Chinese CPI Inflation Fell to 5-Month Low
November 10, 2015
The dollar showed little net change overnight, firming 0.3% against the euro and 0.1% relative to the Swiss franc, falling 0.1% vis-a-vis the loonie, Aussie dollar and sterling, and staying flat versus the yen, kiwi and yuan.
Share prices slumped 1.7% in Hong Kong, 1.5% in India, 1.4% in South Korea, 1.1% in Indonesia and 1.2% in Taiwan. The New Zealand bourse closed down 0.8%, and those in Australia and Singapore lost 0.4%. Chinese share prices dipped 0.2%, while the Japanese Nikkei ticked 0.2% higher. In Europe, stocks have fallen by 0.4% in France, Switzerland and the U.K. and by 0.3% in Spain and Germany. Italian equities are 0.4% firmer.
A meeting of EcoFin saw eurozone finance ministers urging the Greek government to complete promised austerity and enable aid to flow.
Ten-year British gilt and Japanese JGB yields settled back a basis point, but the 10-year bund yield firmed a basis point.
West Texas Intermediate oil recovered 0.3% to $43.99 per barrel, and gold edged 0.1% higher to $1,093.04 per ounce.
Chinese CPI inflation fell 0.3 percentage points to 1.3% in October, lowest since May’s four-month low of 1.2%. Producer prices posted a 12-month plunge of 5.9% for the third straight month.
A slew of Japanese economic indicators were reported.
- September’s JPY 1.468 trillion current account surplus was smaller than forecast and lower than August’s surplus but 50% greater than a year earlier. A JPY 8.69 trillion surplus in the first half of fiscal 2015 (April-September) compares to a 2.00 trillion surplus a year earlier.
- On a seasonally adjusted basis, the current account surplus narrowed 51.2% to JPY 776 billion in September from JPY 1.59 trillion in August, as a 1.9% monthly drop in exports was five times steeper than the decline in imports.
- The “Basic Balance,” which tallies the current account and long-term capital flows, produced a September surplus of JPY 10.30 trillion, helping to explain the yen stability even as the Fed girds for an interest rate hike.
- Bank lending slowed to a 12-month growth rate of 2.5% in October from 2.6% in September and 3Q.
- Bankruptcies were 7.3% lower in October than a year earlier, down from 12-month drops of 18.6% in September and 13.1% in August.
- The economy watchers index, a gauge of conditions observed by service sector workers, rebounded from September’s 8-month low of 47.5 to a 2-month high of 48.2 in October. It was the third straight sub-50 reading and left the score just 4.2 points better than recorded in October 2014.
- Stock and bond transactions during September generated a JPY 298 billion net capital inflow.
- There was a JPY 249 billion customs trade deficit in the first twenty days of October, down from JPY 466 billion a year earlier. Imports tumbled 6.5% on year compared to a 1.8% slide in exports.
Australia’s business conditions index had a reading of 9 for a third straight time in October, but business confidence fell 3 points to a score of 2. Australian home loans rose 2.0% in September after a rise of 1.5% in August and a dip of 0.3% in July.
South African industrial production rose 1.4% last quarter.
France, Italy, Finland and Romania also released industrial production data for September. The French and Italian monthly increases of 0.1% and 0.2% were less than forecast and resulted in on-year advances of 1.8% and 1.7%, respectively. Finland’s 1.1% monthly rise in output was the first increase since June and associated with a 12-month 1.3% increase. Romanian production grew 3.4% on year, very close to the January-August on-year pace.
The British Retail Consortium reported a 0.2% on-year dip in same store sales for October, considerably weaker than anticipated. Such follows a 2.6% rise in September but a 1.0% drop in August.
Swiss unemployment in October was 3.4% seasonally adjusted, same as in September but above August’s 3.3%.
In the year to October, Norwegian consumer price inflation accelerated to 2.5%, while the 12-month decline of producer prices narrowed to 9.4%. Greek CPI deflation was roughly halved to 0.9%. Danish consumer prices increased only 0.4%, the lowest inflation rate there in eight months. Harmonized Hungarian CPI inflation was 0.2%, while harmonized consumer prices in Cyprus plunged 1.8%.
The NIFB’s gauge of small business sentiment in the United States held unchanged in October at 96.1, matching September’s 4-month high. A 16-month low of 94.1 had been recorded in June.
U.S. import and export prices are also scheduled to be released today.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Chinese CPI and PPI, foreign exchange, French and Italian industrial production, Japanese current account
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