News Headline Summary

ASIA-PACIFIC MID-SESSION UPDATE - 14/11/12

A slightly positive theme has breezed through the markets today with most Asian equity indices in minor positive territory. The outperformer being the Heng Seng with one of the leading stocks being China Construction bank who have said that the level of their bad loans is controllable; as such the financials are the leading sector in the index.

In the FX market focus has been on AUD after some mixed data; firstly we had positive consumer confidence data which saw AUD/USD eventually move to session highs at 1.0457 but this move was not sustained due the release of negative wage growth data for Q3. Consequently seeing AUD/USD come off its highs with market participants now pricing in an increased chance of a December 4th rate cut by the Australian central bank which is against the current expectations among surveyed economists for a hold at 3.25%.

Elsewhere, for the eight consecutive day CNY has hit its 1% trading band limit as the Chinese currency continues to strengthen; hitting a 19 year high against USD. Do note that we have the formal end of the Chinese Communist Party Congress with the announcement of the new politiburo standing committee to happen tomorrow; the standing committee will be the main controllers of power in the country. Participants keenly await this announcement as it will set the tone with a reform minded line up being supportive for Chinese markets.

Looking forward we have some inflation data from India; whole sale prices for the month of October at 0630GMT/0230CST but beware the Indian markets are closed today for Diwali.

13 Nov 2012 - 22:17 - Equities Data - Source: RANsquawk

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