MNI China Daily Summary: Tuesday, October 8

MNI BRIEF: Japan's Sept Sentiment, Outlook Indexes Fall

MNI BRIEF: China Local Govs To Speed Up Fiscal Spending

MNI BRIEF: Brazil Requires Prudent Monetary Policy - Galipolo

MNI: PBOC Net Drains CNY886.9 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.0709 Tues; +4.18% Y/Y

EZ/UK Bond Supply Calendar: UK, DE Auction on Wednesday

MNI: US REDBOOK: OCT STORE SALES +5.3% V YR AGO MO

MNI: US AUG TRADE GAP -$70.4B VS JUL -$78.9B

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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EM FX: Emerging Market Currencies Mixed Amid Lack of Additional China Stimulus

EM FX
BulletEM BulletEmerging Market News

Emerging market currencies are mixed at the start of Tuesday trade, despite a mildly softer course for the USD this morning. Comments from Fed’s Kugler's leant dovish - flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market. Meanwhile, China said it’s confident in reaching its economic targets this year and promised to further support growth, but fell short of announcing any major additional stimulus measures.

  • CNH performance closely tracked the performance of onshore equities across Asia-Pac trade, with initial equity weakness helping push USD/CNH higher, and prompting Hong Kong-listed equities to sharply retrace last week’s gains. Since then, USD/CNH has faded from intra session highs, last near 7.05, as equity sentiment stabilised. The CSI 300 ended the session up 6%.
  • The accompanying slump in metals has prompted notable underperformance for the South African rand - with iron ore futures in Singapore down around 5% and copper trading at a multi-week low.
  • On the other hand, CE3 currencies have shown resilience and have partially moderated some of yesterday’s losses, with regional focus shifting to CPI data out of Hungary and Czechia later in the week.
  • USDMXN is trading around 0.2% higher, though price is well-contained within Monday’s ranges. Yesterday evening, Bloomberg reported that Mexico’s Supreme Court has agreed to review the judicial overhaul passed by Congress last month in what is the last resort to appeal the controversial decision.
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Emerging market currencies are mixed at the start of Tuesday trade, despite a mildly softer course for the USD this morning. Comments from Fed’s Kugler's leant dovish - flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market. Meanwhile, China said it’s confident in reaching its economic targets this year and promised to further support growth, but fell short of announcing any major additional stimulus measures.

  • CNH performance closely tracked the performance of onshore equities across Asia-Pac trade, with initial equity weakness helping push USD/CNH higher, and prompting Hong Kong-listed equities to sharply retrace last week’s gains. Since then, USD/CNH has faded from intra session highs, last near 7.05, as equity sentiment stabilised. The CSI 300 ended the session up 6%.
  • The accompanying slump in metals has prompted notable underperformance for the South African rand - with iron ore futures in Singapore down around 5% and copper trading at a multi-week low.
  • On the other hand, CE3 currencies have shown resilience and have partially moderated some of yesterday’s losses, with regional focus shifting to CPI data out of Hungary and Czechia later in the week.
  • USDMXN is trading around 0.2% higher, though price is well-contained within Monday’s ranges. Yesterday evening, Bloomberg reported that Mexico’s Supreme Court has agreed to review the judicial overhaul passed by Congress last month in what is the last resort to appeal the controversial decision.