Global Markets:
- Asian Stock Markets : Nikkei up 1.87%, Shanghai Composite up 2.64%, Hang Seng up 2.15% ASX up 0.05%
- Commodities : Gold at $2684.35 (-0.34%), Silver at $31.90 (-1.24%), Brent Oil at $70.81 (-0.56%), WTI Oil at $67.46 (-0.47%)
- Rates : US 10-year yield at 3.802, UK 10-year yield at 4.012, Germany 10-year yield at 2.172
News & Data:
- (USD) Final GDP q/q 3.0% vs 3.0% expected
- (USD) Unemployment Claims 218K vs 224K expected
Markets Update:
Chinese markets are poised for their best week in nearly 16 years as the CSI 300 index anticipates a 15% rally, driven by economic stimulus measures announced by the People’s Bank of China (PBOC). This marks the index’s biggest weekly gain since November 2008. Meanwhile, Hong Kong’s Hang Seng Index (HSI) is set for a 12.85% weekly gain, its best performance since February 1998.
On Friday, the CSI 300 rose almost 4%, and the HSI climbed 3.5%, following the PBOC’s decision to cut its 7-day reverse repurchase rate to 1.5% from 1.7% and reduce the reserve requirement ratio for financial institutions by 0.5 percentage points. The central bank aims to support stable economic growth and high-quality development. However, industrial profit data for August showed a 17.8% decline year-on-year, following a 4.1% increase in July.
Elsewhere in Asia, Japan’s Nikkei 225 gained 1.81% despite Tokyo’s inflation rate easing to 2.2% in September, down from 2.6% in August. The core inflation rate was 2%, as expected. The yen weakened against the U.S. dollar as Japan’s ruling party prepared to elect a new prime minister, with Sanae Takaichi, an advocate for dovish monetary policies, leading the race. South Korea’s Kospi fell 0.21%, and Australia’s S&P/ASX 200 rose slightly, nearing its all-time high.
In the U.S., major indexes rose, with the S&P 500 hitting a new record, buoyed by positive economic data and a stable labor market.
Upcoming Events:
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Core PCE Price Index m/m
