Chinese Mojo
November 18, 2013
The initial disappointment of investors regarding the Third Chinese Plenum has given way to euphoric relief as details of proposed reforms filtered out subsequently. A 3.3% advance in Chinese share prices was almost matched by gains of 2.7% in Hong Kong’s Hang Seng index and 2.2% in India’s Sensex. Share prices rose 1.3% in India but just 0.3% in South Korea and 0.2% in Taiwan. Stocks eased 0.5% in New Zealand and 0.3% in Australia. Japan’s Nikkei closed unchanged, but European equities are higher so far by 1.9% in Spain, 1.2% in Italy, 0.6% in Germany, 0.5% in France and 0.4% in Great Britain.
The dollar has depreciated 0.4% against the kiwi, 0.3% versus the Australian dollar, 0.2% vis-a-vis the loonie and Swiss franc and 0.1% against the euro. The yen and yuan are unchanged, while sterling has drifted 0.1% lower against the U.S. currency.
The 10-year British gilt yield rose two basis points, while the 10-year German bund is a basis point softer. Japanese JGBs are steady.
Oil and gold lost 0.5% and 0.4% to $93.38 per barrel and $1282.70 per ounce.
The euro area posted a EUR 13.7 billion seasonally adjusted current account surplus in September, smallest since October 2012 and down from EUR 17.9 billion in August. The unadjusted surplus over the past twelve reported months, EUR 191.9 billion, compares to EUR 94.5 billion over the previous statement year. The September trade surplus of EUR 14.3 billion seasonally adjusted was EUR 2.0 billion wider than in the prior month and the largest surplus since April.
The British Rightmove house price index recorded a 2.4% monthly decline in November, most since last December, but the 12-month rate of increase climbed to 4.0% from 3.8%.
Icelandic harmonized CPI inflation slowed to 3.2% in October from 3.8% in September.
Chinese property price inflation accelerated to 9.6% last month from 9.1% in September. 69 of 70 cities saw higher prices than in October 2012.
New Zealand’s performance of services index advanced to a 6-year high of 58.2 from a reading of 56.4 the month before.
Malaysian GDP grew 5.0% between 3Q12 and 3Q13, accelerating from on-year growth of 4.4% in the second quarter.
Chilean GDP also accelerated, reaching 4.7% last quarter after a 4.1% rise between 2Q12 and 2Q13.
Israeli GDP growth slowed to 2.2% from 4.6% in 2Q.
Thailand had similar 2.7% on-year growth last quarter to the 2.8% pace in 2Q.
Singapore’s trade surplus of SGD 6.7 billion last month was 47% bigger than in September.
The Hong Kong jobless rate of 3.3% in October was the same as in September.
Scheduled U.S. data arrivals today are the National Association of Home Builders housing index and the Treasury Department’s compilation of capital flows.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.