Asian equities has much to digest overnight, after FOMC, RBNZ, Chinese data and Japan industrial production (which surprisedthe market at 1% vs -0.6% expected). This is a turnaround from August’s 1.2% drop. This of course is another piece to the BoJ policy puzzle but 1 piece of data is not likely to change a policy maker's mind. UsdJpy bids are reported around 120.50 and offers 121.50 for what it's worth. The tone is decisively bullish on equities today.
FOMC has given new life to the USD rally, stepping up the tone and leaving the door open for December, cutting the previous reference to "global economic and financial developments", and adding that "household spending and business fixed income investments increasing". So USD is a clear buy on dips again and EurUsd, GbpUsd and AudUsd look like the clearest situations to target.
As an update from China's plenum session, Chinese Premier Li Keqiang said an annual 6.53% growth in the next five years until 2020 is needed in order to meet the government's target of building a moderately prosperous society. The PBoC added that QE is not on the table currently, but further policy measures are available to sustain the economy if needed.
Looking ahead, the BoJ policy announcement is most eyed, but today we get German Unemployment & CPI, Eurozone Economic Confidence, US Initial Jobless Claims & Q3 GDP. Furthermore, Atlanta Fed President Lockhart speaks today as well as ECB's Constancio.
Charts for Today:
S&P Mini - Daily Chart
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