Germany Industrial Output Rises

News Event

From Trading Economics: Industrial production in Germany rose 0.3 percent month-on-month in October of 2016, following a downwardly revised 1.6 percent drop in September but much lower than market expectations a 0.8 percent rise. Output was mainly driven by construction (+1.7 percent) and manufacturing (+0.1 percent, with the production of capital goods and consumer goods growing by 0.5 percent and 0.1 percent, respectively) while energy production fell (-0.5 percent). Industrial Production Mom in Germany averaged 0.08 percent from 1991 until 2016, reaching an all time high of 4 percent in August of 1993 and a record low of -6.90 percent in January of 2009.

Market Opening Wrap

In Asian Equity Markets stocks edged up on Wednesday as investors covered short positions and looked to the upcoming policy meeting of the European Central Bank for comfort after a referendum defeat tipped Italy into political turmoil. MSCI's broadest index of Asia-Pacific stocks outside Japan rose 0.25 percent. The Nikkei gained 0.7 percent to 18,496.69 points. The broader Topix advanced 0.9 percent to 1,490.62 and the JPX-Nikkei Index 400 added 0.8 percent to 13,344.30. Australian stocks rose 0.7 percent despite data showing the economy contracted in the third quarter. The Shanghai composite however bucked the trend, down 0.05 percent, while Hong Kong's Hang Seng gained 0.3 percent.

In Currency Markets the euro and dollar were steady on Wednesday as traders paused for the outcome of Thursday's European Central Bank policy meeting, which may set the tone for currency markets after the sharp moves in the wake of last month's U.S. election. The euro was little changed at $1.0720 after falling 0.5 percent overnight. The dollar was steady at 114.069 yen after edging up about 0.2 percent overnight following a modest rise in U.S. bond yields. The Australian dollar was down 0.4 percent at $0.7428 and the New Zealand dollar was flat at $0.7117, drawing support from a falling Aussie. The Canadian dollar ended a three-day winning run to end lower overnight. It was down about 0.1 percent at C$1.3289 per dollar.

In Commodities Markets oil prices fell on Wednesday on persistent doubts whether a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over two years. International Brent crude futures were at $53.82 per barrel, down 0.2 percent, from their last close. U.S. WTI crude futures were down 0.33 percent, at 50.76 per barrel. Oil prices shot up as much as 19 percent after the OPEC and Russia last week announced they would jointly cut production next year in an attempt to prop up markets.Gold prices edged up in Asia on Tuesday on mild buying sentiment following sustained falls in the past month for the yellow metal. Gold futures rose 0.07 percent to $1,170.95 a troy ounce.

In US Equity Markets stocks rose on Tuesday as telecom stalwarts AT&T and Verizon gained and bank shares added to their torrid post-election rally, helping the Dow set another record closing high. The S&P 500 gained 0.34 percent, to 2,212.23 and the Nasdaq Composite added 0.45 percent, to 5,333.00. AT&T rose 1.9 percent. The company said its new streaming television service DirectTV Now has so far exceeded expectations. Verizon climbed 1.2 percent. The No. 1 U.S. wireless carrier is selling 29 data centers to Equinix for $3.6 billion. Nike fell 2.5 percent after Cowen & Co downgraded the shoe and apparel maker's shares to "market perform." The S&P financial sector rose nearly 1 percent, lifted by a 2.2 percent gain for Wells Fargo.

In Bond Markets benchmark Japanese government bonds firmed slightly on Wednesday, though superlong JGBs weakened as investors positioned for the next session's 30-year sale. The benchmark 10-year yield edged down 1 basis point (bp) to 0.035 percent. But the 20-year JGB yield added 1 basis points to 0.510 percent after earlier rising to 0.520 percent, its highest level since March. The 30-year JGB yield added 0.5 bp to 0.630 percent, while the 40-year JGB yield rose 1 bp to 0.740 percent.

Source: Institute of Trading and Porfolio Management