Today a string of key macroeconomic data from Asian to European hours created plenty of reasons for traders to stay focussed.
Japan 3Q GDP contracted more than expected by registering a 1.2% drop yoy, compared to consensus of down 1 percent. The setback was mainly due to adverse impact from Typhoon Jebi and large fall in exports for the quarter. USD/JPY remains largely unchanged at 113.88 area this morning, while Nikkei 225 index climbed 0.65%.
Australian wage growth Index came in line with expectations, rising 2.3% yoy, or 0.6% qoq to a decade high. This suggests continuous improvement in the labour market, which could pave the way for stronger consumer spending and thus inflation. Public sector wage growth was at 2.47%, outpacing the private sector wage growth of 2.14%. AUD/USD held on today’s gain on the back of softer US dollar, trading at 0.7225 area.
Looking forward, China industrial output and retail sales growth are both expected to slow down moderately from the previous month, as the country’s manufacturing output is under pressure from the escalating trade war and consumption market is softer. Nonetheless, renewed hope on supportive fiscal policy is likely to underpin market sentiments in Shanghai and Hong Kong.
Later in the day, a flash estimate of Germany and Eurozone GDP readings will set the tone for European market at opening. Meanwhile, UK inflation data will reveal more clues of BoE’s next move in monetary policy, following an unexpected ease in CPI in September.
Crude oil prices plummeted nearly 7% overnight as glut concern weighed and option traders got squeezed before Wednesday’s settlement time. Brent Crude broke down below a 200% downward Fibonacci Extension level of $66.5 and traded at $65.6 area this morning, the lowest level seen since March 2018. This would probably weigh on energy and offshore & marine sector but it seems that currency market is not responding to oil’s decline.
In Singapore, carrier Singapore Airlines (SIA) posted an 81% decline in its quarterly earnings, mainly due to surging fuel costs and losses from recognition of its investment in Virgin Australia (VAH). The company’s share price has fallen for a second day to S$9.33 after results.
By Margaret Yang in Singapore
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