Market themes of the Day: The Fed is set to ready markets for December hike
|What you need to know before markets open
Main themes:
- The US mid-term elections weighed on the US Dollar that fell across the board.
- The US mortgage applications fell to an 18-year low as the mortgage rates hit 2010 highs.
- According to media reports, the UK emergency cabinet meeting to sign off Brexit divorce deal set to happen either tomorrow or Monday.
- China´s trade balance reached $34 billion in October, off record high in September with export still strongly up by 24.1%.
- The ECB President Mario Draghi delivers an introductory statement during his exchange of views with the House of Representatives in Dublin.
- Fed is expected to pave the way for the December rate hike at today´s meeting. For more details read Joseph's Preview here.
Europe
- German industrial production rose 0.2% over the month while rising 0.8% y/y in September.
- The Eurozone retail sales stagnated unchanged over the month while decelerating to 0.8% y/y. German export fell -0.8% y/y while import fell -0.4%y/y in September as trade balance remains in a surplus of €17.6 billion.
- German ruling CDU party is set to elect new party leader after Angela Merkel´s departure.
- The ECB President Mario Draghi delivers an introductory statement during his exchange of views with the House of Representatives in Dublin at 15:20 GMT.
UK
- The UK Halihaf house price index increased 0.7% m/m while decelerating to 1.5% y/y in October. The annual rate of house price growth has fallen to the lowest rate of annual growth since March 2013.
US
- The US weekly initial jobless claims are expected to reach 214K in the week ending November 2.
- The US Federal Reserve holds a monetary policy meeting paving the way for the December rate hike after a remarkable October labor market report that saw wages rising by the highest growth rate in a decade and 250K new jobs added. For more details read Joseph's Preview here.
New Zealand
- The RBNZkept the OCR at 1.75% releasing even more balanced outlook with rates moving possibly either side up or down.
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