NORWAY: Norwegian GDP Boosted by Services, Trade
NORWAY SEP MAINLAND GDP +0.4% M/M (FCST -0.3%); AUG +0.7% M/M
NORWAY Q3 MAINLAND GDP +0.8% Q/Q (FCST +0.4%); Q2 +1.2% Q/Q
- Norway Q3 GDP surprised to the upside, advancing by +0.8% q/q, double that of consensus expectations. The service industry and wholesale trade boosted economic activity throughout August and September, as reopening effects increased services expenditure.
- Excluding Norwegian consumption abroad, consumption data was markedly weaker. Household consumption fell 0.5% q/q. This was driven by a broad-based 2.1% q/q fall in goods consumed, which outweighed the +1.4% q/q boost in services spending.
- The increase in global oil and gas prices has driven the Norwegian trade balance to a record high. Head of National Accounts, Pål Sletten highlighted that "measured in current prices, total GDP, including oil and gas extraction, was 67 per cent higher in the third quarter than at the beginning of 2021".
- With inflation jumping to a fresh 1987 high at +7.5% y/y in October and GDP growth remaining robust, Norges Bank will look to tighten policy further. Market focus will not only be on the headline policy rate change (another 25bp expected), but also on the projection for the peak policy rate in Q1/Q2 next year.
Source: Statistics Norway
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US TSY FUTURES: Block trade
Block trade, suggest seller:
- USZ2 2.25k at 122.21
BUNDS: Gilt/Bund spread reverse the early widening
- Next support in Bund comes at 135.82, did print a 135.86 low so far.
- The move in Bund future has reversed the small early widening in the Gilt/Bund spread, now back to flat on the session.
EQUITIES: European, US Equity Futures Trade Softer Following Recovery
EUROSTOXX 50 futures remain firmer on the week as price extends the recovery from 3251.00, Oct 13 low, although price is off the Tuesday highs. Recent gains have resulted in a break of the 50-day EMA and resistance at 3492.00, the Oct 6 high and a bull trigger. Price has also arrived at a trendline resistance drawn from the Aug 17 high. The trendline intersects at 3497.40 and a clear break of this level would strengthen bullish conditions. Initial firm support is at 3352.00, the Oct 14 low. S&P E-Minis maintains a firmer tone from the Monday open as the contract extends last week’s reversal from 3502.00, the Oct 13 low. The latest recovery suggests the contract has entered a corrective phase and if correct, this is allowing an oversold trend condition to unwind. The 20-day EMA has been breached, reinforcing a bullish theme and opening 3820.00, the Oct 5 high and a bull trigger. Key support is unchanged at 3502.00.
- Japan's NIKKEI closed higher by 101.24 pts or +0.37% at 27257.38 and the TOPIX ended 3.62 pts higher or +0.19% at 1905.06.
- Elsewhere, in China the SHANGHAI closed lower by 36.58 pts or -1.19% at 3044.378 and the HANG SENG ended 403.3 pts lower or -2.38% at 16562.56.
- Across Europe, Germany's DAX trades lower by 47.09 pts or -0.37% at 12804.42, FTSE 100 lower by 41.81 pts or -0.6% at 6951.85, CAC 40 down 17.41 pts or -0.29% at 6088.63 and Euro Stoxx 50 up 1.38 pts or +0.04% at 3485.37.
- Dow Jones mini down 99 pts or -0.32% at 30593, S&P 500 mini down 11 pts or -0.29% at 3740.75, NASDAQ mini down 22.25 pts or -0.2% at 11253.25.
