Morning Markets: Italian banks and inflation making headlines
- Spain: consumer price index (0800 GMT)
- Italy: consumer price index(0830 GMT)
- UK: consumer price index (0930 GMT)
- UK: house prices (0930 GMT)
- Eurozone: employment (1000 GMT)
- Germany: ZEW Economic Survey (1000 GMT)
- Italy: Bank of Italy "Money & Banks" report (1000 GMT)
- US: Small Business Optimism Index (1100 GMT)
- UniCredit: Capital markets day/webcast (1259 GMT)
- China reported stronger-than-expected industrial output and retail sales
- Chinese shares extended declines despite the data
- Investors focused on PBoC monetary tightening and expected Fed rate hike
- Australian business conditions have fallen to their lowest in 19 months
- NAB's monthly business conditions index dropped to +5 in November (from +7)
- In early trade, US oil hovered below $53/barrel after Opec-fueled advance
- Aussie 10-year bonds led gains in Asia-Pacific, with yields falling 3bps
- Quarter-on-quarter growth in Australian dwelling values slowed to 1.5% from 2%
- In early trade JPY fell 0.1% to 115.15 per dollar, following Monday’s 0.3% climb
- The Korean won was highest among Asian currencies, adding 0.2% against USD
- AUD nudged back above 0.75, buoyed by rising commodity prices and USD weakness
From the Floor
Warning light. “Chinese macro data continues better than expected but it is at odds with some of the money market signals especially out of Hong Kong,” says Garnry.
Crisis management. “The Italian spread to German 10-year yields is down to 155 bps from nearly 200 before the referendum,” says Boye.
Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.
The UK's headline inflation is ticking higher – just what the Bank of England wants – but it's probably not enough to spark a rate hike, says James Picerno
Early trading in all Asian markets was volatile this morning, but the ASX did the big turnaround, first dropping steadily and then flipping to the upside, says Saxo Capital Markets
Max McKegg makes an Outrageous Prediction about ECB quantitative easing.
The US Treasury 10-year yield hit 2.5%, writes the team at Saxo APAC Sales Trading, but the USD was unable to hold gains.
China's retail sales advanced 10.8% last month compared with 10.2% expected. Photo: iStock
Morning Markets goes out on the TradingFloor platform at 0800 GMT, Monday to Friday.
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