Overseas Markets Lower, Dollar Gains Again

by: Hedge Fund Live

Morning Notes

- Overseas markets down w/ exception of Nikkei, which was solidly bid as the yen moved lower

- People’s Bank of China [PBOC] increased bank reserve requirements by 50bps, effective Monday

- China’s trade balance showed surplus- will stir more FX policy criticisms

- Gold down, silver down, dollar up again, treasuries down

- S&P futures down a bit, about 1 handle from FV ahead of jobless claims number, trading between S3/R3 pivot levels (on no pivot signal)

- Note as tomorrow is Veterans Day, we are receiving Initial Jobless Claims data a day early today

- Also on economic calendar for today is Import Price Index and Trade Balance at 8:30a (same time as claims data)

- 30-yr bond auction at 1p should be of more interest than usual given yesterday’s sharp sell off in treasuries

- Initial Jobless Claims: 435K vs. 450K; prior revised up to 459K from 457K

- Continuing Claims: 4.301M vs. 4.3M, prior was 4.387M

- Import Prices Ex Oil: +0.3%, prior +0.3%

- Trade Balance: -$44B vs. -$45B; August revised down to -$46.5B from -$46.3B

- Futures initially spiked on data, but has since dropped back to same level as prior to data release

- G20 summit begins tonight EST, tomorrow in S.Korea

Author's Disclosure: None