Daily Review – Wednesday 02-Nov-2016

Daily Review – Wednesday 02-Nov-2016

US – ISM Manufacturing PMI

The Institute for Supply Management’s purchasing managers index rose to 51.9 in October from 51.5 in September.

New orders, production and employment reported growing, while inventories contracted and supplier deliveries are slowing down.

 

US – ISM Manufacturing Prices

The prices index registered 54.5 percent in October, an increase from the September reading of 53 percent, indicating higher raw materials prices for the eighth consecutive month.

 

US – Construction Spending m/m

Spendings on construction work in the US reported another decline of -0.4% in September after seeing a -0.5% decline in August.

 

US – IBD/TIPP Economic Optimism

The IBD/TIPP economic optimism index gained 0.1 points in November at 51.4 compared to 51.3 in October.

The index is 3.9 points above its 12-month average of 47.5, and 2.4 points above its all-time average of 49.0.

 

US – Final Manufacturing PMI
The IHS Markit final PMI number came in slightly better than the earlier flash 53.2 number at 53.4 for October.

This was an improvement on the 51.5 result for September and the best score we had for this year.

 

US – Total Vehicle Sales

The US total vehicle sales in October are better than expected at 18.3M annually. 0.8M higher than the 17.5M that analysts were expecting.

September reported 17.8M annually.

 

Canada – GDP m/m

Canada’s GDP rose 0.2% in August, following a 0.4% increase in July.

The output of goods-producing industries rose while service-producing industries were essentially unchanged. Declines were posted in the finance and insurance sector and retail trade.

 

 

Canada – RBC Manufacturing PMI

As reported by Markit, Canada’s manufacturing PMI reported a 51.1 score in October, up from the 50.3 in September, which was a seven-month low.

 

UK – Manufacturing PMI

Markit/CIPS report on the UK’s October manufacturing PMI posted a score of 54.3, slightly down slightly from 55.5 in September, buy well above its long-run average of 51.5.

 

Japan – BOJ Policy Rate

No change announced by the Bank of Japan as 10-year government bond yields are kept at zero and short-term interest rate on some commercial bank deposits remained at -0.1%.

 

Japan – BOJ Press Conference

After announcing in September that it would refit its monetary policy tools, but giving no details as to how, the Bank of Japan announced its decision to leave its policy unchanged at a press conference.

The BOJ acknowledged it had fallen further behind its schedule to generate 2% inflation. Its new forecast tips the annual inflation rate to reach 2% around fiscal 2018, which ends in March 2019, instead of in fiscal 2017.

 

Japan – Final Manufacturing PMI

The Japanese final manufacturing PMI posted at 51.4 in October, up from 50.4 in September, the highest reading since January’16.

New orders expanded for the first time since January and employment growth accelerated to a 2.5 year high.

 

China – Manufacturing PMI

The Chinese government’s official manufacturing PMI index grew to 51.2 in October. The index came in at 50.4 the previous month.

Chinese manufacturing activity has been in expanding in seven of the last eight months.

 

China – Non-Manufacturing PMI

The Chinese official non-manufacturing PMI rose to 54 in October, 0.3 up from the 53.7 in September.

 

China – Caixin Manufacturing PMI

The Caixin China General Manufacturing PMI for October climbed to 51.2, up 1.1 compared to the previous month, the fastest growth seen in the manufacturing sector in two years.

The index readings for new orders and output for October were both much higher than in September, and those for input and output prices rose even more, indicating a return of inflationary pressure.

 

Australia – AIG Manufacturing Index

AIG’s manufacturing index returned to growth again in October after two months of contraction. The index rose 1.1 point to 50.9 in October after reporting 49.8 in September and an unexpected 46.9 in August.

However, only three of eight manufacturing sub-sectors contributed to this mild October expansion. They were printed and recorded media, petroleum and chemical products and machinery and equipment.

 

Australia – Cash Rate
The Reserve Bank of Australia decided to leave its cash rate unchanged at a record low 1.50% for the third consecutive month.

 

New Zealand – GDT Price Index

The New Zealand Global Dairy Trade (GDT) data recorded a strong increase of 11.4% in the latest auction after a 1.4% increase the previous month.

 

Upcoming Data Releases

US non-farm employment change and the EIA’s crude oil inventories are on the agenda for Wednesday 02 November. The UK will report its construction PMI as well as manufacturing PMI’s from mainland Europe’s largest economies.

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