Quote:
‘Volatility is the mother of opportunity.’ Ken Baird (1964-)
The News:
Fed’s Yellen says Fed funds target could ‘go a little lower’ as Q4 GDP might also be negative.
The Numbers:
Greenwich Mean Time, with expectations and previous figures in brackets.
(23:30) JP September Jobless 4.00%, Job-to-Applicant 0.84, versus 4.2% and 0.86 August.
(23:30) JP September Household Spending –2.3% Y/Y versus –4.0% August.
(23:30) JP October Tokyo CPI+1.2% Y/Y, September Nationwide +2.1%, vs +1.4% and +2.1%.
00:01 GB October GfK Consumer Confidence –36 versus –32 September.
05:00 JP September Housing Starts 1.126M versus 1.130M August.
06:00 JP Bank of Japan cuts rates 20 basis points to 0.30%, first cut in 7 years on a split vote.
07:00 DE September Retail Sales –2.3% M/M, +1.2% Y/Y, versus +1.9% and –3.0% August.
10:00 EZ15 October CPI (+2.9% to +3.5% Y/Y versus +3.6% September).
10:00 EZ15 September Unemployment (7.4% to 7.6% versus 7.5% August). 10:30 CH October KOF (0.3 to 0.6 vs 0.6).
12:30 CA August GDP (-0.5% to -0.1% M/M versus +0.7% July).
12:30 US September Personal Income (-0.5% to +0.5% M/M, Spending –0.5% to +0.2%, vs +0.5% and 0% August).
12:30 US September Core PCE (0% to +0.2% M/M, +2.2% to +2.6% Y/Y, Deflator +4.1% to +4.5% Y/Y, versus +0.2%, +2.6% and +4.5% August).
12:30 US Q3 Employment Cost Index (+0.3% to +0.9% versus +0.7% Q2).
13:45 US October Chicago Purchasing Managers (43.6 to 54.5 versus 56.7 September).
14:00 US October final University of Michigan Confidence Survey (50 to 63 vs 57.5).
18:00 US Fed’s Bernanke speaks on mortgage finance, Berkeley.
The Psychology:
All Souls Day today; All Saints Day Saturday. Monday holidays in Japan and Russia.
Today’s most interesting chart: German 2YR Schatz
Highest price, lowest yield, since Sep 2005.
