China Trade Surplus Narrows in Oct

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From Trading Economics: China reported a USD 49.06 billion trade surplus in October of 2016, compared to a USD 61.26 billion surplus a year earlier. The figure came below market consensus of a USD 51.7 billion surplus, as exports fell much more than imports. In October, sales declined 7.3 percent from a year earlier, following a 10.0 percent drop in the preceding month while market estimated a 6.0 percent fall. Imports decreased by 1.4 percent, compared to a 1.9 percent fall in September and expectations of a 1.0 percent decline. In yuan-denominated terms, exports fell 3.2 percent from a year ago, the second straight month of contraction, and inbound shipments went up 3.2 percent.

Market Snap

Market Opening Wrap

In Asian Equity Markets stocks rose on Tuesday as world markets braced for the outcome of one of the most contentious U.S. presidential elections in history, with most investors cautiously optimistic of a win by Democrat Hillary Clinton. MSCI's broadest index of Asia-Pacific stocks outside Japan was up 0.4 percent. The Nikkei ended 0.03 percent lower at 17,171.38 points after flirting with positive territory briefly.  In Hong Kong, the Hang Seng index ticked up 0.3 percent. China's CSI 300 index index added 0.4 percent, with relief over improving prospects of a Clinton win offsetting bigger-than-expected declines in both imports and exports and a smaller-than-forecast trade balance in October.

In Currency Markets the dollar steadied in Asia on Tuesday, keeping previous session gains as markets wagered on a victory for Hillary Clinton in the U.S. presidential election after the FBI cleared her of any wrongdoing in its latest probe of her use of a private email server. The greenback was steady against the perceived safe-haven yen at 104.44, well above a one-month low of 102.54 yen plumbed on Thursday. The euro was also steady against the dollar at $1.1040, well shy of its Friday peak of $1.1143, which was its highest since Oct. 11. The Australian dollar gave back some of its overnight gains after rising 0.7 percent on Monday, its biggest daily percentage gain since Oct. 19. It was last down 0.4 percent at $0.7699.

In Commodities Markets oil prices were stable on Tuesday as financial investors and traders were cautiously positioning themselves for a win by Hillary Clinton in the U.S. presidential elections. U.S. West Texas Intermediate crude futures were at $44.97, virtually flat from their previous settlement. The contract gained nearly 1.9 percent the previous session. International Brent crude prices were up 8 cents at $46.23 per barrel. Spot gold was up 0.06 percent at $1,282.15 an ounce. The metal touched a low of $1277.70 on Monday. Silver edged higher by 0.3 percent at $18.26 an ounce while platinum was down 0.23 percent at $998.00. Palladium fell nearly 1.0 percent at $645.90 an ounce after hitting $656.90 in its previous session.

In US Equity Markets stocks rose on the eve of the U.S. presidential election, with Democratic nominee Hillary Clinton's prospects brightening after the FBI said it would not press criminal charges against her over the use of a private email server. The Dow Jones industrial average jumped 2.08 percent to end at 18,259.67 points and the S&P 500 rose 2.22 percent to 2,131.52. The Nasdaq Composite added 2.37 percent to 5,166.17. The financial sector's 2.6 percent rise led the gainers among the 11 S&P sectors. Biogen  jumped 6.72 percent after the drugmaker and Ionis Pharmaceuticals announced positive interim trial data. Ionis shares rose 18.39 percent. The CBOE Volatility index was down 17 percent, its biggest one-day fall since June 28

In Bond Markets Japanese government bond prices turned higher on Tuesday as the market took heart from firm investor demand at a 10-year debt auction. The 10-year JGB yield was down a basis point at minus 0.065 percent after edging up to minus 0.050 percent earlier in response to an overnight fall in the price of U.S. Treasuries. Long-term JGBs have attracted steady demand from bond investors after the Bank of Japan launched a yield curve control scheme in September.

Source: Institute of Trading and Portfolio Management