Foreign direct investment (FDI) outflows from China have exceeded inflows for the first time, largely due to tensions with the U.S. related to semiconductor technology and concerns about increased anti-spying activities. In the July-September quarter, FDI in China reached a negative $11.8 billion, reflecting more withdrawals and downsizing than new investments for factory construction and other purposes. This marks the first negative figure since 1998. Foreign investment had been slow, especially after a significant decline in the April-June quarter of 2022 during China’s zero-COVID lockdown in Shanghai. A survey in September also indicated that a significant portion of Japanese Chamber of Commerce and Industry members in China had no plans to invest in China in 2023 or planned to invest less than in 2022.
The major Asian stock markets had a green day today:
- NIKKEI 225 increased 758.59 points or 2.37% to 32,708.48
- Shanghai increased 27.61 points or 0.91% to 3,058.41
- Hang Seng increased 302.47 points or 1.71% to 17,996.59
- ASX 200 increased 19.20 points or 0.28% to 6,997.40
- Kospi increased 134.03 points or 5.66% to 2,502.37
- SENSEX increased 594.91 points or 0.92% to 64,958.69
- Nifty50 increased 181.15 points or 0.94% to 19,411.75
The major Asian currency markets had a mixed day today:
- AUDUSD decreased 0.00167 or -0.26% to 0.64953
- NZDUSD decreased 0.00224 or -0.37% to 0.59746
- USDJPY increased 0.471 or 0.32% to 149.841
- USDCNY decreased 0.00745 or -0.10% to 7.27985
The above data was collected around 13:56 EST.
- Gold decreased 8.46 USD/t oz. or -0.42% to 1,983.81
- Silver decreased 0.060 USD/t. oz or -0.26% to 23.140
The above data was collected around 13:59 EST.
Some economic news from last night:
au Jibun Bank Japan Services PMI (Oct) increased from 51.1 to 51.6
No economic news from today:
The Bank of England (BOE) will regulate “systemic stablecoins” that could potentially disrupt financial stability due to their wide circulation, while the Financial Conduct Authority (FCA) will oversee the broader cryptocurrency sector, as outlined in discussion papers published by both regulators. These proposals align with the U.K. government’s recent plans for regulating the cryptocurrency sector. The rise of Big Tech companies like Facebook (now Meta) and PayPal getting involved in stablecoin issuance, along with the collapse of Terraform Labs’ stablecoin empire last year, has prompted global efforts to regulate stablecoins. The U.K., aiming to be a global crypto hub, already included stablecoins in its payment regulation in June and is expected to introduce legislation for fiat-backed stablecoins early next year.
The major Europe stock markets had a mixed day today:
- CAC 40 decreased 33.77 points or -0.48% to 7,013.73
- FTSE 100 increased 0.03 points or 0.00% to 7,417.76
- DAX 30 decreased 53.28 points or -0.35% to 15.135.97
The major Europe currency markets had a mixed day today:
- EURUSD increased 0.00035 or 0.03% to 1.07325
- GBPUSD decreased 0.00087 or -0.07% to 1.23673
- USDCHF decreased 0.00074 or -0.08% to 0.89806
The above data was collected around 14:11 EST.
Some economic news from Europe today:
German Factory Orders (MoM) (Sep) decreased from 1.9% to 0.2%
HCOB Germany Services PMI (Oct) decreased from 50.3 to 48.2
HCOB Spain Services PMI (Oct) increased from 50.5 to 51.1
HCOB Italy Services PMI (Oct) decreased from 49.9 to 47.7
HCOB France Services PMI (Oct) increased from 44.4 to 45.2
S&P Global / CIPS UK Construction PMI (Oct) increased from 45.0 to 45.6
HCOB Eurozone Composite PMI (Oct) remain the same at 46.5
HCOB Eurozone Services PMI (Oct) remain the same at 47.8
Federal Reserve Governor Lisa Cook expressed her hope that the current target interest rate, which remains at a range of 5.25% to 5.5%, will be sufficient to bring inflation back to the Fed’s 2% target. The Fed chose not to change interest rates in its recent meeting. Cook stated that they aim for the current rate to be restrictive enough to eventually reach the 2% inflation target but emphasized the need for continued vigilance to ensure this goal is achieved.
In October, Canadian economic activity showed a slightly faster expansion, with the Ivey Purchasing Managers Index (PMI) rising to 53.4 from 53.1 in September. This marked the third consecutive month that the index exceeded the 50-point threshold, indicating sector expansion after dropping below it in July. The Ivey PMI measures monthly economic activity variations through input from purchasing managers across Canada. However, the employment gauge decreased to 54.7 from 58.5 in September, and the prices index hit its lowest level in six months, dropping to 60.0 from 67.3, reflecting a decline in prices.
US Market Closings:
- Dow advanced 34.54 points or 0.10% to 34095.86
- S&P 500 advanced 7.64 points or 0.18% to 4,365.98
- Nasdaq advanced 40.50 points or 0.30% to 13,518.78
- Russell 2000 decreased 22.77 points or 1.29% to 1,737.94.
Canada Market Closings:
- TSX Composite decreased 80.91 points or 0.41% to 19,743.94.
- TSX 60 decreased 4.08 points or 0.34% to 1,186.86
Brazil Market Closing:
- Bovespa advanced 338.51 points or 0.29% to 118,498.48
The oil markets had a mixed day today:
- Crude Oil increased 1.436 USD/BBL or 1.78% to 81.946
- Brent increased 0.991 USD/BBL or 1.17% to 85.880
- Natural gas decreased 0.2546 USD/MMBtu or -7.24% to 3.2604
- Gasoline increased 0.0511 USD/GAL or 2.32% to 2.2521
- Heating oil increased 0.0433 USD/GAL or 1.48% to 2.9671
The above data was collected around 14:14 EST.
- Top commodity gainers: Gasoline (2.32%), Crude Oil (1.78%), HRC Steel (4.76%) and Lumber (2.14%)
- Top commodity losers: Palladium (-1.33%), Live Cattle (-1.48%), Platinum (-2.48%) and Natural Gas (-7.24%)
The above data was collected around 14:24 EST.
Japan 0.884% (-3.2bp), US 2’s 4.90% (+0.071%), US 10’s 4.6472% (+8.92bps); US 30’s 4.82% (+0.072%), Bunds 2.744% (+10.7bp), France 3.345% (+11.2bp), Italy 4.584% (+13.7bp), Turkey 26.84% (+18bp), Greece 4.051% (+8.4bp), Portugal 3.427% (+11.8bp); Spain 3.808% (+12.8bp) and UK Gilts 4.381% (+8.9bp)
The above data was collected around 14:26 EST.