Asian equity markets are sharply higher, tracking the rally in the US on Friday where a disappointing September non-farm payrolls along with a significant downward revision to the prior month raised a question over the durability of recovery in employment and greatly diminished expectations for a Fed liftoff this year. Shanghai Composite remains closed for holiday. Investors are also shrugging a World Bank report that lowered China 2015 GDP target below the official forecast of 7% to to 6.9% from 7.1% and 2016 GDP outlook to 6.7% from 7.0%. Moreover, the likelihood of lower US rates for longer defused a call by a PBoC official for China to continue fine-tuning policy rather than implement more decisive stimulus measures. Ahead of this week's BOJ decision, a Nikkei report speculated the central bank would lower its economic and inflation forecast at the biannual outlook on Oct 30th and push back expectation for 2% inflation target from the current H1 of FY16. The BOJ may also use this week's meeting to signal it would consider boosting QE at that Oct 30th decision. Incoming economic data continued to justify added easing - wage inflation missed expectations for a modest growth, while Services PMI also showed some pronounced deterioration. Markit economist said the "data pointed to a slowdown in the expansion of the Japanese service sector" though "employment growth resumed in September and at a rate that was the strongest since November last year."..Electronic trade in the energy markets was somewhat more volatile than usual after reports that Saudi Arabia cut the price of light-crude oil deliveries to Asia by $1.70/brl, possibly signalling a price war with other exporters. WTI fell about 1% to $45.20 but then rose back to $46/brl on lower USD along with some geopolitical worries over expanded campaign in Syria by Russian military.
Nikkei +1.60% Hang Seng +1.36% Shanghai Closed
Eur$ 1.1233 CNY 6.3561 JPY 119.98 GBP 1.5211 EURCHF 1.0904 RUB$ 66.3452 WTI $45.76 (+0.48%)
S&P -0.06% EuroStoxx+2.11% Dax +1.98% SMI +1.87%
Macro :
- Nikkei Japan Sept. Composite PMI 51.2 vs 52.9 in Aug.
- Netanyahu Says He Is Ready to Move on After Iran Nuclear Deal
- IMF Lowers Forecast for Ukraine’s 2015 GDP to -11%
- Dudley Says Work Needed on Tools to Avert Financial Crises
- Kocherlakota Says Low Inflation Warrants Further Fed Stimulus
- Fed’s Rosengren Says 2% Growth Needed for Rate Liftoff This Year
Keep an eye on :
- ABE SM : Abertis Sees EU1.9b Investments in Brazil Through 2020: Cinco
- ANA SM : Acciona to Acquire 13.3% Additional Existing Nordex Shares
- AIR FP : Emirates Won’t Decide on A350 Vs Boeing 787 Order This Yr: Clark
- ALT NA : Funds Said in Talks to Buy Over $1 Billion Cablevision Stake
- AREVA FP : French PM Valls Says Open to Alliance on Nuclear: Asahi
- AKE SM : Arkema CEO Sees Slower Economic Growth in China, Les Echos Says
- BKIA SM : Bankia’s Chairman Says It Should Eventually Be Privatized: Papel
- CLN VX : Clariant CEO Sees U.S. Shale as Hunting Ground for Acquisitions
- AM FP : Qatar in Talks to Buy Eurofighter Typhoon Warplanes: al-Sharq
- DGE LN : Diageo's Sterling Vineyards likely to interest Treasury Wine Estates, other brands likely to be avoided
- EDF FP : EDF May Seek to Sell Its Stake in Edison: Repubblica
- EDF FP : EDF Raises $1.5B Selling 30-Year Bonds in Taiwan, Echos Says
- FRE GY : +ve article in the Barron's
- GLEN LN : 805 HK +43% now after being up more than 65% in heavy volume on Telegraph article & interest comment
- GVNV NA : GrandVision Agrees to Buy U.S. Optical Retail Chain For Eyes
- HAV FP : Havas Acquires Market Researcher CSA, Intervalles From Bollore
- HSBA LN : ICBC Said to Study Buying HSBC Argentina Operation: Perfil
- SDF GY : Potash Corp. Withdraws Proposal to Negotiate a Deal With K+S
- MRW LN : Morrison Scraps Price Matching Strategy, Financial Times Says
- NOVN VX : Alcon Gets FDA Approval For Pre-Loaded Intraocular Lens System
- UG FP : Peugeot in Talks With Tatas to Make Cars in India: Times Link
- PRU LN : U.K.’s Prudential May Move Headquarters to Asia: Sunday Times
- RCS IM : RCS Mediagroup to Sell RCS Libri to Mondadori
- CFR VX : Vacheron Constantin Sees Single-Digit Growth This Year: Le Temps
- RR/ LN : Rolls-Royce to Cut 400 Mgmt Jobs in Marine Division, FT Says
- RYA LN : Ryanair’s O’Leary Aims to Cut Ticket Prices to EU25, Welt Says
- SAB LN : SABMiller key director may need to sit out AB InBev talks
- SCHAEFFLER IPO : *SCHAEFFLER PRICE RANGE SET AT BETWEEN EUR12.00, EUR14.00/SHR
- TECH FP : Technicolor ’17 Adj. Current Op. Profit to Remain Above EU500M
- VOW3 GY : VW Scandal Spreads to More Executives: Frankfurter Allgemeine
- VOW3 GY : VW’s Poetsch Said Company Threatened by Scandal, Welt Reports
- VOW3 GY : VW Engineers Admit Installing Cheating Software, Bild Says
- VOW3 GY : Volkswagen to Hold Extraordinary Board Meeting Weds.: Reuters
- VOW3 GY : VW Chief Warns Cheating Scandal May Threaten Company’s Existence