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: PBOC Net Drains CNY886.9 Bln via OMO Tuesday

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

CHINA PBOC CONDUCTS CNY41.7 BLN VIA 7-DAY REVERSE REPOS TUES

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

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

US NFIB SEP SMALL BUSINESS INDEX 91.5

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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OIL: Disappointing China Fiscal Outlook Weighs On Crude, Iran Still Market Focus

OIL
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Oil prices have fallen today after rallying close to 4% on Monday driven by concern over a possible Israeli attack on Iranian oil infrastructure. Today commodities weakened as comments from China’s NDRC disappointed as they were short on details, although it will quicken fiscal spending. WTI is down 1.6% to $75.93/bbl, off the intraday low of $75.36, while Brent is back below $80 at $79.71/bbl (-1.5%) after a low of $79.18. The USD index is down slightly.

  • The situation in the Middle East could easily reverse today’s losses though. There were no signs of a reduction in fighting yesterday with rocket attacks on Israel from Iran-backed Hamas, Hizbullah and Yemen’s Houthis, while Israel struck southern Lebanon and Gaza.
  • Markets are concerned that following Iran’s attack on Israel last week, that the OPEC member will become more involved in the conflict thus risking supplies. A third of global oil output comes from the Middle East.
  • Later the Fed’s Kugler, Bostic and Collins and ECB’s de Guindos, Schnabel and McCaul speak. In terms of data, US August trade and German August IP print. There is also industry-based US oil inventory data.
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Oil prices have fallen today after rallying close to 4% on Monday driven by concern over a possible Israeli attack on Iranian oil infrastructure. Today commodities weakened as comments from China’s NDRC disappointed as they were short on details, although it will quicken fiscal spending. WTI is down 1.6% to $75.93/bbl, off the intraday low of $75.36, while Brent is back below $80 at $79.71/bbl (-1.5%) after a low of $79.18. The USD index is down slightly.

  • The situation in the Middle East could easily reverse today’s losses though. There were no signs of a reduction in fighting yesterday with rocket attacks on Israel from Iran-backed Hamas, Hizbullah and Yemen’s Houthis, while Israel struck southern Lebanon and Gaza.
  • Markets are concerned that following Iran’s attack on Israel last week, that the OPEC member will become more involved in the conflict thus risking supplies. A third of global oil output comes from the Middle East.
  • Later the Fed’s Kugler, Bostic and Collins and ECB’s de Guindos, Schnabel and McCaul speak. In terms of data, US August trade and German August IP print. There is also industry-based US oil inventory data.