· Dollar stabilises, euro near four-week low after ECB's announcement
The dollar paused its climb on Friday, while the euro wallowed near its four-week low against the greenback after the European Central Bank signalled further monetary easing by the end of the year.
Overnight, the euro’s decline in addition to U.S. data helped lift the greenback to a near four-week high against a basket of currencies.
The dollar index was flat at 93.889 =USD but sat within reach of Thursday's four-week high at 93.916, poised to mark the biggest weekly gains since the end of September.
Still, uncertainty surrounding Tuesday’s U.S. presidential election and coronavirus fears continue to loom over market.
The euro slightly firmed to $1.1679 EUR=EBS in Asia, after hitting a four-week low of $1.1650 in U.S. trade overnight.
Daisuke Karakama, chief market economist at Mizuho Bank, said that a build-up of expectations for ECB’s monetary easing may cause risks such as a dollar-buying spree or the euro to fall further.
“It’d be fine if the ECB can exceed market expectation... but now that they’ve made an announcement in advance, there’s a risk if (the December meeting) turns out to be underwhelming,” Karakama said.
· Moderna says it’s preparing global launch of Covid vaccine as it takes in $1.1 billion in deposits
Moderna is prepping for the global launch of its potential coronavirus vaccine, already taking in $1.1 billion in deposits from governments awaiting the potentially lifesaving drug, the biotech firm said Thursday in its third-quarter earnings report.
· China to increase incomes, expand middle class in 2021-2025- state planner official
China will increase the incomes of low-income groups and expand middle class over the 2021-2025 period, Ning Jizhe, the vice head of the National Development and Reform Commission, said at a news conference in Beijing on Friday.
China aims to let consumption play a basic role in supporting economic growth, said Ning. At the same conference, Han Wenxiu, a senior Communist Party official, said China will expand market access for foreign investors.
· China’s Huawei smartphone shipments plunge as U.S. sanctions continue to bite
Shipments of Huawei phones plunged in the third quarter as U.S. sanctions continue to hurt the Chinese technology giant, while domestic rival Xiaomi managed to capitalize on it, new data shows.
In the three months to the end of September, Huawei shipped 51.7 million smartphones, down 23% year-on-year, according to a Canalys report published Thursday.
Another firm, Counterpoint Research, said on Thursday that Huawei shipped 50.9 million smartphones, down 24% versus the same period last year. The Chinese firm’s market share dipped to 14% from 18% in the third quarter of 2019, according to Counterpoint.
Overall in the third quarter, worldwide smartphone shipments reached 348 million units, a 1% decline year-on-year, but a 22% rise from the second quarter, the Canalys report showed.
· Japan's factory output rises for fourth month on jump in car, machinery production
Japan’s industrial output rose for the fourth straight month in September as the world’s third-largest economy continued to shake off the drag from the COVID-19 crisis largely thanks to improving external demand.
Separate data showed the September jobless rate held steady, while the number of available jobs per applicant fell to the lowest level since late 2013.
Official data released on Friday showed factory output surged 4.0% in September from the previous month, mainly due to strength in car and production machinery manufacturing.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect output to rise 4.5% in October and 1.2% in November.
· Japan lowers travel advisories for Thailand, other countries
Japan lowered travel advisories issued for eight countries on Friday, including Thailand, plus Taiwan, as the pace of new coronavirus infections is slowing, Foreign Minister Toshimitsu Motegi said.
Japan lowered travel alerts for infectious diseases for Australia, South Korea, Singapore, Thailand, Taiwan, China, New Zealand, Brunei and Vietnam to Level 2 on its scale of four, requesting citizens avoid nonessential trips.
· Singapore to allow travellers from China, Australia's Victoria from Nov 6; no quarantine if Covid-19 test negative
All travellers from China and the state of Victoria in Australia will be able to enter Singapore and not be quarantined from next Friday (Nov 6), if they pass a Covid-19 test on arrival.
Singapore’s move to unilaterally open its borders to these two places means tourists and travellers flying in can go about their business without serving a stay-home notice if their PCR (polymerase chain reaction) test is negative.
The same applies to Singapore citizens, permanent residents and long-term pass holders returning from these two areas.
· Australian banks complain they have too much money, more may be on the way
Australia’s banking system has more money than it can use, a challenge that will likely grow next week with the central bank widely expected to trim interest rates to near zero and boost the amount of bonds it buys.
With the country trying to emerge from a COVID-induced recession, fiscal and monetary authorities have pumped billions of dollars in cash into the economy, cut interest rates to a record low and introduced a wage subsidy scheme.
Further measures to spur credit demand are on the cards, including scrapping “responsible lending” laws, and on Tuesday the Reserve Bank of Australia is expected to cut its cash rate to just 0.1% and increase its bond buying.
But bankers say they don’t need all that money.
“Money is essentially free today. Making it more free doesn’t really change anything,” said Elliott, after announcing a 40% slump in profits.
“It actually becomes a bit of a problem because it ... becomes a drag to our margins.”
Bankers say another rate cut and extra cash from the RBA are unlikely to spur credit demand.
· Coronavirus, consolidation taking toll on energy jobs
Oil and gas companies worldwide are taking an axe to their employment rolls, shedding workers to survive what is expected to be a prolonged stretch of weak demand.
Exxon Mobil Corp XOM.N said it will cut its workforce by 15%, or about 14,000 people, along with oil majors Chevron Corp CVX.N and Royal Dutch Shell Plc RDSa.L.
All told, more than 400,000 oil and gas sector jobs have been cut this year, according to Rystad Energy, with about half of those in the United States, where several big exploration companies and most large oil service companies are headquartered.
Coronavirus has devastated swathes of the global economy, with energy, travel and hospitality among the industries hit hardest. Energy companies were already struggling with weak returns, particularly those operating in U.S. shale regions, but have had to double down on cost cuts as investors pressure companies to improve margins.
· Oil losses deepen, set for second monthly fall as virus spread
Global oil prices fell more than 1% on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID-19 cases in Europe and the United States could hurt fuel consumption.
Brent crude slipped for a third day and was down 51 cents, 1.4%, at $37.14 a barrel by 0628 GMT after touching a five-month low in the previous session. December Brent contract expires on Friday.
U.S. West Texas Intermediate (WTI) crude declined 48 cents, or 1.3%, to $35.69 a barrel after dipping to its lowest since June on Thursday.
Reference: Reuters, CNBC
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