Markets Overview

The Bank of Canada is the only G7 central bank withmonetary policy decision this week (6 Dec) and BOC isexpected to keep policy rate unchanged at 1% althoughis not a unanimous call with 3 out of 26 economists polledby Bloomberg calling for a 25bps hike (as of 5 Dec). Duringthe Asian session, the key data of interest was Australia’s3Q 2017 GDP which expanded 0.6%q/q, 2.8%y/y (slightlymissing Bloomberg median forecast of 0.7%q/q, 3.0%y/y)while the 2Q growth was revised higher to 0.9%q/q, 1.9%y/y (from 0.8%q/q, 1.8%y/y). Meanwhile, the US data docketfocus will be the November ADP jobs print. Other US dataof interest includes the final print for 3Q nonfarm productivityand unit labor costs. The European data docket includesGerman October factory orders, German construction PMIfor Nov, Eurozone retail PMI for Nov. Bank of Japan MPMmember Masai and ECB Executive Board member YvesMersch will be speaking in their respective public eventstoday. US domestic politics remains in focus we edge closerto the 8 Dec deadline for an extension of the US federalspending plan to keep the government open, US tax reformdevelopments, and developments on special CounselMueller’s Russian investigation probe.

    At 12pm, Malaysia will report Oct imports/exports numbers.

    Thereafter, the key event in Asia will be the final monetarypolicy meeting by the Reserve Bank of India for 2017.

    Market is generally expecting an unchanged stance whilewe are expecting a 25bps rate cut to 5.75% based on recenteconomic fundamentals. We had just released a reporton India’s GDP last Friday containing our concerns aboutIndia’s near term growth (India: Finally Out Of The Woods?Not So Soon, 01 Dec 2017).