Dollar Mostly Unchanged Overnight, Share Prices and Sovereign Debt Yields Slip a Bit

November 26, 2019

The dollar is unchanged from Monday closing levels against the yen, Swiss franc, kiwi and Australian dollar and has moved no more than 0.1% versus the euro, loonie, yuan and peso. A bigger dollar change of 0.4% occurred against sterling. The 10-year British gilt yield fell three basis points.

Ten-year U.S. Treasury, German bund, and Japanese JGB yields are a basis point lower.

Stock markets fell 0.7% in Indonesia, 0.4% in Singapore, 0.3% in Hong Kong and 0.2% in India but rose 0.4% in Japan, 0.7% in New Zealand and 0.8% in Australia. Share prices in Europe are somewhat weaker.

WTI oil has risen 0.4%, while Comex gold remains flat.

China’s index of leading economic indicators posted their biggest monthly advance in October in at least a half year.

Japanese corporate service prices reflected a rise of the sales tax to 10% from 8% virtually in full. The CSP index went up 1.9% last month, lifting its 12-month rate of increase to 2.1% from 0.5% seen in September.

Hong Kong’s trade deficit narrowed to HKD 30.59 billion in October from HKD 31.64 billion in September and HKD 44.5 billion a year earlier, but the big story was the accelerated on-year declines of 9.2% in exports and 11.5% in imports.

On-year growth in Singaporean industrial production of 4.0% in October was the most since November 2018.

New Zealand retail sales advanced 1.6% on quarter and by a 7-quarter high of 4.5% on a year-on-year basis during the third quarter of 2019.

Consumer confidence in Germany bounced up 0.1 point from November’s 5-year low to a reading of 9.7 in December. That’s still 1.1 points lower than last February.

Swedish PPI inflation rose to a two-month high of 0.9% in October.

Despite a 0.3% monthly decline, Danish retail sales on a year-on-year basis rose 1.2% in October, the most since July.

Finnish unemployment of 6.2% in October was a tad less than 6.3% a year earlier.

South Africa’s leading economic index fell 0.6% in in September, marking the fourth slide in five months.

Jay Powell again spoke optimistically about the U.S. economic outlook, and chief economist Lane at the European Central Bank said pessimism there has lessened somewhat. Lane also reaffirmed the bank’s readiness to counter any renewed slide in projected inflation.

Investors await the FHFA and Case Schiller measures of U.S. housing prices.

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

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