Regional Equity Rebound Falters

The recent rebound in regional equity market sentiment has paused today. All the major markets are weaker, while US futures are also down, albeit modestly at this stage. Eminis were last off 0.25% to 4374, Nasdaq futures are off by slightly less, -0.19%. Cash trading was mixed on Monday, US markets finishing a touch higher, but EU markets were mostly down.

• US yields remain a key watch point for equity sentiment. We are slightly lower today in yield terms, but this gives back only part of Monday's gains.
• South Korean markets have been in focus, with the Kospi and Kosdaq both down around 2.5-3% at this stage. This follows yesterday's strong gains inspired in large part by the short selling ban. Today, offshore and institutional investors have been net sellers, but retail investors are buying local shares.
• Elsewhere, Japan markets are off by around 1%, while the Taiex is outperforming at around flat.
• At the break, the HSI is off 1.5%, the CSI 300 down by 0.70%. China October trade figures were mixed, with exports weaker but the import bounce suggesting an improved domestic demand backdrop.
• Earlier the PBoC Deputy Governor stated he isn't too worried about China's current economic state, but that the old growth model driven by property is not sustainable (BBG). Government debt levels are manageably, particularly compared to international standards.
• The ASX 200 is up 0.20%, as the RBA raised rates as expected, although the statement was interpreted as dovish.
• In SEA, markets are down modestly for the most part.