This will be our last post on China today, it really is the major market story but repitition can get so repetitious.
Plus, with the long holiday coming up things will be quieter, unless we do a pivot to Chinese travelers and the places they are going. As a side note, for whatever reason, big moves in the Chinese markets in the run-up to major holidays don't tend to follow-through after holiday contemplation and reflection on what's what.
From Marc Chandler at Bannockburn Global Forex:
Overview: The US dollar is narrowly mixed on the last trading day of Q3 24. The Australian dollar, the G10 proxy for China, is leading the major currencies higher and reached its best level since February 2023 (~$0.6940). The yen and Swiss franc continue to trade heavily and are off 0.2%-0.25%. The euro firm and traded above $1.12 for the fifth time since late August but has failed to settle above there once. The soft inflation readings have boosted the chances of an ECB rate cut in October. In the US, the focus is on the labor market, with the monthly employment report on Friday and an East Coast and Gulf dockworkers strike set to start tomorrow. Most emerging market currencies are trading firmer, but South Africa, India, Indonesia, and South Korea softer. The LDP have called for a snap election in Japan for October 27.
Beijing's cut in existing mortgage rates helped propel Chinese stocks sharply higher. The CSI 300 rallied an 8.5% and is up by more than a quarter in the past five sessions. The Hang Seng advanced by 2.8% for a nearly 16% gain over the past five sessions. The mainland markets are closed until next Tuesday. Of the large bourses in the region, only Australia and Singapore rose. The Nikkei was off around 4.8%. Europe's Stoxx 600 is off 0.65% today giving back Friday's gains plus a little more. US index futures are slightly softer. Benchmark 10-year yields are 2-5 bp higher in Europe and the 10-year US Treasury yield is nearly three basis points high near 3.78%. Gold is softer for the second session. It peaked last week a little above $2685 and is now slightly below $2650. November WTI ran up to about $69.35 before meeting sellers that drove it back to around $68. The low from the second half of last week was just below $67....
....MUCH MORE
