Global Markets Daily

21 Oct 2015, Wednesday

GBL: Global Markets Daily		Saktiandi Supaat (65) 6320 1379 saktiandi@maybank.com.sg	Fiona Lim (65) 6320 1374 fionalim@maybank.com.sg
FX Research: G7 Forex | AxJ Forex | Malaysia Rates | Singapore Rates | Indonesia Rates
Overnight session had mixed corporate earnings report and Wall Street ended the session in modest red. US economic data was decent with 1206K housing starts in Sep, better than expected. Fed Powell spoke of how swings in the treasury market such as that on 15 Oct can affect investor confidence. Earlier in the day, Canada had a change of PM. Justin Trudeau’s Liberals won the elections and he will announce the new cabinet on 4 Nov. CAD strengthened below the 1.30-figure against the USD. Elsewhere, NZD was testing the 0.6850 ahead of Fonterra’s dairy auction before slipping to levels around 0.6760. Dairy prices slid marginally by 3.1% at the auction despite lower milk supply this year. Oil prices slipped this morning as markets expect the US Department of Energy to report an increase in supplies. This morning, Japan trade balance remained in deficit with a print of –JY114.5bn. Exports eased to 0.6%y/y, accompanied by a fall in imports of -11.1%. There is no other first tier data to watch in Asia. Onshore markets are away in Hong Kong. Fed Powell moderates pane on market liquidity in New York tonight. At the moment, risk sentiments seem to favour Asian currencies, with the exception of the MYR, which was down -0.3%. §