ASIA: Soared despite early Hong Kong property jitters. China’s trade surplus was $16.9 billion in September, with export growth falling to 25% year-over-year. The surplus over the last three months has been the largest quarterly amount since the financial crisis according to Bloomberg.
The Hang Seng Property Index dropped 2-3% at one point after the government said that it would no longer provide automatic residency to foreign property buyers, but has staged a complete recovery and closed in the green.
A Bank of Japan governor has hinted that the central bank could expand its $61.1 billion inflate-asset-prices-at-all costs fund, the one which is slated to buy not just bonds, but ETFs (stocks), and real estate investment trusts. The yen isn’t scared, still sitting near year-to-date highs. Japanese machinery orders for August also came in higher than expected, but apparently due to one-off purchases.
EUROPE: Is rising. Germany’s top central banker has openly attacked the ECB’s strategy of buying the sovereign debt of nations such as Spain or Greece as a form of support for the credit markets. “I think that if a central bank signals it wants higher inflation, they usually get it. That’s a concern, not a reassurance,” he said in New York. Greece’s 10-year bond yield is now down to 9% vs. 12% just a few weeks back.
MACRO: Virtually everything is going up except for the U.S. dollar. Gold on the way to $1,360 again.
U.S. FUTURES: Are rising. Watch for the treasury budget at 2:00 PM ET and Ben Bernanke speaking around 4:00 PM. Key earnings: JP Morgan (JPM).