Markets Overview

Markets are back to full strength on Wednesday as Japanreturns from its Culture day holiday. The big event here willbe the IPO of Japan Post Holdings. In Australia, we willreceive September and Q3 retail trade data, together with theSeptember trade balance. Focus for the rest of the economieswill be on the various service sector PMI readings, includingthe US non-manufacturing ISM. The UK services PMI willalso be of interest on Wednesday, especially after the muchstronger than expected manufacturing PMI on Monday,and ahead of the MPC decision due on Thursday. In theEurozone, the services and composite PMIs will be releasedalongside Eurozone PPI data. ECB Draghi and Constanciowill also be speaking early in the European session.

    In the US, all eyes will be on the ADP employment data whichnormally gives the best lead on the payroll data on Friday,though last month’s payroll data was somewhat weakerthan might have been expected from the ADP. Markets arelooking for a 180k rise in October’s ADP employment report,which should underperform Friday’s payroll after 2 straightoutperformances. September’s trade deficit is expectedto narrow to $41.0bn from $48.3bn. The final Markit nonmanufacturingPMI data is also due alongside the ISM nonmanufacturingindex.

    In Asia today, China’s Caixin Services PMI for October(Sep: 50.5) will be coming due at 9.45am. October NikkeiPMI for Singapore (Sep: 51.4), Hong Kong (Sep: 45.7) andIndia (Sep: 51.3) will also be announced today.

    Japanese markets reopen from holiday and focus is onthe IPOs of the state-owned Japan Post Holdings and itsbanking and insurance units which start trading today.