More QQE measures from BoJ likely on 30 October

Oct 05, 2015 05:57 am UTC| Commentary

The latest Q3 BoJ Tankan survey showed that the current business conditions DI for large manufacturers of Japan fell to 12 in Q3 from 15 in Q2. This is mainly because of weak exports to China and ASEAN economies despite a...

BoJ to support economic sentiment through policy

Oct 05, 2015 05:43 am UTC| Commentary

One last additional economic stimulus package would not cost that much politically or financially. However, if the government neglects to go ahead with this, there is a big risk that Japan would ultimately fail to escape...

No change at BoJ's upcoming meeting

Oct 05, 2015 05:35 am UTC| Commentary

The Bank of Japan (BoJ) is likely to make no changes to monetary policy at its meeting on 6-7 October. The BoJ is likely to maintain its commitment to raising the monetary base by 80trn on an annual basis until its 2%...

Market being too pessimistic in pricing US hiking cycle?

Oct 05, 2015 05:34 am UTC| Commentary

The market is pricing in very benign US hiking cycle, which looks to be too pessimistic.The market is now effectively pricing in the first hike to be around June 2016, with the fed funds rate rising only to 0.6% by YE 16...

US domestic data continues to look reasonable

Oct 05, 2015 05:29 am UTC| Commentary

In the US, economic data have taken a turn for the worse and financial conditions have tightened somewhat, despite the Feds decision to stand pat last month. The September payroll report was weak on almost all...

China’s FX reserves likely dropped to $3.5trn

Oct 05, 2015 05:27 am UTC| Commentary

Onshore CNY spot trading volume averaged around $23.3bn, i.e. lower than the record $31.4bn observed in August but still well above the levels seen before the currency regime change. Also, there have been signs of FX...

Germany's orders likely to bounce back in August

Oct 05, 2015 05:24 am UTC| Commentary

August should still be too early to see any major impact coming from the market turbulence surrounding China but also from the VW story which could have some impact on orders starting in September/October."Following the...