European stocks were little changed and oil fell as investors assessed declining prospects for an OPEC deal and risks from Italy’s referendum. Asian stocks declined, while S&P futures pointed to a fractionally higher open, erasing 3 points from yesterday's drop.
China's curbs to cool its overheating property market have a long way to go as October home prices grew at the fastest rate since record-keeping began in 2011, despite a significant slump in property sales volume as more discriminating buyers appear to have stepped back from the recent buying frenzy.
China Oceanwide Holdings, a Chinese financial conglomerate, agreed to buy US insurer Genworth Financial for $2.7 billion in cash, a 4% premium to closing, and pledging to help the U.S. firm manage its debt and strengthen life insurance units after it was hurt by higher-than-expected losses tied to long-term care coverage.
There is a reason why, when the Chinese Q3 GDP print is revealed shortly, it will be an utterly meaningless indicator - the number is a goalseeked, arbitrary political construct meant to convey not information about the economy, but about Beijing's intentions what it may or may not do in the future. Unfortunately, since it is the only official number to come out of Beijing, hours will be spent debating it for the next few days. As such, here are 5 key things to focus on...
Since this is China, where one zombie asset bubble dies (briefly) only for another bubble to be (re)born, at the same time Beijing was set to pop the local housing bubble, the population turned its attention to cars. In September, Chinese passenger-vehicle sales surged a gargantuan 29% last month, led by small-car makers Geely Automobile Holdings Ltd. and Mazda Motor Corp., as consumers seeking to beat an expiring tax cut helped clear inventory on dealer lots.
With China on holiday, overnight sessions remain relatively quiet: at this moment, S&P500 futures are little changed as European stocks fall for first day in seven, on yesterday's concern that the ECB is moving toward tightening monetary policy; Asian indices rose slightly for third day. WTI climbs to $49.40, the highest since June 30 after yesterday's surprisingly large API crude draw report.
With China, German and South Korea closed for holiday, it has been a relatively quiet day in overnight equity trading, especially in the one stock everyone is keeping a close eye on, Deutsche Bank, whose ADRs are trading fractionally lower, down under 1% in premarket trading. Cable plunged on "Hard Brexit" fears sending the FTSE100 to fresh 16 month highs.
"I think what's going on in China is troubling ... some of the valuations there are really quite extraordinary... We've double checked these numbers about seven times, because I found them quite hard to believe."
The physical holdings of Chinese gold ETFs have surged five-fold from 7 tonnes at the end of January, to 35 tonnes at end of August. The Huaán Yifu Gold ETF, which was holding 23 tonnes in August, entered the global top 15 list.
The dollar index rose to a two-week high on Monday, while bond yields jumped to their highest since June and global stocks sold off after senior Federal Reserve officials indicated a U.S. interest rate increase was on the cards in the near term. The Fed effect - and the stronger dollar - reverberated through markets, pressuring stocks in Europe and emerging markets, pushing oil below $47 and the commodity complex lower.