Asian markets open the week mildly lower and stay soft after release of a batch of China data. The forex markets are generally staying in tight range. Q3 GDP growth in China slowed to 6.9% yoy, below government's target of 7.0%. But that was slightly better than market expectation of 6.8% yoy. Retail sales rose 10.9% yoy in September versus expectation of 10.8% yoy. The closely watched industrial production and fixed assets investments were weak. Industrial production slowed to 5.7% yoy in September versus expectation of 6.0% yoy. Fixed asset investments slowed to 10.3% yoy in September versus expectation of 10.8% yoy.
In Japan, former BoJ board member Nobuyuki Nakahara, also an advisor to prime minister Shinzo Abe, said that there is no need for further stimulus as exchanges rates are moving calmly. He noted that a big move in the currency markets could be the trigger for BoJ to expand stimulus but there is no such move so far. And, BoJ could afford to wait and take actions later. There are some speculations that BoJ would announce new measures at the October 30 meeting.
The economic calendar is light today. US will release NAHB housing market index. Germany will release Bundesbank's monthly report. FOMC member Brainard and Lacker will speak again. Fed chair Yellen, FOMC member Dudley and Powell will speak tomorrow. Looking ahead, it's an important week in Canada with federal elections, BoC rate decision and release of retail sales and CPI. ECB will announce policy decision and hold press conference. RBA will release meetings. Here are some highlights for the week.
- Tuesday: RBA minutes; Swiss trade balance; German PPI; US housing starts and building permits.
- Wednesday: UK public sector net borrowing; BoC rate decision
- Thursday: UK retail sales; ECB rate decision; Canada retail sales; UK jobless claims, existing home sales
- Friday: Eurozone PMIs; Canada CPI