Asia – Chinese Aluminum imports up

This morning finds New Zealand’s Dow Jones up 2.51% and the Nikkei +0.92% while the Hang Seng is down 0.84% with China mixed.

The Yen gained some traction overnight after the national Customs Office reported a ¼ mn yen increase in the nation’s trade surplus to ¥413.2 bn in August and an ¥0.7 tn increase in the current accounts surplus to ¥2.1tn.

Europe – Galhau: Leave London

European indices closed mixed yesterday, the CAC40 losing 0.28% and the FTSE 0.06%. The DAX was up 0.17%.

The Euro has been trending sideways after France reported a deterioration in August’s trade balance. This morning, Germany reported a surprising €4 bn reduction in its August trade surplus to €15.7 bn.

In the UK house prices also worsened – falling to 1.6% MoM by Halifax’s September count and 2.3% YoY in July, according to the Office for National Statistics, while the Royal Institution of Chartered Surveyors reported a much better than expected 61% increase to an 18-year high in September. On the other hand, a Reuters’ poll reports improvements in the UK financial sector as earnings from insurance and investment services grow.

Bank of France Governor Francois Villeroy de Galhau yesterday said financial firms should relocate from London quickly, even if a Brexit deal is finalised, this after UK negotiator David Frost said Britain will abandon talks after the 15th.

Americas – Fed at loggerheads

Despite Trump’s nixing of COVID recovery aid, US indices keep climbing, the Russell2000 adding 2.19% yesterday followed by the DOW’s 1.91%.

The dollar continues weakening after the FED reported a $7.22 bn contraction in consumer credit for August. Yesterday’s minutes show a policy split on forward strategy regarding the level of monthly bond purchases, especially in light of the administration’s refusal to implement a new COVID aid bill. A more hawkish approach is being endorsed by some, like New York’s John Williams, while the doves are represented by Chicago’s Charles Evans.

Commodities – Oil: Delta approaching

As Hurricane Delta approaches the US, closing down some production activities, US Oil bounced off support at $39.32 to stabilise at $40 per barrel after the EIA reported a ½ mB increase in oil stocks.

And gold peaked at 1898 before returning to an 1890 range.

Corporate – FB to ban ads AFTER US vote

Ahead of next week’s Q3 earnings report, Wells Fargo (+2.61%) yesterday announced a 700-job cut in its commercial sector.

And Facebook (-0.21%) said it would ban political ads after the elections. Still ahead today, dividends from GlaxoSmithKline.

Events