Markets buoyant on Japan data, European PMI... Could big banks be allowed to cut capital reserves...
Markets buoyant on Japan data, European PMI
Commodities have remained stable overnight with little movement for oil and gold prices; so the markets are focusing on trade data from Japan and European PMI data.
Japan’s exports data showed a lower-than-expected decline despite tougher conditions in September for exporters due to a stronger yen. Markets were initially unimpressed with the figures but stocks gained later in the session. Sydney was the laggard as the financials sector weighed.
In Europe, markets are digesting PMI data for the Eurozone and separate readings for Germany and France. Germany and the bloc as a whole ticked higher while France slipped.
Wall Street and Toronto are expected to open higher.
Could big banks be allowed to cut capital reserves
Tough measures to ensure that US banks have enough reserve capital to cover another financial crisis could be watered down.
Reuters reports Monday that the regulators are considering whether the requirement for big banks to set aside $6 of capital for every $100 of assets should be reduced.
The Supplementary Leverage Ratio rule has long been criticized by the banks as being too costly but it’s reported that some regulators are now privately questioning its effectiveness.
Commodities have remained stable overnight with little movement for oil and gold prices; so the markets are focusing on trade data from Japan and European PMI data.
Japan’s exports data showed a lower-than-expected decline despite tougher conditions in September for exporters due to a stronger yen. Markets were initially unimpressed with the figures but stocks gained later in the session. Sydney was the laggard as the financials sector weighed.
In Europe, markets are digesting PMI data for the Eurozone and separate readings for Germany and France. Germany and the bloc as a whole ticked higher while France slipped.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,145.71 (-0.09 per cent) | -0.63 per cent | +2.83 per cent |
| TSX Composite | 14,939.04 (+0.61 per cent) | +1.64 per cent | +7.06 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 7,033.96 (+0.19 per cent) | +1.80 per cent | +9.15 per cent |
| German DAX | 10,794.16 (+0.78 per cent) | +1.57 per cent | +0.00 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,367.58 (+1.20 per cent) | +2.81 per cent | -5.70 per cent |
| Japan Nikkei | 17,234.42 (+0.29 per cent) | +2.87 per cent | -8.45 per cent |
| Other Data (at 2.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 51.87 (+0.17 per cent) |
50.84 (-0.02 per cent) |
1266.80 (-0.07 per cent) |
U$0.7499 |
| Aus. Dollar |
|||
| U$0.7639 | |||
Could big banks be allowed to cut capital reserves
Tough measures to ensure that US banks have enough reserve capital to cover another financial crisis could be watered down.
Reuters reports Monday that the regulators are considering whether the requirement for big banks to set aside $6 of capital for every $100 of assets should be reduced.
The Supplementary Leverage Ratio rule has long been criticized by the banks as being too costly but it’s reported that some regulators are now privately questioning its effectiveness.
