Share Prices Up Ahead of ECB Press Conference

October 6, 2011

The dollar dropped 0.8% and 0.6% overnight against the Australian and New Zealand currencies.  The greenback also lost 0.3% against the yen, 0.2% versus sterling and 0.1% relative to the euro.  The Canadian dollar, Swiss franc and Chinese yuan are unchanged.

With China still closed, share prices in the Pacific Rim advanced 4.6% in Indonesia, 5.6% in Thailand, 5.7% in Hong Kong, 3.7% in Australia, 2.6% in South Korea, 2.9% in Singapore, 1.8% in The Philippines and 1.7% in Japan.  In Europe, the German Dax, Paris Cac and British Ftse have traded up by 2.0%, 1.8%, and 1.3%.

The 10-year German bund yield firmed four basis points, while Japanese JGBs and British gilts remained steady.

Oil and gold prices rose 1.1% and 0.8% to $80.52 per barrel and $1654.20 per ounce.

German industrial orders fell 1.4% in August on top of a 2.6% decline in July.  The on-year advance in August was only 3.6%, down from 9.4% in the year to June.  Orders in July-August were 1.6% lower than the 2Q average level.  Domestic capital goods orders, a leading indicator of future business investment, dropped 3.8% in August, reversing an encouraging increase in July.

The American inventor and high technology icon Steve Jobs has died.

Japanese stock and bond transactions generated a JPY 678 billion outflow last week, down from a JPY 2.187 trillion outflow in the week to September 24.

Swiss consumer price inflation accelerated unexpectedly to 0.5% on year in September from 0.2% in August. Dutch CPI inflation ticked up 0.1 percentage points to 2.7% last month. Filipino producer price inflation was at just 0.5% in August. 

Czech retail sales edged 0.1% higher in August and were 0.5% greater than a year earlier.  South Korean retail sales in September were 5.8% higher than a year before.

Spanish industrial output in August was 0.6% higher than a year earlier. Hungarian industrial production recorded a 4.4% on-year increase in August.

Hong Kong’s composite purchasing managers index fell to a 28-month low of 45.9 in September from 47.8 in August and 51.4 in July.

The German construction purchasing managers index moved back above 50, printing at 50.5 in September after 49.8 in August, 50.6 in July and 50.9 in June.

Brazil’s service sector PMI score of 50.5 was down from 52.2 in August and at a 26-month low.  The composite Brazilian PMI stayed below the 50 no-change line for a second straight month, scoring a 48.5 after 49.6.

J.P. Morgan’s global composite PMI of 52.0 in September after 51.5 in August showed a slight momentum lift last month.

Investors await the monetary policy decisions of the Bank of England and ECB.  Peru’s central bankers also meet today.  The U.S. releases weekly jobless claims data today, while Canadian building permits arrive, too.  U.S. Treasury Secretary Geithner speaks publicly.

Copyright 2011, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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