Market Pulse - Currencies
We need to be patient and persistent, ECB's Draghi says
The head of the European Central Bank appeared to dampen speculation regarding the prospects for tapering its quantitative asset purchase programme somewhat at the start of the week.
FX round-up: Elections weigh on euro, kiwi until North Korea's late words
Elections in Germany and New Zealand over the weekend and an announcement of a snap vote in Japan were the dominant themes at the start of the week, until some incendiary comments from North Korea's foreign minister later in the day.
Japan's Shinzo Abe calls snap elections, seeks constitutional reform
Japanese Prime Minister Shinzo Abe has called early elections, citing the need for a new mandate in order to deal with the crisis on the Korean peninsula and for constitutional reform to strengthen the country's military.
US trade chief criticises Mexico and Canada over imports
America's top trade official pointed to the declining share of US-made parts and components in imports from Canada and Mexico to justify the need to take a "fresh look" at the North American Free Trade Agreement.
Spain delays 2018 Budget due to opposition from Spanish Basque nationalist party PNV
The political uncertainty in Catalonia has reportedly forced the country's government to postpone its push in parliament to approve the 2018 budget as Spain's Basque nationalist party (PNV) has, for the time being at least, apparently threatened to withdraw its support.
Interest rates set to tumble in Brazil, Pantheon Macroeconomics says
Consumer prices in Brazil edged higher in September but remained well below the central bank's target level, which meant policy rates were set to tumble, according to some economists.
S&P cuts China's sovereign debt rating to A+
Standard & Poor's cut its rating on China's long-term debt rating following a prolonged period of strong credit growth that has increased the country's financial and economic risks.
BoJ keeps policy unchanged despite inflation miss
Rate-setters at the Bank of Japan kept all their main policy settings in place overnight despite recent stronger-than-expected economic growth, even as inflation continued to fall short of its target by a wide margin.
Rationale for asset purchases now gone, ECB's Knot says
The stronger euro reflects the relative strength and stability of the single currency bloc's economy, a top European Central bank official said.
Bank risks policy mistake by hiking in November, Credit Suisse says
Credit Suisse changed its rate call for the Bank of England to a hike in November, adding that it would be a 'one-off' and was likely to be a "big" policy mistake.
JP Morgan lowers 2018 EPS estimate for BAE on Sterling, Saudi headwind
Analysts at JP Morgan pared their 2018 earnings per share estimate for BAE Systems again, telling clients they believed they had underestimated the headwind from the end of Eurofighter deliveries to Saudi Arabia and to account for another leg up in Sterling.
September MPC - Analysts react
"However, the MPC minutes significantly stepped up its "hawkish" rhetoric, stating that there is now a majority of MPC members that judge "some withdrawal of monetary stimulus was likely to be appropriate over the coming months. " It is as clear a signal as the MPC can give that markets should prepare for a rate rise soon, probably in November. If they do hike in November, we think it will be a mistake as UK economic activity is clearly slowing. " - Daniel Vernazza, chief UK & Senior global economist, UniCredit Bank.
Australian adds 54,000 new jobs in August, mostly full-time positions
Job growth Down Under picked-up noticeably last month, led by full-time job creation and another rise in the number of job-seekers, another potentially positive sign for the economy.
US producer prices fall shy of forecasts ahead of Harvey, Irma
Producer prices on the other side of the Pond fell shy of forecasts again last month, but economists warned a surge was soon likely even as the effects of recent hurricanes drowned out the underlying signals, as with other data recently.
No case for interest rate hikes in Australia, RBA's Harper says
Excess capacity in the Australian economy means that interest rate hikes are not justified and there is nothing the Reserve Bank can do to stymie the drop in the US dollar, one of the country's top rate-setters said.
FCA warns ICO investors risk losing everything
Britain's financial watchdog warned consumers they should be prepared to lose all the money they might invest in so-called Initial Coin Offerings.
FX Round-up: Greenback in the red, North Korean risks calm down
Monday saw some respite for the US dollar as it gained 0. 55% to 91. 859 against a basket of currencies by 1715 BST. There was also some degree of breathing room as recent North Korean missile threats died down and a classification downgrade of Hurricane Irma to a Category 1.
Commodity price strength augurs well for stocks into year-end, JP Morgan says
The rebound in commodity prices will support company pricing and profits, while helping to put in place a base for inflation readings and leading to higher bond yields, providing a key catalyst for stocks to gain into year-end, although North Korea remained a 'wild card', analysts at JP Morgan told clients.
Euro strength may have less of an impact than in the past, ECB's Coeure says
Recent strength in the single currency may have less of an impact than in the past but needed to be monitored, a top Europaen Central Bank official said.
Chinese consumer, factory gate prices accelerate in August
Inflation in China rose past forecasts last month at both the retail level and factory gate level.