The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 30, 2023. REUTERS/Staff
Singles Day subdued
The Chinese consumer has so far refused to ride to the rescue of the world’s second-largest economy. Monthly retail sales data is due on Wednesday but the country’s Singles Day shopping extraganza over the weekend – equivalent to Black Friday sales elsewhere – recorded only meagre growth.
Looking across the region, Japan’s tech-heavy Nikkei managed to keep its head above water, buoyed by gains for its two biggest chip-related shares; Taiwan’s benchmark advanced 0.8%.
But Hong Kong flipped from early gains to a loss of about 0.15%. A sub-index of tech shares remained firmly positive but another of mainland property developers slumped more than 1%.
U.S. retail sales data is also due on Wednesday, preceded by CPI a day earlier. The figures could be key in helping the Federal Reserve to plot the path ahead for interest rates, including whether another hike is needed.
The Fed’s rhetoric has taken a hawkish turn recently, but markets so far are more focused on the data, particularly the soft non-farm payrolls numbers at the start of this month.
ECB President Christine Lagarde last week said that rates will stay restrictive at least for several quarters. Lagarde deputy Luis de Guindos has his say a little later today, giving the keynote speech to kick off Euro Finance Week.
Elswhere, Bank of England board member Catherine L. Mann will take the podium, after the bank’s chief economist, Huw Pill, said last week its projection that monetary policy will need to remain restrictive for an extended period should not be taken as a promise.
Key developments that could influence markets on Monday:
ECB’s de Guindos, BoE’s Mann speak
UK Rightmove house prices
Sweden SEB housing
New York Fed consumer expectations survey
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