- U.S. indices closed yesterday’s session with slight declines. U.S. CPI inflation fell once again, to its lowest level in a year, but the decline was smaller than expected (2.4% vs. 2.3% forecast and 2.5% previously), and the monthly increase was 0.2%, vs. 0.1% expectations. The base CPI also unexpectedly rose to 3.3% from 3.2% previously.
- The hawkish data’ balanced benefit claims, which rose to 258,000, although the market expected a trace increase to 230,000 from 226,000 previously. As a result, the market priced in a total of 50 bps of rate cuts in the U.S., still on the table this year. The Fed’s Bostic, however, signaled that he would not mind if rates remain unchanged in November, when justified by the data
- Today before the session, investors will learn the quarterly financial results of the largest US banks: JP Morgan, Wells Fargo and BNY Mellon, as well as the BlackRock fund
- China’s Hang Seng index gains nearly 3% today, following reports that the PBoC has launched a 94.2 billion yuan weekly ‘reverse repo’ at an interest rate of 1.5%. South Korea’s exports to China rose more than 22% month-on-month in October
- China’s Ministry of Technology, Ministry of Infrastructure and the State Administration in charge of market regulation announced a special briefing on Monday. Investors, as a result, are building further expectations for a potential expansion of the stimulus package
- Sentiment outside of China, in Asia was mostly mixed. Japan’s Nikkei gained nearly 0.6%, although South Korea’s is trading flat. India’s Sensex is trading 0.3% lower. US and European index futures lose slightly
- The dollar is gaining slightly today, with US 10-year bond yields falling slightly, by 2.7 bps, to 4.067% today. NZDUSD gains after PMI data from New Zealand, where manufacturing data pointed above 46.9 points versus 45.8 previously; the country’s Food Price Index rose 0.5% on the month, versus 0.2% forecasts
- Cryptocurrency market sentiment remains mixed, although Bitcoin managed to recover some of its losses from around $58,000 to nearly $61,000 today. Agricultural commodity contracts are trading slightly higher, energy commodities like oil are also gaining slightly. Brent crude oil is trading above $79 per barrel
- KAN reports that Israel has still not made a decision on its response to the Iranian attack. While the Pentagon has indicated that it maintains open communication with Israel, recent reports indicate some divergence, on both sides. The U.S. has indicated that it is surprised to learn of the potential shelling of UN peacekeeping positions by the Israeli military and will await clarification
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