FX News
European Outlook: Asian stock markets traded cautiously as China’s Xi laid out his road map to 2015. Drug makers in Hong Kong and China outperformed, after the President vowed to develop the health industry. The Hang Seng is nevertheless slightly in the red and the Nikkei fluctuated amid concerns that indices are looking overbought. U.K. and U.S. futures are moving higher, after European markets closed mostly with slight losses yesterday and the GER30 failed to hold the 13000 mark. The Spanish IBEX outperformed despite the escalation of the Catalonia crisis, as Madrid prepares to take over control and Puigdemont faces a final ultimatum that runs out tomorrow. In the U.K. Brexit remains high on the agenda after the OECD warned of its negative impact on the economy and ahead of this week’s EU summit on the state of the talks. Data releases today focus on U.K. labour market data and especially wage growth, which will be watched closely by the BoE.
U.S. reports revealed a Q3 underperformance for industrial production despite a 0.3% September bounce thanks to downward back-revisions, though a solid 3%-4% growth rate was expected for this index through Q4 and Q1. The September trade price figures beat estimates thanks to a 1.0% surge in export prices ex-agriculture and a 4.5% petroleum import price rise, leaving headline gains of 0.8% for exports and 0.7% for imports, and rebounding global growth will lift both trade prices and the factory sector going forward. We also saw an NAHB index bounce to 68 in October from 64.
Main Macro Events Today
ECB – ECB President Draghi is due to deliver opening speech at the ECB conference in Frankfurt.
UK Labor data – Expectations -Unemployment rate remain unchanged at 4.3% and Household Earnings to rise by 2.1% y/y in the three months to August.
US Housing Permits – Expectations – Rise to a 1.200 mln pace following the 0.8% decline in August.
FOMC Speeches – NY Fed dove Dudley and Dallas Fed hawk Kaplan.
Charts of the Day
Support and Resistance Levels
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