The Bank of Japan has removed its 10-year bond yield ceiling of 1%, challenging the long-standing belief in a central bank ‘put.’ This belief, dating back to the days of Alan Greenspan, suggested that central banks like the Federal Reserve would always step in to support falling asset markets with monetary easing. The distinction between maintaining financial stability and bolstering asset markets became less clear after the 2008 financial crisis.
The major Asian stock markets had mixed day today:
The major Asian currency markets had a mixed day today:
The above data was collected around 14:08 EST.
Gold decreased 3.88 USD/t oz. or -0.20% to 1,978.82
Silver decreased 0.19 USD/t. oz or -0.83%% to 22.710
The above data was collected around 14:11 EST.
Some economic news from last night:
Caixin Manufacturing PMI (Oct) decreased from 50.6 to 49.5
Building Approvals (MoM) (Sep) decreased from 8.1% to -4.6%
No economic news from today:
European Central Bank policymakers are considering a review of the interest rates paid on government cash deposits, potentially reducing them, to address growing losses incurred in their efforts to combat inflation. The ECB and the 20 eurozone central banks have experienced significant losses due to increased interest rates on deposits aimed at curbing lending and inflation. To mitigate these losses, discussions on the remuneration of government deposits were brought up at a recent policy meeting.
The major Europe stock markets had a green day today:
The major Europe currency markets had a negative day today:
The above data was collected around 14:16 EST.
Some economic news from Europe today:
procure.ch PMI (Oct) decreased from 44.9 to 40.6
S&P Global/CIPS UK Manufacturing PMI (Oct) increased from 44.3 to 44.8
Nationwide HPI (MoM) (Oct) increased from 0.1% to 0.9%
Nationwide HPI (YoY) (Oct) increased from -5.3% to -3.3%
The Federal Reserve’s rate-setting group, the Federal Open Market Committee, has unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July, for the second consecutive meeting, following a string of 11 rate hikes, including four in 2023. The decision included an upgrade to the committee’s general assessment of the economy. The Fed’s restrictive stance has been a factor in the surging bond yields. Chairman Jerome Powell is expected to address the rising yields, as well as his views on growth, the labor market, and inflation. Private sector payrolls in the US rose by 113,000 in October, according to the ADP National Employment Report. The figure was higher than the 89,000 in September but below the Dow Jones consensus estimate of 130,000.
Private sector payrolls in the US rose by 113,000 in October, according to the ADP National Employment Report. The figure was higher than the 89,000 in September but below the Dow Jones consensus estimate of 130,000. The report suggests that the employment picture could be darkening, as private sector payroll growth increased modestly but missed expectations. The report also showed that pay was up 5.7% from a year ago, the smallest annual gain since October 2021. Education and health services led with 45,000 new jobs, while other notable gainers included trade, transportation and utilities, financial activities, and leisure and hospitality.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a mixed day today:
The above data was collected around 14:18 EST.
The above data was collected around 14:25 EST.
Japan 0.957%(+0.6bp), US 2’s 5.01% (-0.065%), US 10’s 4.8056%(-6.94bps); US 30’s 4.98% (-0.044%), Bunds 2.761% (-4.6bp), France 3.378% (-5.2bp), Italy 4.675% (-5.1bp), Turkey 26.50% (+13bp), Greece 4.327% (+16.7bp), Portugal 3.455% (-5.6bp), Spain 3.836% (-5bp) and UK Gilts 4.493% (-2.2bp).
The above data was collected around 14:29 EST.