Asia

 Japan Posts Trade Deficit For 15th Consecutive Month. Japan has posted a trade deficit for the 15th month in a row in September as a weak yen pushed up import costs. The deficit for the month rose to 932bn yen ($9.5bn), up 64% from a year ago, as imports rose 16.5%. A series of aggressive measures aimed at reviving Japan's economy has resulted in the yen falling nearly 25% against the US dollar since November. While that has helped Japan's exports by making them cheaper, it has also made imports more expensive. However, the growth in exports has not been sufficient enough to offset the higher import bill. (BBC)

North America

 Sales Of Existing U.S. Homes Fall As Affordability Drops. Sales of existing U.S. homes fell in September for the first time in three months as higher prices and mortgage rates curbed demand in an industry that helped boost the expansion last year. Purchases dropped 1.9 % to a 5.29 million annual rate from a revised 5.39 million pace in August that was the strongest since 2009, the National Association of Realtors reported today in Washington. The median price of a house climbed 11.7 % from 2012, pushing affordability to an almost five-year low, the group said. (Bloomberg)

 Canada Consumer Sentiment Falls Third Week On Job Outlook. The Bloomberg Nanos Canadian Confidence Index fell for a third consecutive week as optimism over job security deteriorated. The measure of the economic mood of Canadians fell to 58.0 in the seven days through Oct. 18, from 58.5 the previous week. The reading for job security dropped to 66.6 from 68.4. Employment has grown by 113,100 positions through September, the slowest pace since 2001 outside of the last recession, as manufacturers and governments fire workers to cut costs. Discouraged young people dropped out of the labor market faster than new jobs were created in September, reducing the participation rate to the lowest in more than a decade. (Bloomberg)

Europe

 Cyprus To Lift Most Currency Controls By Spring 2014. Cyprus expects to lift almost all currency controls early next year, although restrictions will remain on individuals shifting funds out of the country, Finance Minister Harris Georgiades said on Monday. Separately, central bank governor Panicos Demetriades said the island's banks were likely to make further losses in 2014 as the economy worsens and non-performing loans rise, but that the sector has enough capital to cope. Cyprus imposed currency controls in March - a first for the euro zone - to prevent a bank run after savers were forced by the country's international bailout to recapitalize a major lender with their own funds and a second bank was closed down. (Reuters)

 ECB Urged To Use Single Rule In Banks' Debt Check. The European Union (EU)'s top banking regulator urged the European Central Bank (ECB) to use its standards on how to classify bad debt for a health check of lenders' balance sheets next year. The European Banking Authority (EBA) also said the examination, known as the asset quality review, should be completed by October next year to give the EBA time to use the data in stress tests. The agency proposed that supervisors consider any loan more than 90 days overdue or "from any debtor assessed as unlikely to pay its credit obligations in full" as non-performing, said the EBA. (Bloomberg)

Currencies

 Dollar Gains As Traders Await Delayed Data. The dollar scored minor gains versus rivals Monday as traders awaited a round of U.S. economic data, including September nonfarm payrolls, previously delayed by the government shutdown. The ICE dollar index, which measures the U.S. currency against a basket of six major rivals, inched up to 79.674, compared with 79.649 late Friday in North America. The euro traded at $1.3682, essentially unchanged from late Friday’s $1.3680. The British pound slipped to $1.6148 from $1.6168 at the end of the previous week. Among the top Asian currency pairs, the dollar rose against the Japanese yen to buy ¥98.18, up from ¥97.84 Friday, while the Australian dollar changed hands at 96.53 U.S. cents, down slightly from 96.67 U.S. cents. (Market Watch)

Commodities

 U.S. Crude Sinks Below $100, Brent Gap Widens. U.S. crude oil prices on Monday tumbled below $100 a barrel for the first time since July, while the discount versus European Brent hit its widest in six months as diminished Midwest inventories began to grow. U.S. oil futures for November delivery, which expire at the end of trade on Tuesday, fell $1.59 per barrel to settle at $99.22 a barrel. Brent crude futures for December delivery fell just 30 cents to close at $109.64 a barrel. (Reuters)

 Gold Flat, Volume Light After Last Week's Rally. Gold prices ended flat in extremely quiet trade on Monday, as investors stayed on the sidelines after last week's short-covering rally sparked by hopes the Federal Reserve would postpone its withdrawal of monetary stimulus. Spot gold underperformed futures, edged down 0.1% at $1,314.89 an ounce, with prices having moved in a narrow $10 range. Among other precious metals, silver outperformed, rising 1.5 % to $22.21 an ounce. Platinum edged up 0.2 % at $1,433.74 an ounce, while palladium was up 1.2 % at $747 an ounce. (Reuters) 

Source: Kenanga