New Overnight Developments Abroad: Dollar Lower… Stocks Fell in Asia But Higher in Europe

November 2, 2009

The dollar lost 0.6% against the euro, 0.5% against the Swiss franc, Aussie dollar and kiwi, 0.3% against the Canadian dollar and 0.1% versus the yen.  Sterling fell 0.3% against the dollar and more against other currencies.

Stocks in Asia have lost 2.3% in Japan, 3.1% in Pakistan, 4.3% in Vietnam, 1.4% in South Korea, 1.0% in India, and 1.2% in Thailand.  China’s bourse advanced 3.4%, but Australia’s lost 2.2%.  French, British, and German stocks are up 0.6%, 0.5%, and 0.1%.

The yield on 10-year JGB’s dropped four basis points to 1.38%.  Gilt yields are higher.

Oil and gold recovered 1.4% and 1.3% to $78.05 per barrel and $1054.30 per ounce.

U.S. clocks were moved back an hour to Standard Time on Sunday.  Eastern Standard Time is five hours different from GMT.  Several countries observing All Soul’s Day.  Central bank meetings this week are being held in the United States, Euroland, Britain, Australia.

Many factory-sector PMI readings for October have been released, and the ISM will be releasing the U.S. score at 15:00 GMT.

  • Euroland’s PMI was 50.7, same as the flash indication and up 1.4 points from September.  The previous reading above 50 was in May 2008.
  • The French PMI of 55.6 was the best reading since November 2006, 3/10ths better than the preliminary indication and 7.5 points greater than three months earlier.
  • Germany had a 51.0 reading, up from 49.6 in September and a low of 32.0 last January.
  • Italy’s PMI was 49.2 after 47.6 in Setpembe3r and 44.2 in August.  The orders subindex exceeded 50 for the first time since August 2007.
  • Spain with a score of 46.3 remains very problematic.  This followed 45.8 in September and 47.2 in August.
  • Britain’s PMI posted the third largest month-to-month improvement in the history of this data series, advancing to a 23-month high of 53.7 from 49.9 in September.  There was evidence of inventory rebuilding.
  • The Greek PMI dipped 0.5 to 48.0 and was 3.1 points less than two months earlier.
  • The Irish PMI improved 1.4 points to 48.0, highest since February 2008. Production and orders have been less than 50, that is contracting, for 20 months.
  • The Czech PMI edged up to 49.8 from 49.5 in September and 47.0 in in August.
  • The Polish PMI climbed 0.6 points to 48.8. Hungary’s PMI fell 0.8 to 48.2.
  • The Swiss PMI dipped 0.3 to a still-solid score of 54.0 and was 9.7 points higher than in July.
  • Sweden’s PMI again strengthened to 56.7 from 55.9 in September and 54.3 in July.
  • The Dutch PMI returned to August’s 50.5 from 50.0 in September.
  • China’s PMI advanced to a two-year high of 55.4 from 55.0.
  • Taiwan’s PMI rose 2.3 points to 59.8.
  • South Korea’s PMI settled back two-tenths to 52.5.
  • South Africa’s PMI increased 1.7 points to a 16-month high of 47.6.
  • The Turkish PMI dropped 0.5 to 52.8 but surpassed 50 for a sixth straight time.
  • Australia’s PMI slid 0.3 to 51.7.  The production and orders indices both exceeded 50 but the employment index showed contraction.

Australia’s government revised projected GDP growth for 2009 upward to 1.5% from minus 0.5% but left its government deficit expectation virtually unchanged.

Australian house prices jumped 4.2% last quarter and by 6.2% from 3Q08.

Britain’s Hometrack house price index firmed 0.2% between September and October, cutting the 12-month rate of decline to 4.2% from 5.6%.

Norwegian house prices increased 12.1% in the year to October.

New car sales in France were 20.1% greater in October than a year earlier.  The on-year gain in September had been 14.1%.

Japanese domestic auto sales shot up 12.6% in October from October 2008.

Hong Kong retail sales rose 2.4% in the year to September.

Indonesian consumer price inflation slowed to a 12-month climb of 2.6% in October from 2.8% in September.

Finland’s trade deficit widened 32% from July to EUR 99 billion in August.

South Korea recorded a $3.79 billion trade surplus last month, but exports and imports posted on-year declines of 8.3% and 16.3%.

Thai consumer price inflation was positive in October, albeit just 0.4%, for the first time after nine consecutive red-ink entries.  Core CPI remained negative at minus 0.1% from a year earlier.

Aside from the PMI report, The U.S. releases construction spending data today.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


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