Quote:
‘(The 1920’s was living with the) insouciance of Grand Dukes and the morality of call girls.’ F. Scott Fitzgerald (1896-1940)
The News:
G7 warns on Yen moves; Japan said to expand bank bail-out scheme; Nikkei 225 at 26-year low and PM Aso considering measures to stabilise shares. South Korea slashes a record 75 basis points to 4.25%. Reserve Bank of Australia intervenes to prop up the currency. Indonesian rupiah under extreme pressure.
The Numbers:
Greenwich Mean Time, with expectations and previous figures in brackets.
From today GB September Nationwide House Prices (-2.0% to –0.8% M/M, -15.2% to –14.0% Y/Y, vs –1.7%/-12.4%).
09:00 DE October IFO (Business 86.9 to 82.3, Current 95 to 99, Expectations 83 to 86, vs 92.9/99.8/86.5 September).
09:00 EZ15 September M3 Money Supply (+8.2% to +9.0% Y/Y versus +8.8% August).
13:55 EZ15 ECB’s Trichet delivers a speech, Madrid.
14:00 US September New Home Sales (402K to 501K versus 460K August).
17:00 US Treasury auction result of ten-year TNote.
23:50 JP September Large Retailers’ Sales (-4.0% to –1.5% Y/Y versus –2.2% August).
23:50 JP September Retail Trade (-0.8% to +0.2% M/M, -0.8% to +1.0% Y/Y, versus +0.7% and +0.7% August).
The Psychology:
Deepavali holidays In Malaysia, Sri Lanka and Singapore.
The Risk:
The authorities look like headless chickens as stock markets slide a lot more.
Today’s most interesting chart: Hang Seng Index
Lowest since June 2004.
