Softer Energy Prices, Stronger Yen

October 27, 2015

West Texas Intermediate oil fell 1.2% to $43.98 per barrel, and natural gas costs slipped to a three-year low.

The yen is 06% stronger against the dollar, which otherwise firmed 0.2% relative to the loonie and 0.1% vis-a-vis sterling and the Swiss franc.  The euro, yuan and Aussie dollar are unchanged.

Share prices mostly fell in Europe and Asia.  Losses amount to 0.9% in Japan, 1.0% in Singapore, 0.8% in Spain, 0.5% in Switzerland, Taiwan and France, 0.4% in Germany and 0.3% in Britain.  Chinese equities edged up 0.1%.

Comex gold edged up 0.3% to $1,166.08 per ounce.

10-year sovereign debt yields slipped two basis points in Japan and Britain.

Eurozone M3 money grew 4.9% in the year to September and 5.0% between 3Q14 and 3Q15.  Bank loans expanded 1.1% and 0.1% respectively to households and firms during the year to September.

Corporate service prices in Japan slid 0.1% on month and decelerated to a 0.6% 12-month rate of increase in the year to September.

Chinese profits fell 0.1% on year in September after a much sharper August-over-August plunge.

British GDP growth slowed to a quarterly 0.5% pace in 3Q because of a 2.2% slide in construction.

Several Swedish economic indicators were reported.  PPI deflation held steady at minus 1.4% in September.  The trade surplus of SEK 3.3 billion was almost three times larger than a year earlier.  The economic tendency gauge jumped 1.2 points to 108.3 in October thanks largely to a strong improvement in manufacturing confidence.

Finnish consumer confidence fell 2.9 points to a 12-month low of 1.3 in October.  But South Korean consumer sentiment rose a point to a 5-month high of 105 in the same month.

The Swiss UBS consumption indicator also edged higher in September.

South African unemployment increased a half percentage point to 25.5% last quarter.

Brazilian PPI inflation accelerated to 7.8% in September.

New Zealand posted an NZD 1.222 billion trade deficit in September, larger than August’s shortfall and bigger than forecast.

Scheduled U.S. data to be released today are the Richmond Fed manufacturing index, durable goods orders, the Case Shiller home price index, a preliminary estimate of the services PMI from Markit Economics, and the weekly Johnson Redbook measure of chain store sales.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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