US JOLTS Job Openings
The number of job openings in the US came in lower than expected on the last business day of August.
Analysts were expecting a slight decrease (5.79M) compared to July (5.87M), however, actual numbers came in significantly lower at 5.44M.
FOMC Members Dudley and George Speak
New York FED member Dudley was the first to speak yesterday, but didn’t tell us anything new. He stated that the FED take the world as it is, indicating that any rate hike has been delayed until after the elections in November.
Kansas City FED member George did an even better job by not talking about monetary policy at all during her speech.
As expected this non-news lead to virtually no price actions.
MPC Member Cunliffe Speaks
Bank of England MPC member Cunliffe appreared at the enquiry by the upper House of Lords into the effects of Brexit on financial services.
He stated that the underlying trend for the pound is still down. The November forecast for the pound will reflect this trend.
Contrary to Cunliffe’s statements Cable gained a bit in strength.
European Area Industrial Production MoM
After a decline of 1.1% in July the European industrial production increased again by 1.6% in August.
Compared to August’15 industrial production grew by 1.8%
The highest increases in industrial production were registered in the Czech Republic (+12.1%), the Netherlands (+4.4%) and Germany (+3.1%), and the largest decreases in Ireland (-13.4%), Finland (-3.5%) and Sweden (-2.9%).
German WPI MoM
The German wholesale prices index rose by 0.4% in September compared to previous month indicating that consumer prices are less likely to increase in the short term.
September wholesale prices decreased 0.3% compared to the same period last year. In August and in July 2016 the annual rates of change were –1.2% and -1.4%, respectively.
French Final CPI MoM
No change in the final CPI number for France. The preliminary number came in at 0.2% and final corrected number was the same.
Japanese Core Machinery Orders MoM
Core machinery orders for Japanese manufacturers came in better than expected. Where analysts were expecting a drop of 4.4%, the actual figure was -2.2%.
Machinery orders are a leading indicator of production as rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
Japanese Preliminary Machine Tool Orders YoY
In conjunction with the data above, Japan’s preliminary machine tool orders eased by 6.3% on a YoY basis in September, following a drop of 8.4% in the prior month.
Japanese 30-Y Bond Auction
Japanese 30 year bonds have increased in popularity as last auction resulted in a higher average yield, now at 0.51%, and an increase in the bid-to-cover ratio from 3.1 to 3.6.
Australian Westpac Consumer Sentiment
The Westpac Melbourne Institute Index of Consumer Sentiment rose by 1.1% in October from 101.4 in September to 102.4 in October.
Over the last six months the Index has held within a relatively tight 4% range with five of the six readings hovering just above 100.
Upcoming Data Releases..
Big news coming up for Thursday 13 October. We start with the FOMC meeting minutes being released which provides us with in-depth insights as to why they didn’t hike up the interest rate last September. China will be releasing its trade balance figures which will tell us whether their exports are still strong or not. Finally the usual weekly US unemployment claims and crude oil inventories will be released.
US Crude Oil Inventories
After five consecutive weeks of draw-downs in oil reserves, has the US finally replenished their inventories? We will see tomorrow.
US Unemployment Claims
Despite the steady decline in unemployment claims since August’16 , numbers have not been convincing enough for the FED to increase interest rates. Maybe tomorrow figure will tell us more about what’s in store for next month and December.
|6:01||UK RICS House Price Balance||GBP||12.0%||14.0%|
|19:30||Canadian NHPI MoM||CAD||0.4%||0.3%|
|US Import Prices MoM||USD||-0.2%||0.1%|
|21:30||US Natural Gas Storage||USD||80B||84B|
|Tentative||Chinese Trade Balance||CNY||346B||365B|