Market movers today
In Norway, inflation data for October is due out. We estimate core inflation slowed to 1.8% y/y, from 1.9% y/y in September. For more see Scandi markets overleaf.
In the UK, focus remains on Brexit, where we have seen mixed signals on whether the UK Cabinet is about to reach an agreement on the UK's backstop proposal (backstop is the solution to avoid a harder border if negotiations on the future relationship breaks down). Besides this, we are due to get the monthly GDP figure for September (and hence the first full estimate for growth in Q3), which we estimate rose 0.1% m/m. We believe it is likely GDP grew 0.6% q/q in Q3.
In the US, preliminary consumer confidence from the University of Michigan is due out in the afternoon.
Selected market news
The positive risk sentiment in financial markets seen earlier this week did not last long. Asian stock markets fell 1-2% overnight, while the USD stayed strong and the 10Y US yield continues to trade around this year's peak of 3.23%. The oil market sold off further yesterday, with the price of Brent crude falling below USD71/bbl.
Chinese inflation data for October was published overnight. It came in roughly as expected 6 PPI was 3.3% y/y, down from 3.6% y/y in September, and CPI was 2.5% y/y, unchanged from the previous month. Hence, inflationary pressures remain muted in the Chinese economy and do not constrain the People's Bank of China from keeping an easy stance on monetary policy.
Money-supply growth in Japan is also worth keeping an eye on. Both growth in M2 and M3 money supply slowed in October to 2.7% y/y and 2.3% y/y, respectively.
To read the entire report Please click on the pdf File Below..