Wednesday, October 19, 2016

Overnight

Last night in our Overnight post we mentioned: "China once again captured some of the economic spotlight overnight as the world's second-biggest economy grew in the third quarter at 6.7%, keeping up with growth in the previous quarter, according to official data, assuming everyone trusts them."

Well, here's a post from today's WSJ. We say it's about ime.


BEIJING—Fresh doubts emerged over the reliability of Chinese statistics on Wednesday after officials said the economy grew 6.7%—for the third consecutive quarter.
It was the first time since Beijing started releasing quarterly figures in 1992 that it had achieved such a feat of consistency.
Economists say it is rare for a fast-growing economy to clock the same growth quarter after quarter. In China, it happens because Beijing sets a hard economic target—6.5% to 7% this year—then does what it takes to reach this level, whether through fiscal stimulus, arm twisting of state companies or creative accounting, these people say.wsj.com/articles/economists-question-chinas-consistent-growth-numbers.
This is still another reason as noted with the BoE and the Fed essentially saying not greed but inflation is good we think slow growth and inflation are ahead and you need to invest accordingly.
The third presidential debate that was much on Asian investor minds is now history and we'll have to see how those investors interpreted it. The Nikkei was up 1.07%, the Hang Seng higher 0.70%, the Yen traded up 0.13% at 103.58 against the dollar, the U.S. 10-year Treasury -1/32 yield 1.78% and the DJIA up 0.22% at 18,202.62. The ASX 200 traded at 5,446.50 p 11.14 points.


The Nikkei rose 0.9 percent to 17,156.32 in earlier trade, after hitting as high as 17,167.91 earlier, the highest level since May 31.Data from the U.S. Energy Information Administration showed crude stocks fell 5.2 million barrels in the week ended October 14, shattering market expectations for a 2.7-million barrel build, Reuters reported.That sent global benchmark Brent higher by 1.9 percent to $52.67 a barrel, while U.S. crude futures advanced 2.6 percent to $51.60. The front-month November contract for U.S. crude is set to expire following Thursday's session. Gold was up $3.10 at 1273, 0.24% gain. The dollar index was +0.08 at 97.93 versus previous close of 97.85. Low for the day 97.84,high 97.97.

















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