Malaysia

 Fitch On Budget 2014: Negative Outlook Remains, Implementation Is Key. Fitch Ratings hailed the proposed move to lower the Malaysian Government deficit and the introduction of the Goods and Services Tax (GST) as potentially constructive steps, but said it was keeping the sovereign credit rating on Negative Outlook, pending “a track record of budget management”. “The Outlook on the sovereign's 'A-' Foreign- and 'A' Local-Currency Ratings was revised to Negative in July 2013, due to the deterioration in public finances and a perceived weakening of prospects for fiscal consolidation and budgetary reform,” it reminded. (The Star)

 No Impact On Ratings From Budget 2014: S&P. Standard & Poor's Ratings Services issued a statement Monday saying that the Malaysian government's proposed 2014 budget has no impact on the sovereign ratings and outlook on Malaysia. S&P has Malaysia on foreign currency A-/Stable/A-2; local currency A/Stable/A-1; axAAA/axA-1+. The ratings agency said the budget’s target deficit of 3.5% of GDP for 2014, from 4% in 2013, was in line with its expectations of a gradual fiscal consolidation over the medium term. (The Star)

Asia

 S.Korea Oct Consumer Sentiment At 1-1/2 Yr High. South Korea's key measure of consumer confidence in October stepped up to its highest level since mid-2012 as South Koreans feel increasingly optimistic about their living conditions, a survey by the central bank showed on Monday. The composite consumer index (CCSI) inched up to 106 in October, compared to a reading of 102 in the previous month, the Bank of Korea said. It was the highest index reading posted since May 2012. A reading above 100 indicates consumers feel more positive in the coming month than the long-term average sentiment accrued from 2003 to 2012. (Reuters)

 Thailand's Dismal Sept Output Raises Recovery Concerns. Thai factory output fell 2.9%in September from a year earlier, more than expected, and the Industry Ministry sees no recovery this year, adding to concern about how quickly the country can get out of recession. "Output should be negative this year because of last year's high base and falling demand for goods from trading

partners," Somchai Harnhirun, head of the ministry's Office of Industrial Economics, said after Monday's release of September data. For the first nine months, it fell 1.87% from a year earlier. September was the sixth straight month in which output has fallen. The median forecast of a Reuters poll was for a decline of only 0.05%. For August, the ministry revised the fall to 2.80% from 3.12%. (Reuters)

USA

 Factory Production in U.S. Increases Less Than Forecast. Factory production in the U.S. rose less than forecast in September, indicating a pause in manufacturing leading into the budget battle that partially closed the federal government. Output at factories rose 0.1 % after a revised 0.5 % gain in August that was smaller than initially estimated, figures from the Federal Reserve showed today in Washington. The median forecast of economists in a Bloomberg survey called for a 0.3 % September gain. Total industrial production, which also includes output by mines and utilities, advanced 0.6 % as higher temperatures drove up electricity use. (Bloomberg)

 Pending Sales Of Existing Homes Slump By Most In Three Years. Fewer Americans than forecast signed contracts to buy previously owned homes in September, the fourth straight month of declines, as rising mortgage rates slowed momentum in the housing market. The index of pending home sales slumped 5.6 %, exceeding all estimates in a Bloomberg survey of economists and the biggest drop in more than three years, after a 1.6 % decrease in August, the National Association of Realtors reported today in Washington. The index fell to the lowest level this year. (Bloomberg)

Europe

 UK Retail Sales Growth Grinds To A Halt In October. Annual growth in British retail sales unexpectedly ground to a halt over the past month, hit by the first big fall in supermarket sales since February, the Confederation of British Industry said on Monday. The CBI distributive trades survey's retail sales balance slumped to +2 from a 15-month high of +34 struck in September, a much weaker outturn than the +33 forecast by economists, and breaking a three-month run of strong sales growth. However the CBI said retailers were forecasting a return to solid sales growth next month, and that they had increased orders placed with suppliers. (Reuters)

Currencies

 Dollar Sticks To Range; Retail Sales In Focus. The dollar traded in tight ranges against most rivals on Monday as market participants awaited a continuation of the Federal Reserve’s monthly bond purchases later this week. The euro traded at $1.3805, little changed from $1.3802 late Friday in North America, while the British pound edged down to $1.6155 from $1.6173 on Friday. The Japanese yen eased, with the dollar ticking up to ¥97.65 from ¥97.40 at the end of the previous week. The Australian dollar was little changed at 95.80 U.S. cents versus 95.83 U.S. cents on Friday. The ICE dollar index — which tracks the currency against six rivals — inched up to 79.242 from late Friday’s 79.181. (Market Watch)

Commodities

 Brent Jumps On Libya Output. Brent crude rose nearly 2 % on Monday after Libya's oil exports dropped, while stocks were little changed at record highs on expectations that the Federal Reserve will keep its loose monetary policy in place this week. Brent rose 1.6 % to $108.59 a barrel and U.S. crude added 0.4 % to $98.21 a barrel. (Reuters)

 Gold Gains As Investors Bet On Continued Fed Stimulus. Gold reached fresh five-week highs on Monday on growing confidence the U.S. Federal Reserve would stick with its bullion-friendly stimulus at a policy meeting later this week. Spot gold was up $1.76, or 0.13 %, at $1,354.04 an ounce by 2:08 p.m. EDT (1808 GMT). Spot silver rose $0.02, or 0.09 %, to $22.50 an ounce and was on track to rise 4 % this month. Spot platinum was up $24.59, or 1.7 %, at $1,469.49 an ounce on prospects strikes in South Africa could curb supply. It has risen 4.9 % this month. Spot palladium was up $3.78, or 0.51 %, at $743.75 an ounce and is on track to rise 0.33 % this month. (Reuters)