In new zealand and in germany. Before germans went to the polls, we did see what was going on with valuations in the benchmark dax. The dax is showing Equity Investors are not conflicted. The dax trades at about 13 times its expected profit. That is well below msci priced ratios. Ndexes overweight. Just half an hour to go before we get these art of the session start of the session in hong kong and shanghai. It is now 135. There has been guff of Interest Rates going up. We have been doing this for years. Once has oit faulted. Rashaad every time i go to england, my trip becomes more expensive. Entering the 4th quarter. High grade. F expect thos three to hike. Equity markets doing good. Japanesef the weaker yen, it is no longer here. A little into ems. Getting out of the bond markets, we are seeing yields of. Up. Percent. Is up 0. 4 starte seen a downpouturn to flow. Watch out. This is your 200 day moving average. There is your chart. 51 on our terminal. We could be talking about election
We had these purchasing managers indices out of china. Gauge, fiveyear highs the unofficial passion days,n manufacture slipping to 51. 6. The prithe deficit that has from the official one. We have some of these large firms distorting things. Large firms are feeling bullish. So. L firms less tailored toa move shore up the economy. Pboc announcing it will reduce the amount of cash the banks must hold in reserve. The economy where it has been scarce. Its not the only pmis we have had. The few places in asisa, asia, the markets are trading. Most closed for a public holiday. Pmi in japan. Haidi we had the pmi data from the nikkei business morning. We had japanese stocks building on gains. Boding well for corporate warnings in Japan Corporate earnings in japan. We we ending higher and sellingng for seleign for chinese stock g for ringgit stocks down. Is sliding except for the hong kong dollar. They could be under pressure given the retreat we are seeing in oil. Falling after setting the two
And, asiapacific trade ministers concerned about rising protectionism, but no mention of it in their postsummit statement in hanoi. The start of the brandnew asian trading week. It is all about oil. We are fast approaching that meeting in vienna. The markets have pretty much priced and that ninemonth extension. Latest over the weekend, we are hearing that saudi arabia saying all opec producers are up for this extension. Take a look at this chart in terms of where Price Expectations are going. That front month the vti with the nearest expiration contract, converging at 50, so whether the news has 10 baked in or there is further upside when it comes to that oil price, even if we get that extension, and the flip side of that story is where u. S. Shale production goes from here, because the biggest opecion has not been producer sticking to their end of the bargain as opposed to whether their efforts are being undermined by increasing levels of u. S. Production. We have seen u. S. Inventori
Bloomberg. As our u. S. S close, and u. K. Markets. A holiday thinned session in asia. Things are decidedly mixed. Of ave not seen much reaction to saber rattling from north korea with that ninth missile test. It is a big week in terms of news flow and data, china pmi, and waiting to see if that feeds into the picture of the growth or thathad from china is as good as were going to get your the second half could look dicey. We had an announcement from the pboc on friday saying they are considering looking at what they call a countercyclical adjustment factor. We are still trying to figure out what that means in terms of the daily yuan fixing. China has been fixing its dollaryuan fix at gradually weaker levels, adjusting from the previous days close. This istion is whether a dollar of fact. It tends to look different when youre looking at the yuan versus the basket of currencies, or is this something reading more into come it that we are seeing a continued weakness when it comes to the y
Wages are creeping up, but households still unwilling to spend. Yet more signs that the missing puzzle piece when it comes to the japanese recovery. Remainingics story elusive with this threshold out this morning. Laboroyment, the tight market staying at the lowest in around two decades. Also looking at things like retail sales and consumption lacking. Take a look at this chart. Consumers. Is this the case that so many years of deflationary mindset is shake . Ry difficult to the stubbornness of a reluctance to spend there is. Low unemployment employment. You can see when it comes to spending, living expenditure, it is not going up at all. We are going to delve a little bit more. There is no change to the picture that japans economic recovery lacks that strong driver despite expending for a fifth consecutive quarter. The longest run of gdp expansion in about a decade. Lets take a look at other markets. It is a funny start to the trading week. Large parts of Global Markets closed. The u.