Dollar Soft as Senate Released Tax Plan, Stocks Down But Not Out The US markets responded negatively overnight as Senate's version of tax plan confirmed they wanted to delay corporate tax cut by a year. But considering intraday price actions, the reactions were not disastrous. DOW dropped initially to 23310.02 before paring much losses to close at 23461.91, down -101.42 pts or -0.43%. That's close to open at 23492.09. S&P 500 dropped as low as 2566.33 before closing at 2584.62, down -9.76 pts or -0.38%. That's even slightly higher than open at 2584.00. NASDAQ dropped to as low as 6687.28 then closed at 6750.05, down -39.07 pts or -0.58%. That's notably higher than open at 6737.45. After all, US equities has now entered into a consolidation phase after recent record runs. 10 year yield tried to recovery and ended up 0.006 at 2.331. Dollar, on the other hand, stays pressured and is set to end as the weakest one for the week.
Senate tax plan confirms ..Read More →

China to remove foreign ownership limit in Chinese banks Reuters reports comments from the Chinese Vice Finance Minister delivered last minutes, with the key headlines noted below.
China will lift the ceiling on foreign equity ownership in each securities, fund, and futures joint ventures to 51%.
China to remove foreign ownership limit in Chinese banks.Read More →

USD: Gains have stalled with jittery global investors – AmpGFX The USD has strengthened since September after trending down for the first eight months of the year, but its gains have stalled in recent weeks, and the jury is out as to whether it will revert to its weaker trend earlier in the year or push on, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.
Key Quotes
“The rebound in the USD since September has some sound fundamentals; strengthening US economic reports, Fed sticking to its guns, and tax policy reform progress. However, the market is not convinced; US bond yields tried to go up, then slipped back. Equity investors have not yet been overly perturbed by the USD rebound, continuing to drive up global equities.”
“Emerging market currencies have been caught somewhere between following stronger EM equities higher, or falling back against a firmer USD. In the first eight months of the year, the dollar smile theory was playing out with moderate US economic gr..Read More →

RBA throttles back their inflation view as US Congress brainstorms on tax – Westpac Elliot Clarke, Research Analyst at Westpac, explains ha this week began with their understanding of Australia’s inflation story being ‘revised’ and ended with the RBA making a significant adjustment to their forecasts.
Key Quotes
“In between, we saw progress on tax reform in the US; although on this front, developments to date are best regarded as a work in progress.”
“Firstly on the CPI, we have released a number of pieces this week that have detailed both the quantitative and qualitative effect of the ABS’ reweighting of the CPI basket. The take home point is that, incorporating the changed weights, we struggle to see a peak in headline inflation any higher than 2.0%yr for the foreseeable future. Key to this outlook is ongoing competition amongst retailers as well as the impact greater housing supply is having on rents.”
“The other big event in Australia this week was the RBA’s November meeting an..Read More →

Forex Today: USD consolidates losses in Asia, UK industrial data in focus The Asian traders had little to cheer as quiet trading persisting across the fx board, as markets digested the latest political developments from the UK, US, and Australia. Meanwhile, the Aussie traded modestly flat below 0.77 handle on the back of RBA’s SoMP and risk-off market profile. The Japanese yen also remained better bid against its American counterpart, as the US dollar stalled its recovery mode and consolidated yesterday’s sharp-sell-off. Among other related markets, the Asian stocks were dragged lower by the Japanese indices, while gold and oil prices traded on the back foot.
Main topics in Asia
Fed's Williams sees further rate rises
Comments from Fed's John Williams crossing the wires via BBC.
RBA's (SOMP): trims inflation forecasts, underlying inflation not expected to reach 2 pct until early 2019
In today's Reserve Bank of Australia's quarterly Statement on Monetary Pol..Read More →

Japan's tertiary activity index decreased for the second straight month in September, and at a faster-than-expected rate, data published by the Ministry of Economy, Trade and Industry showed Friday.
The tertiary activity index dropped 0.2 percent month-over-month in September, following a 0.1 percent decrease in August. Economists had expected a 0.1 percent stable rate of fall for the month.
Among the individual components of the survey, activity was down for wholesale trade, medical, health care and welfare, information and communications, electricity, gas, heat supply and water, business related services and goods rental and leasing.
At the same time, activity was up for finance and insurance, real estate, transport and postal activities, retail trade and living and amusement-related services.
On a yearly basis, the tertiary activity index climbed at a steady pace of 0.6 percent in September.Read More →