RUSSIA: Foreign Minister Continues Visit to North Korea
Oct-19 07:28
- Chinese President Xi Jinping reiterated that China supports Moscow’s efforts in safeguarding its national sovereignty, security and development interests, while seeking a breakthrough on a Sino-Russian gas pipeline, Bloomberg report. Deepening ties between China and Russia is not an expedient but a long-term solution, Xi told his counterpart Putin during a meeting Wednesday according to a statement from the Chinese government.
- Moscow-Pyongyang contacts at various levels, including the top and high levels, will continue, Interfax report Russian Foreign Minister Lavrov as saying in Pyongyang Thursday.
- The government has taken another step towards launching a program to attract long money from citizens, Kommersant report. They write that a bill has been submitted to the State Duma to expand the mechanism of tax deductions from income tax for voluntary pension and long-term savings of citizens.
- Prime Minister Mishustin will speak at an exporters’ event today while Foreign Minister Lavrov continues his visit to North Korea. The Bank of Russia will report weekly changes in its gold and FX reserves at 1400BST/1600 local time.
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SCANDIS: Riksbank Preview - Sep 2023: 25bp Hike Against A Weak Backdrop
Sep-19 07:25
The Riksbank are expected to hike 25bps on Thursday, with their signalling for the policy path going forwards the key question this meeting.
- Headline and underlying inflation have fallen over the summer, though the August CPIF ex-energy reading still came in above the Riksbank forecast and remains far above the 2% target.
- The continued depreciation of the SEK is of significant concern to the Executive Board. While direct intervention is not expected, there is potential for the Riksbank to announce the hedging of its FX reserves this meeting.
- The economic backdrop in Sweden has continued to show signs of weakness and we expect the Riksbank to acknowledge this fact, while keeping the door open for a November hike to keep the SEK supported.
GILTS: Looking Elsewhere For Cues Early On, Supply Due
Sep-19 07:24
Gilt futures briefly tick lower at the open, with U.S. & German peers operating a touch below levels seen at yesterday’s gilt futures close, before a before a light bid comes in across core global FI markets.
- That leaves futures +25 after yesterday’s post-settlement uptick, while cash benchmarks run 0.5-1.5bp richer.
- SONIA futures are flat to +2.5 through the blues, given the uptick from lows in bond futures.
- BoE-dated OIS shows ~22bp of tightening for Thursday’s MPC decision, while terminal policy rate pricing continues to hover around 5.65%.
- The latest BCC survey revealed that 46% of the firms surveyed noted that BoE rate rises to date are negatively impacting their business, while 45% said that they were not directly impacted.
- ’53 gilt supply headlines domestically today.
EUR: CAD and NOK extends gains
Sep-19 07:22
- NOK Cad are extending gains against the EUR and the USD helped by elevated Oil prices of late.
- The EUR is also seeing broader offers, nothing big or fast, 1 pip at a time, testing its intraday low against the USD.
- The EUR is in the red in G10, with CAD the best performer, up 0.24%.
- Main support in EURCAD comes at 1.43589, last week's low and lowest print since 27th June.
