The Day Today 5th November 2019

– US considers removing some tariffs on Chinese goods as a concession for a trade deal, this has been a core demand of Beijing’s negotiators
– China’s president Xi Jinping made a keynote speech at a trade expo in Shanghai which had a softer tone than last year’s when he took veiled swipes at president Trump’s trade policies
– China lowered its one year lending rate to 3.25% from 3.3%, first cut in more than three years
– China Caixin services PMI fell to 51.1 as forecast
– RBAustralia left interest rates unchanged as expected their statement included “Given global developments (risks are tilted to the downside) and the evidence of the spare capacity of the Australian economy…extended period of low interest rates will be required…prepared to ease monetary policy further if needed”
– Hong Kong business activity fell at its sharpest pace in 21 years, IHS Markit HK PMI slumped to 39.3 from 41.5 last month
– Fed’s Daly (a non-voter, one of the least important and dovish FOMC members) said last night “the last three interest rate cuts…about getting the economy in a good place” she also said it would take a “material change in the outlook” for her to consider more rate cuts

Wall Street saw all three of its main equity gauges close at record highs. Asian equity markets also advanced. The global equity feelgood factor is down to signs the US and China are nearing a trade deal
Today includes Sweden IP, US Services PMI, US Non-Manufacturing ISM and Fed speakers (neither of them that important), looks like the feelgood factor has more legs in it

The Week That Will Be

On this day in 1940 Franklin D. Roosevelt was elected to his third term in office, the first and only president of the United States elected to a third term

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.