Japan Enthrones a New Emperor and Brexit Vote Running Short on Time

October 22, 2019

Japanese markets were closed Tuesday for the enthronement of Naruhito as emperor.

British Prime Minister Johnson failed to secure permission Monday for a Brexit vote. In this continuing cliff hanger, he hopes to hold two votes today, one to show sufficient support for the deal he struck with the EU and a second to determine if enough time remains to enact the law by the October 31st deadline.

Policymakers at Hungary’s central bank are holding their monthly interest rate review today.

Markets are generally calm, and there haven’t been notable data releases today.

The dollar is unchanged against the euro, yen, loonie, sterling, and Australian dollar but it shows a 0.3% rise relative to the Swiss franc and is down 0.3% versus the peso.

10-year sovereign debt yields are down across the board including slides of 3 basis points in Germany and 2 bps in the U.S. and Great Britain.

Share prices in the Pacific Rim are up 0.8% in Taiwan, 0.7% in Singapore, 0.3% in New Zealand and Australia, 0.5% in China and 0.4% in Indonesia but down 0.9% in India. The British and German bourses have risen 0.5% and 0.3% thus far.

Prices for oil and gold firmed 0.3% and 0.2% overnight.

British public sector net borrowing of GBP 40.3 billion in the first half of fiscal 2019-20 was 21% greater than a year earlier. At end-September, outstanding public debt equaled 80.3% of GDP.

Spain ran a trade deficit of EUR 21.18 billion in the first eight months of 2018 versus EUR 20.89 billion a year earlier. The August deficit of EUR 3.98 billion was at an 8-year high.

Dutch consumer confidence improved an index point to -1 in October but was 10 index points lower than its end-2018 level.

The monthly British industrial trends survey in October produced the weakest reading for orders since March 2010.

CPI inflation in Hong Kong decelerated to a 4-month low of 3.2% in September from 3.5% in August.

South Korean producer prices were 0.7% lower in September than a year earlier, marking the greatest 12-month drop in three years and the third straight on-year decline in a row.

Still ahead: Hungary’s monetary policy announcement, U.S. existing home sales, Canadian retail sales data and the Bank of Canada’s business outlook survey.

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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