Chinese export data boost Asian markets.
US stocks continued their winning streak on Monday with tech stocks leading the surge. Apple rose 6.35% while Microsoft was up 2.59% pushing the NASDAQ to a sharp 2.55% gain. The S&P and the DOW rose 1.64% and 0.87% respectively. Bond markets were closed for a holiday.
British unemployment for the 3 months to August rose to 4.5% even as furloughed employees resumed work according to a release by the Office for National Statistics; a year earlier unemployment was at 3.9%. Economists predict that the job losses will continue as the government reduces support for workers and fresh COVID-19 restrictions come into force as is now the case in Liverpool. The pound closed higher at $1.3064 while yield on 10Y UKTs closed lower at 0.271%.
Asian markets were flat to higher on Tuesday buoyed by positive data on Chinese exports. Chinese exports grew 9.9% YoY as the economy rebounds from the shutdown; the CSI rebounded from early lows to close 0.04% higher. The ASX rose 1.03% while the NIKKEI gained 0.18%; the HANG SENG was closed for trading due to a typhoon.
Turkey’s current account remained in deficit for a ninth straight month in August posting a $4.6 billion gap; the deficit stood at a revised $1.94 billion in July. Despite the general gloomy outlook with currency woes, industrial output continues to rise with the 10.4% YoY rise in August bettering the 8.4% figure for July. The lira closed weaker at 7.8957 to the dollar while TURKEY 30s were lower, trading in the mid 132s.
Brazil consumer inflation rose to an annual 3.14% in September with the 0064% gain for the month marking the quickest September pace on record. While the figure falls short of the 4% target, a benchmark rate of 2% has seen traders start pricing in possibility of monetary tightening as government spending may likely spike pushing inflation even higher. BRAZIL 30s were higher, trading in the mid 103s.
SSA traded flat to lower during Monday’s session with most activity happening earlier in the session in the absence of US liquidity. The space opened a touch higher today with KENINT, NGERIA and GABON about a quarter point up. Meanwhile Zambia has insisted that it will resist Chinese pressure to make good on arrears as a precondition to debt relief talks. Chinese creditors, who account for a third of foreign debt, have been a major impediment to ongoing talks as other creditors fear that debt relief in the absence of an agreement with the Chinese may see funds diverted to servicing Chinese debt.