, employment fell again in Q3 2013 (-21,800 jobs).

- French GDP was slightly down -0.1% in Q3, after a rebound in Q2 (+0.5%). Household consumption expenditure decelerated (+0.2% after +0.4%). Furthermore, total gross fixed capital formation (GFCF) decreased again (–0.6% after –0.4%). Overall, final domestic demand (excluding inventory changes) decelerated and had a neutral contribution to GDP after +0.4 point the previous quarter. Exports relapsed (–1.5% after +1.9%) whereas imports remained on a rising trend (+1.0%) after a dynamic second quarter (+1.6%).

- The German economy continues to grow. In the third quarter of 2013, the gross domestic product (GDP) rose 0.3% on the previous quarter after adjustment for price, seasonal and calendar variations. In the second quarter of 2013, the GDP increase had been much larger (+0.7%), following a stagnation at the beginning of the year. Positive contributions were made only by domestic demand in the third quarter of 2013. Final consumption expenditure of households and of government was somewhat higher than in the previous quarter.

- ECB defending the recent rate cut (Weidmann, Bundesbank Head) and not ruling out the use of unconventional policies such as quantitative easing (ECB executive board member Peter Praet).

- BOE’s Fisher says UK is a long way away from conditions of explosive debt credit, says BOE will be vigilant.
Suggesting that there is currently no danger of spiraling debt-based liquidity in the economy but they will be keeping a close check on it.

- BOE says Jobless Rate may reach 7% in 2015 on robust growth.

- Bernanke says Fed is ‘missing’ on its jobs and inflation mandates.

- Janet Yellen is ready to face the Senate. Federal Reserve vice chairwoman Janet Yellen has been nominated by President Obama to succeed Fed chairman Ben Bernanke when his term expires in January. Today, the Senate Banking Committee holds a confirmation hearing, and it will mark the first time since April that Yellen has spoken publicly about monetary policy. Most agree that Yellen will not try to "break any new ground" with respect to monetary policy in her confirmation hearing today but many also acknowledge the potential for market volatility arising from the event.

- S&P affirms Canada at AAA, outlook stable.

- Japan's industrial output grew only 1.3 percent in September from August, down from preliminary data showed a 1.5 percent rise in production.

- NZ 3Q retail sales rise less than expected at 0.3 percent

- Watch today: UK Retail Sales, EU GDP, US Jobless Claims.

Have a nice Day!