China Inflation Rate at 3-Month High in September

News Event

From Trading Economics: Consumer prices in China rose 1.9 percent year-on-year in September of 2016, compared to a 1.3 percent rise in August while market expected a 1.6 percent increase. It was the highest inflation rate since June as the politically sensitive food prices increased by 3.2 percent while non-food cost rose at a slower 1.6 percent. The cost of consumer goods gained 1.7 percent and those of services advanced 2.4 percent. On a monthly basis, consumer prices rose 0.7 percent, after gaining 0.1 percent in a month earlier and above market consensus of a 0.3 percent growth. It was the highest figure since February. Inflation Rate in China averaged 5.44 percent from 1986 until 2016, reaching an all-time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999. Inflation Rate in China is reported by the National Bureau of Statistics of China.

Market Snap

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index edged up in choppy trade on Friday morning as index-heavyweight Fast Retailing Co's strong gains offset negative sentiment from Wall Street's weakness overnight. MSCI's broadest index of Asia-Pacific stocks outside Japan was up 0.4 percent after falling 1.1 percent on Thursday, when weak Chinese export numbers hit global equities, stopped a rise in U.S. yields and halted the dollar's advance. Japan's Nikkei added 0.5 percent. The broader Topix fell 0.1 percent to 1,340.9 and the JPX-Nikkei Index 400 was down 0.2 percent percent to 112980.32. South Korea's Kospi added 0.6 percent and Australian stocks were flat. Shanghai fell 0.5 percent while the Hang Seng rose 0.7 percent.

In Currency Markets the dollar rose on Friday, on track for a weekly gain though shy of this week's highs, as investors awaited U.S. retail sales data and remarks from Federal Reserve officials that could cement expectations of a U.S. interest rate hike this year. Against the yen, the dollar added 0.3 percent to 104.03, shy of its overnight high of 104.62 yen. The euro fell 0.3 percent to $1.1024, heading back toward its overnight low of $1.0982, its lowest level since late July. Sterling skidded 0.5 percent at $1.2197 and looked set for a loss of 1.9 percent in a volatile week in which it moved back towards the previous week's 31-year lows. The dollar index added 0.3 percent to 97.812.

In Commodities Markets oil prices edged up on Friday, pushed by a tighter U.S. fuel market and as technical indicators attracted buying from financial players. Following a fall in early trading, international Brent crude futures were trading at $52.08 per barrel, up 5 cents from their previous close. After falling below $50 a barrel on Thursday, U.S. West Texas Intermediate crude was trading at $50.63 per barrel, up 19 cents from the last close. The U.S. Energy Information Administration reported a fall of 3.7 million barrels for distillates late on Thursday, which include diesel and heating oil, and a 1.9-million barrel decline for gasoline.  Spot gold was down 0.1 percent at $1,256.50 an ounce.

In US Equity Markets stocks fell on Thursday led by falls in financial shares and following weak Chinese economic data but a late-day rebound in oil prices limited the day's decline. The Dow Jones industrial average was down 0.25 percent, to 18,098.94, the S&P 500 lost 0.31 percent, to 2,132.55 and the Nasdaq Composite fell 0.49 percent, to 5,213.33. Financials, which have been under pressure following negative news on Deutsche Bank and Wells Fargo, were down ahead of quarterly results due Friday from Wells Fargo, JPMorgan Chase and Citigroup. The S&P financial index fell 1.1 percent. Stocks pared losses late along with energy stocks. The S&P energy index ended down 0.7 percent.

In Bond Markets U.S. Treasury prices rose on Thursday as weak Chinese data pushed investors to buy safe-haven government debt after two straight days of selling.  The 10-year note rose 12/32 in price to yield 1.739 percent, down 4 basis points from late Wednesday to a nearly one-week low. The 30-year bond rose 22/32 in price to yield 2.476 percent, its lowest since Oct. 7. Fed fund futures prices show investors see a 65-percent chance the Fed will raise rates at least once this year, with traders overwhelmingly positioned for a December, rather than November, hike.

Source: Institute of Trading and Portfolio Management