Is the Euro the star of the day!? European economic indicators are being released one after another! ~Highlights for October 30~

Today’s Highlights

1)European stocks and European indicators

Yesterday in Germany, Chancellor Merkel announced she would step down as party leader and also retire from the chancellorship in 2020. Reactions in Germany and Europe appear to be favorable. A new right-leaning president has been elected in Brazil. In a world where right-leaning, national-first leaders are increasing, Merkel’s remaining as Germany’s chancellor carries significant meaning. She resigned as party leader while continuing as prime minister, and will groom a successor to take over the leadership later. The resignation announcement, considering the successor, may have boosted public support and favorable sentiment.

Also today, many European economic indicators will be released. None of the individual indicators are likely to move drastically, but continued weak results would be negative for the euro. The HICP is a price index. Focus on prices and economic indicators, specifically HICP and GDP.

Euro-sell mindset! ~Euro Strategy for the week of October 29

2)Australian economic indicators

Today and tomorrow, Australia will release economic indicators as well. The CPI tomorrow is particularly noteworthy. As noted in the weekly outlook, the Australian dollar has few positive catalysts and many negative factors. However, given the currency’s price near lows, there is limited room for further decline. It will be important to see whether indicators push to new lows or provide a rebound that lifts the currency.

Australian dollar-selling mindset! ~Australian dollar strategy for the week of October 29

3)Trump remarks and the Dollar Index

With the midterm elections approaching, Trump’s rhetoric and fiery statements are increasing. Recent comments on automobile tariffs toward Japan and critiques of the Fed’s rate hikes have emerged. The focus now is on the Dollar Index, which is at high levels. A high level implies a stronger dollar, and it wouldn’t be surprising to see restraint or remarks supporting a strong dollar.

Dollar Index — Weekly chart

4)Global stock prices and risk-off environment

European stocks rebounded yesterday, but Japan, US, and Chinese stock prices ended lower. In particular, the Dow’s late-day decline was severe. With US equities closing lower, Japanese stocks are likely to start negative. We will monitor for risks such as global stock declines, Saudi issues, European crises, and US-Chinese tensions worsening.

Today’s Event Schedule

10/30 (Tuesday)

09:30 AUD Building Permits
11:10 AUDBlock RBA Assistant Governor speaks
15:30 EUR France GDP
17:00 EUR Spain CPI (Consumer Price Index)
18:00 EURItaly GDP
19:00 EUREuro zone GDP and Consumer Confidence
22:00 EUR Germany HICP (Consumer Price Index)
23:00 USD U.S. Consumer Confidence
23:00 MXN Mexico GDP

10/31 (Wednesday)

06:45 NZD Building Permits
09:01 GBP GfK Consumer Confidence
09:30 AUDCPI (Consumer Price Index)
10:00 CNY China Manufacturing PMI

◎ Recording Room

Yesterday’s stock prices, interest rates, and remarks by key figures are recorded below.

Recording Room for October 29 — Interest rates, stock prices, and remarks by key figures