Stocks had another poor session, the Dow Jones finished -1.29% and the S&P -0.78%. In Asia, the MSCI Asia Pacific Index fell more than 1%, set for its biggest weekly drop in three months. Chinese stocks in Hong Kong led the region’s losses as the Third Plenum failed to convince investors about the economy’s new growth impetus. The Third Plenum has proved to largely be a non-event despite President Xi Jinping vowed to make “high-quality development” the guiding force of the world’s No. 2 economy. But showing few initial signs that the top leadership is preparing to unleash major steps to boost demand or arrest the property slump - Iron Ore struggles to rally.
The $ had good session as 10-year yields rose four basis points to 4.20%, the currencies that were weakest include the SEK (-0.59%) then the Kiwi (-0.58%) and finally the Yen which was lost 0.44%, all eyes are on the intervention numbers. As for corporate news, Netflix had good results and added 8 million subscribers in the latest quarter, making its total subscriber count 277.7 million worldwide. Revenue grew 17% during the quarter, reaching $9.5bn. Samsung Electronics Co. has agreed to resume negotiations with the union organizing strikes across its chipmaking plants. Meanwhile, Citigroup Inc. expects foreign investors to deploy as much as $100 billion in India this fiscal year, drawn to high-tech manufacturing, infrastructure and climate-change projects.
As for other markets West Texas Intermediate crude fell 0.6% to $82.32 a barrel, Spot gold fell 0.7% to $2,427.36 an ounce, Bitcoin rose 0.6% to $64,207.7 and Ether rose 0.3% to $3,425.6. On the speaking front we hear from the Fed’s John Williams and Raphael Bostic speak. On the data front we have Canadian retail sales and European Current Account numbers.
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