Market themes of the Day: The Fed is set to ready markets for December hike

Mario Blascak, PhD Independent Analyst

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.

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.

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.

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Bla&scaron;čák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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When rates start driving the bus through a war zone

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