EUROSTOXX50 TECHS

Holding Above Recent Lows

BTPS

TECHS: (Z0) Bullish Structure Remains Intact

GILTS

(Z0) Finds Resistance

SCHATZ TECHS

(Z0) Tests Initial Support

BOBL TECHS

(Z0) Corrective Pullback

BUND TECHS

(Z0) Off Recent Highs

MNI INSIGHT: BOC To Adjust, Not Expand, QE To Support Recovery

Having expanded its balance sheet to record levels, the Bank of Canada is likely to focus on calibrating, not expanding, asset purchases.

POLICY

MNI INSIGHT: BOC To Adjust, Not Expand, QE To Support Recovery

Having expanded its balance sheet to record levels, the Bank of Canada is likely to focus on calibrating, not expanding, asset purchases.

MNI INSIGHT: BOE Still To Draw Up Negative Rates Questions

Apparently differing views by policymakers on negative rates are in line with the Bank of England's cautious approach to examining whether such a move would be feasible.

MNI INTERVIEW: China Carbon Pledge To Power Green Finance

Foreign investors should be allowed to repackage green loans for sale offshore, PBOC Monetary Policy Committee member Ma Jun tells MNI.

DATA

MNI DATA IMPACT: Firms Long-Term CPI Outlook Falls: BOJ Tankan

Medium- to long-term inflation expectations at Japanese firms falls in Sept from three months ago, the BOJ's Tankan shows.

POLITICAL RISK

Mnuchin Coronavirus Relief Plan Includes More State, Local Funds (Roll Call)

Treasury Secretary Steven Mnuchin offered a $1.62 trillion COVID-19 relief proposal in talks with Speaker Nancy Pelosi on Wednesday, offering more state and local assistance than GOP negotiators have to date in a sign of potential progress toward a deal.

  • A person briefed on Mnuchin's plan said it included $250 billion for state and local governments, which is $186 billion less than Democrats want in their latest $2.2 trillion package, but $100 billion more than the White House offered in talks that broke down over the summer.
  • On unemployment insurance, Mnuchin proposed a $400 per week federal benefit, retroactive to Sept. 12 and lasting through Jan. 1, 2021, according to the source, who described the package on condition of anonymity. That's less than the $600 a week Democrats want, but $100 more than Senate Republicans have proposed.
  • Click here for full story.

Fiscal Talks Rumble On

U.S. Tsy Secretary Mnuchin tells Fox News that he will speak with House Speaker Pelosi again this evening, although he plays down the prospects of a fiscal deal being struck this evening. He points to a willingness to accept a fair compromise.

LDP SecGen Plays Down Snap Elex Chances, Will Back New Stimulus If Needed

Per the Nikkei, "Prime Minister Yoshihide Suga is unlikely to call a snap election this year to solidify his political position, Toshihiro Nikai, secretary-general of the ruling Liberal Democratic Party, indicated to Nikkei. "There are serious issues before us right now. The prime minister has made the right decision to focus on resolving those problems," Nikai said in an interview in which he expressed support for "bold" stimulus if necessary to shore up the economy."

ECONOMIC DATA CALENDAR AND EVENTS

ImpactCountryDate/timeEventData Points / descriptionforecastprevious

MNI CHINA LIQUIDITY INDEX: Conditions 'Ample' In Sept

BEIJING (MNI)

Traders look at the liquidity conditions across China's interbank market in September

MNI Technical Analysis

POLITICAL RISK HIGHLIGHTS

by Tom Lake

COVID-19 Trends and Developments

  • The 207,466 new cases recorded on September 29 is the lowest 24-hour total of new cases since August 3. This number is likely reduced somewhat by Spain's failure to release new case or fatality data for that date and as such should be viewed as an anomaly, especially given that the average daily increase in cases over the past week remains at record highs around and average of 290,000+ new cases per day.
  • Russia recorded its sixeteenth consecutive day of increasing caseloads on September 29, lifting the country's total to 1,162,428 cases. The 8,129 new cases recorded on September 29 is the highest 24-hour total in the country since June 16 and points towards a burgeoning second-wave infection. Russia remains at the forefront of the race for a potential COVID-19 vaccine, with the trials of the Sputnik-V drug going ahead with 5,000 volunteers.
  • The United Kingdom registered its highest number of new cases in a 24 hour period on September 29, with 7,143 added to the total. A total of 71 COVID-19 related fatalities were recorded in the UK on the same day, the highest daily total since July 1. The government remains under intense scrutiny due to its COVID-19 restrictions, being implemented on a regional basis rather than nationwide.
Chart 1. COVID-19 Cases and Fatalities, Nominal and % Chg Day-to-Day (5dma)

Source: JHU, MNI. As of 0600BST September 30. N.b. Each dot represents a single day's figures, data for past three months

Full article PDF attached below:

https://emedia.marketnews.com/marketnewsintl/MNI_P...

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