From Marc Chandler at Bannockburn Global Forex, October 21:
Overview: The US dollar is firm to start the new week. The Japanese yen and Australian dollar are the heaviest with in the G10 (~0.30%). The euro and sterling are trading heavier but inside the pre-weekend range. The market anticipates the Bank of Canada to deliver a 50 bp rate cut in the middle of the week, and the Canadian dollar is threatening to extend its losses for the fourth consecutive week. China's prime lending rates were cut by 25 bp, slightly more than expected, and officials signal there is scope for further easing before year-end. All, but a few emerging market currencies weaker today.
Outside of Japan and Hong Kong, the large equity markets in the Asia Pacific region were mostly firmer. Not so in Europe, where the Stoxx 600 is nursing a small loss after rising a little more than 1% over the past two sessions. US index futures are also softer. Bond markets are under pressure in Europe. Benchmark 10-year yields are up 4-5 bp. The US 10-year Treasury yield is nearly three basis points higher at 4.11%. Gold's run is extending into a fifth session today, the longest advance since a seven-day streak in March-April. December WTI is about 1.7% higher to near $70. It fell by nearly 8.25% last week, its largest fall drop in 4 1/2 years.
Asia Pacific
With a light regional economic diary, the focus is on the whether Beijing will be announcing additional measures and the Japanese election on October 27. Chinese loan prime rates were cut by 25 bp today, the first cut since July, and a little more than expected. Still, given that other rates were cut in recent weeks, today's move seems like catching up rather than breaking new ground....
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The Shanghai - Shenzhen CSI 300 stock index was up 0.25% (+9.96) at 3,935.20 on Monday.