The CSI is up 2.8% as investors digest China's Q3 GDP figures, growing +4.6% y/y. I am not as positive; this is a slowdown from 4.7% in Q2 and 5.3% in Q1, marking the slowest growth in more than a year. The PBOC has remarked it is focusing on “cutting the cost of financing for the real economy so that it can help corporates and households start leveraging again.” Expectations are that the economy will pick up speed gradually, and the government will probably inject more money into big projects to accelerate investment over the rest of the year. One idea is that an expanded “white list” may revive some private-sector housing projects.
Domestically, UK retail sales (excl. auto fuel) were strong, rising +0.3% m/m and +4.0% y/y in September. Cable is back above 1.3000. Looking at the details, computers and telecommunications retailers grew strongly but were partly offset by decreases in supermarkets.
In other markets, Bitcoin rose 1.4% to $67,850.85, Ether rose 1.4% to $2,634.13, the yield on 10-year Treasuries sits at 4.09%, and Australia’s 10-year yield advanced six basis points to 4.31% as the RBA is starting to look like a central bank outlier. West Texas Intermediate crude rose 0.4% to $70.95 a barrel, and spot gold rose 0.5% to $2,706.14 an ounce.
As for the day ahead, we have Eurozone Current Account data, U.S. housing starts, and Building Permits. On the speaking front, we’ll hear from the Fed’s Christopher Waller, Neel Kashkari, and Raphael Bostic.
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