Will the risk-on continue!? ~ Highlights and schedule for November 5 ~
◎ Today’s Highlights
1) U.S. Midterm Elections on the Horizon
With the midterm elections tomorrow, final push is underway. Naturally, all eyes are on President Trump’s remarks. Last weekend, it seemed that responding to the Caravan would boost approval ratings more than U.S.-China relations, so 15,000 U.S. troops were stationed at the border. Regarding the U.S.-China cold war and trade, there was a sudden softening of stance. The market appears to have interpreted this as a retreat from risk. Today as well, attention is on President Trump’s comments and actions.
Before the U.S. Midterms! A Summary of the Midterm Elections
2)Brexit Negotiations
Over the weekend, The Times reported that Prime Minister May secured concessions from the EU on Brexit negotiations. It is expected that on Tuesday she will seek understanding from British MPs, and the pound has opened with a gap up.
Wellington Market
GBP/JPY “147.48~147.65”
GBP/USD “1.3036~1.3048”
With this report, we will be watching to see if there are any denials or corrective reports. Also, details and reactions from British MPs and EU member states are in focus.
More details will be summarized separately.
3)U.S.-China Relations and Risk-On
Over the weekend, President Trump’s remarks suggested a positive stance on the U.S.-China cold war and trade war. Trump stated that the United States would reach an agreement with China on trade, following a telephone call with China. The market took this as a sign of improvement in U.S.-China relations and shifted to risk-on. Asian and Oceanian currencies were bought heavily. Will this trend continue, or will there be denial or additional statements? We will monitor.
◎ Today’s Event Schedule
11/5 (Mon)
U.S. second round of sanctions on Iran (oil embargo) to be launched in the daytime Japan time
08:50 JPY Bank of Japan Monetary Policy Meeting Minutes
10:00 JPY Kuroda Bank of Japan Governor Remarks
10:45 CNY Caixin Services PMI
16:00 TRY Turkish CPI (Consumer Price Index)
18:30 GBP Services PMI
21:45 EUR Deggendorf ECB Vice President Speech
23:45 USD Services and Composite PMI
11/6 (Tue)
00:00 USD ISM Non-Manufacturing PMI
◎ Records Room
We record weekend stock prices, long-term interest rates, and speeches by key figures.
Records Room on November 2 — Stocks, Rates, and Key Speeches
◎ Weekly Schedule and Highlights
