There's more China data to digest, and the answer could be more central bank support for the world's second largest economy. Consumer price gains slowed in September from a year earlier, rising 1.6 percent. Producer prices sank 5.9 percent, the 43rd month of declines. Attention now turns to Monday's gross domestic product data, which is forecast to show an expansion of 6.8 percent, below the government's 7 percent target. After nine days of gains, global stocks are falling for a second session.
China's stocks fell for the first time in six days, ending the longest winning streak since July, after inflation data highlighted the fragility of the economy. The value of all Chinese equities, at the close on Tuesday, was $5.72 trillion. While that's up from a month ago, they have lost $4.33 trillion since their June 14 peak. To put that in perspective, the U.K. stock market is valued at $3.5 trillion, while the German stock market has a $1.7 trillion market cap. Japanese stocks are valued at $4.7 trillion.
Singapore's central bank disappointed some economists when it reduced "slightly" the pace of appreciation in the local dollar versus those of its trading partners. Barclays was expecting more. Singapore uses the currency rather than interest rates as its main policy tool. The nation also narrowly avoided a technical recession in the third quarter, unexpectedly expanding 0.1 percent after shrinking 2.5 percent in the second quarter. Singapore's dollar has gained 3 percent against the U.S. dollar since slumping to a six-year low on Oct.2.
The German rental property industry just got a lot hotter. Vonovia, the nation's biggest residential landlord, has offered 9.92 billion euros ($11 billion) to buy its main rival, Deutsche Wohnen. The deal is conditional on the failure of Deutsche Wohnen's planned 4.6 billion-euro purchase of LEG Immobilien. Some analysts saw that transaction as a defensive move against a potential takeover by Vonovia. The country's publicly traded residential sector is experiencing a wave of consolidation as the major players battle for size. Deutsche Wohnen shares have jumped 50 percent in the past year.
source: Bloomberg
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