Softer Equities and No Trade Deal Yet
November 19, 2018
Stocks have begun another week on a downbeat. The DOW is off slightly more than 1.0%. Share prices fell 0.6% in Germany, France and Australia but firmed 0.7% in Japan.
The dollar is softer, too, with losses of 0.4% versus the euro, 0.3% vis-a-vis the yen and sterling, and 0.2% against the Canadian dollar. However, the dollar has strengthened against kiwi, Aussie dollar and peso.
WTI oil dropped 1.3%. Gold is little changed.
Ten-year sovereign debt yields fell 4 basis points in the U.K. and a basis point in Japan but edged a basis point higher in Germany. The 10-year Treasury yield is unchanged.
Japan’s customs trade deficit more than doubled in seasonally adjusted terms to JPY 303 billion in October from JPY 142 billion in September, and the unadjusted trade balance swung to a JPY 449 billion in October from a JPY 279 billion surplus a year earlier.
Euroland’s current account is also getting pinched by U.S. protectionism. The seasonally adjusted surplus fell to EUR 17.0 billion in September from JPY 24.3 billion in August and to EUR 60.9 billion in 3Q from EUR 94 billion in 2Q and EUR 105.8 billion in the first quarter of 2018.
Construction output in the euro area jumped 2.0% in September but rose just 0.8% on average between 2Q and 3Q.
Bank of Japan Governor Kuroda expressed concern that ultra-stimulative monetary policy is squeezing regional bank profits.
U.S.-Sino trade negotiators had planned to meet in Washington this week but instead have moved such work to Argentina where the G20 annual summit is being held at the end of this month.
Thai GDP stagnated last quarter, resulting in the slowest on-year growth (3.3%) since the final quarter of 2.16.
New Zealand producer output and producer input inflation accelerated last quarter to 3.6% and 4.0%, respectively. The New Zealand services PMI edged up 0.2 points to a 5-month high of 55.4 in October.
The U.S, National Association Home Builders housing index fell more than forecast to 60 in November from 68 in October.
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: euro area current account, Japanese trade balance, New Zealand PPI
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