Asian equities attempted to buck the trend overnight, despite mixed Chinese data. Industrial production fell while retail sales remained strong. Risk appetite will be subdued anyhow today, as it is Remembrance Day in Canada; Veterans’ Day in USA & a holiday in some other countries. USD lost some ground overnight as money was taken off the table.
The Euro has been annoying to trade, despite more political uncertainty in the region. A coalition of left-leaning parties has forced Portuguese Prime Minister Coelho from office, so it now falls on the President to appoint the leader of the Socialist Party as PM, find an alternative candidate or keep Coelho in place until new elections can take place in the spring. The immediate problem is that the changeover could see DBRS drop Portugal s debt from investment grade which would exclude it from the ECB s asset purchase program. Moreover, investors are starting to wonder if similar political dynamics will spread to other (more meaningful) countries of the EU.
NZD showed some back&forth action on the publication of NZ s Financial Stability Report and press conference from RBNZ Governor Wheeler. The message was largely in line with what we already knew, and the RBNZ is "on hold" for the time being.
Looking ahead: dull day with the exception of teh UK unemployment data (expected to show strength) and the Bank of England’s Open Forum, which will be attended by
ECB President Mario Draghi, scheduled to speak at 13:15 GMT (comments from Governor Carney are also expected throughout
the day).
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