China Services PMI Growth at 4-Month High

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From Trading Economics: The Caixin China Services PMI rose to 52.4 in October of 2016 from 52.0 in September. It was the fastest growth since June but slightly below market consensus of 52.5. While business expectations were more positive than a month earlier, new orders increased the most since June. Employment also went up for the second straight month and the fastest pace since January. Meanwhile, backlogs of work increased slightly, ending a four-month sequence of marginal contraction. Input prices rose at a moderate pace across services companies. Prices charged were little-changed from the previous month, with some companies mentioning that increased competitive pressures had limited their pricing power. "It may be possible to sustain this stable condition throughout the fourth quarter, but it’s important that supportive policies are not relaxed because the economy still lacks sufficient growth momentum, " said Dr. Zhengsheng Zhong, director of Macroeconomic Analysis at CEBM Group

Market Snap

Market Opening Wrap

In Asian Equity Markets stocks joined the U.S. dollar on the defensive on Thursday as the nail-biting U.S. presidential race saw the S&P 500 suffer its longest losing streak in five years as investors sailed to safer harbours. Most regional markets steadied after a brief wobble and MSCI's broadest index of Asia-Pacific stocks outside Japan was flat by midday. Shanghai  added 0.5 percent. Tokyo was off on holiday, which was likely just as well as the Nikkei would have been hurt by the rising yen. The Australian index, S&P/ASX 200, fell 0.06 percent.

In Currency Markets the dollar's losses deepened on Thursday as positioning for next week's U.S. presidential election overshadowed the Federal Reserve's latest review, where policymakers signalled they were on track to hike rates next month. It was last down 0.7 percent at 102.57 yen, wallowing at its lowest levels since Oct. 4 and well off its Oct. 28 high of 105.53. The euro was up 0.2 percent $1.1116 after rising 0.6 as high as $1.1125, its loftiest peak since Oct. 11. The dollar fell 0.3 percent against the Swiss franc to 0.9696 franc. The Australian dollar was nearly flat against its U.S. counterpart at $0.7656. The Mexican currency retreated to as low as 19.5172 pesos per dollar. The dollar index fell 0.3 percent to 97.089.

In Commodities Markets crude oil futures rose on Thursday as an attack on a Nigerian oil pipeline and a weaker U.S. dollar buoyed sentiment in the market, lifting prices from five-week lows. Brent crude was trading up 1.1 percent, at $47.37 a barrel. U.S. crude was up 0.9 percent, at $45.73 per barrel. Gold rose on Thursday as uncertainty over the outcome of the U.S. election upheld the safe-haven demand for bullion and weakened the dollar, offsetting signals from the Fed that it could hike interest rates next month. Spot gold rose 0.5 percent to $1,303.42 an ounce. Among other precious metals, silver was up 0.8 percent at $18.57 an ounce. Platinum rose 0.5 percent to $993.80 and palladium was firm at $629.10.

In US Equity Markets   the S&P 500 ended lower on Wednesday for a seventh straight session, its longest such streak in five years, as the Fed signalled it could hike interest rates in December and the uncertain U.S. election continued to cloud the market's outlook. The Dow Jones industrial average fell 0.43 percent, to 17,959.64, the S&P 500 lost 0.65 percent, to 2,097.94 and the Nasdaq Composite fell 0.93 percent, to 5,105.57.  The biggest sector decliners were utilities, real estate and telecommunications companies, which are high dividend-paying groups thought to be vulnerable in rising rate environments. In earnings news, Allergan shares fell 5.2 percent after the drugmaker's disappointing results.

In Bond Markets U.S. Treasury yields fell to their lowest in a week on Wednesday as uncertainty ahead of next week's U.S. presidential election enhanced the appeal of safe-haven bonds, and the Federal Reserve did not commit to an imminent interest rate hike. Benchmark 10-year notes ended up 7/32 in price to yield 1.80 percent, down from 1.82 percent late Tuesday. A report from payrolls processor ADP on Wednesday showed U.S. private employers added 147,000 jobs in October, below economists' expectations.

Source: Institute of Trading and Portfolio Management