The deadly terror attack in Paris last Friday has made an impact on the financial market with Asian stocks declining as markets opened today. Treasuries, US Dollar and Gold rose as investors seek flight to safety. Analysts believe that this is a short term reaction and unlikely to have any longer term effect on yields.
AUSTRALIA UNEMPLOYMENT DATA UNBELIEVABLY STRONG
The unemployment data published in Australia last week surprised all market analysts with 58,600 jobs added in October on a seasonally adjusted basis. The unemployment rate fell as a consequence to 5.9% (from 6.2%) and the labour participation rate increased to 65% (from 64.9%). The market is treating the data with caution and the veracity of the data can be confirmed if consistent results are published in the coming months.
market round up
Intra-week volatility on Australian Dollar continued with the currency falling at the beginning of the week due to weak economic signals from China and falling commodity prices but gained ground on the back of the stronger than expected unemployment data. Lower commodity prices (Oil fell 8.5%) dragged the markets down with ASX 200 and S&P 500 falling by 3% during last week.
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Shanghai Composite Brent Oil (USD per BBL) Gold (USD per oz) Iron Ore (USD per tonne) | 13/11 2.00 2.24 2.95 2.27 0.7135 0.6611 87.48 4.5486 5051 2023 3581 43.61 1083.92 48.14 | 6/11 2.00 2.19 2.79 2.33 0.7144 0.6564 87.00 4.5370 5215 2099 3590 47.42 1089.80 48.21 |
YUAN'S INCLUSION AS A SDR CURRENCY IMMINENT
The International Monetary Fund has recommended the inclusion of the Yuan to be a SDR or Special Drawing Rights currency along with US Dollar, Euro, Pound Sterling and Japanese Yen. PBoC chief Zhao Xiaochuan is committed to making the Yuan a freely traded currency with market based interest rate system and a liquid foreign exchange market.
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