Forex Overnight: EUR trading firmer
The EUR has strengthened against the major currencies this
morning ahead of the German ZEW economic sentiment index later
today which is expected to show an improvement for October.
Additionally, investors are keeping tap on the US industrial
production data scheduled later today which is expected to reveal a
monthly rebound for September. At 5 am GMT, the EUR is trading 0.2
percent higher against the USD at USD 1.2963 while it is trading
0.1 percent higher against the GBP at GBP 0.8067.
The AUD has strengthened 0.1 percent against the USD. The
minutes of the Reserve Bank of Australia's (RBA) latest monetary
policy meeting indicated that the weak outlook for the nation's
economic growth prompted policymakers to take an accommodative
stance.
UK Stocks: Likely to open in the
green
The FTSE 100 is expected to open 30 to 31 points in positive
territory. Consumer Price Index (CPI), Retail Price Index,
Producer Price Index and ONS House Prices are the key economic
indicators slated for release today.
GKN,
Bellway, N Brown
Group, Spirit Pub
Company and Smiths
News are scheduled to announce their results
later today.
The Financial Times has reported that the UK government and
regulators would give approval to Royal Bank
of Scotland this week to exit the state-backed
insurance scheme covering the bank's old "toxic assets". Nat
Rothschild, one of the founders of
Bumi, has resigned from his position with
immediate effect and indicated that the board's proposal to split
out assets from the company is not in the interest of
shareholders.
Asia: Trading stronger
Asian markets are trading higher this morning tracking
overnight gains on Wall Street.
In Japan, Softbank
Corporation has surged after it agreed to buy
about 70.0 percent of Sprint Nextel Corporation for a consideration
of USD 20.1 billion.
Sonyand
Kyocera have advanced following
better-than-expected US retail sales data for
September. Nissan Motor is
trading higher after the company along with its partner, Renault
SA, stated that they expect to increase the efficiency savings by
two-fold by 2016. Toyota
Motor has inched up amid reports that it would
idle production at a joint venture plant in Tianjin due to weak
demand for its cars in China following anti-Japanese sentiments
triggered by a territorial row. On the other hand,
Kirin Holdings has tumbled after it
lowered its 2015 sales forecast. At 5 am GMT, the Nikkei 225 has
gained 1.3 percent to trade at 8,687.5.
European Stocks: Expected to open higher
The DAX and the CAC are likely to open 50 points and 28 to
29 points firmer, respectively. German ZEW Survey - Current
Situation & Economic Sentiment Indices, Eurozone CPI, Trade
Balance & ZEW Survey - Economic Sentiment Index and Italian
Trade Balance are the key economic indicators scheduled for release
today.
Castellum AB, Fabege
AB, I M Skaugen
SE and Aerowatt
SA are scheduled to release their results
today.
LVMH SA has reported a
slowdown in its third quarter sales growth.
Vivendi SA's Chairman and CEO, Jean-Francois
Dubos, has been appointed to the board of directors of Activision
Blizzard, in which the former has a 60.0 percent
stake.
Macro Update
RBA saw scope for a rate cut, indicates
minutes
The minutes of the RBA's latest monetary policy meeting has
indicated that policymakers saw scope to cut benchmark interest
rates, citing a weak outlook for the nation's economic growth due
to lower resource investment in the mining industry and a slowdown
in global economic growth.
Fed's bond purchase plan meant to be flexible, says
Williams
John Williams, the President of the Federal Reserve (Fed)
Bank of San Francisco, has stated that the central bank's recent
bond purchase programme is meant to be flexible in terms of size
and time and added that the Fed would adjust it in accordance to
its impact on the economy.
New Zealand's consumer price inflation
eases
Annual consumer price inflation in New Zealand has eased to
0.8 percent in the third quarter of 2012 compared to a 1.0 percent
rate reported in the p