Asia-Pacific

Singapore Eases Monetary Policy as Growth Sputters. Singapore became the latest Asian nation to take policy action to support its sputtering economy. Singapore’s central bank put the local currency on a slower pace of appreciation Wednesday, easing its currency policy for the second time this year. Singapore’s economy expanded 0.1% on-quarter on a seasonally adjusted, annualized basis in the July-to-September quarter. The Singapore central bank said in its half-yearly monetary policy statement that it would “slightly” reduce the rate of appreciation of the Singapore dollar against a basket of currencies of the nation’s main trading partners. (WSJ)

India’s Wholesale Prices Decline for 11 Straight Months. India’s wholesale prices fell for the 11th straight month as central bank Governor Raghuram Rajan kept monetary policy accommodative. The wholesale price index dropped 4.54% in September from a year earlier, the Commerce Ministry said in a statement on Wednesday, more than the 4.42% decline predicted by the median estimate in a survey of 36 economists. The gauge had fallen 4.95% in August. Rajan cut interest rates by 50 basis points last month and said policy must stay accommodative to the extent possible. The Reserve Bank of India will now shift focus to its 5% CPI target for March 2017, Rajan had said. (Bloomberg)

Chinese Inflation Eases by More Than Expected. Consumer price inflation in China eased by more than expected in September. China's CPI rose 1.6% in September compared with a year earlier, China's National Bureau of Statistics (NBS) said. That was lower than analysts' forecasts of 1.8%, and down from the rate of 2% recorded in August. Producer prices fell for a 43rd straight month as manufacturers cut prices to win business. The latest inflation figures added to fears of a rapid slowdown in China’s economy. China's producer price index fell 5.9% in September from a year earlier. CPI rose 0.5% month-on-month in September 2014, compared to a 0.1% growth last month. (BBC)

China Imports Drop for Eleventh Month as Export Slump Moderates. China’s imports extended the longest losing streak in six years, underscoring the headwinds to global growth from a re-balancing in the world’s second-largest economy. Imports plunged 17.7% in yuan terms in September from a year earlier, widening from a 14.3% decrease in August and posting an eleventh straight decline. Exports fell 1.1% in September in yuan terms, the customs administration said Tuesday, compared with a 6.1% drop in August. The trade surplus was 376.2 billion yuan ($59.4 billion). The import slide reflects this year’s plunge in commodity prices and tepid domestic demand. (Bloomberg)

Japan September Wholesale Prices Fall 3.9% YoY. Japanese wholesale prices fell 3.9% in the year to September, Bank of Japan data showed on Wednesday. The fall in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compares with the median market forecast for a 3.9% annual decrease and follows a 3.6% annual decrease in August. Overall final goods prices -- the prices of finished products charged to businesses -- were unchanged from a year earlier. Domestic final goods prices, which loosely track the consumer price index, fell 1.1% from a year earlier. (Reuters)

Australia Consumer Confidence Rebounds, Upbeat on Jobs. A measure of Australian consumer sentiment rebounded in October as people became more optimistic about the near-term economic outlook while confidence on the labor market was its strongest in almost four years. The survey of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment rose a seasonally adjusted 4.2% in October. The index reading of 97.8 was 3.2% higher than in October last year and showed pessimists still just outnumbered optimists. (Reuters)

Philippines' Aquino Says Wants to Join Trans-Pacific Partnership. Philippine President Benigno Aquino said on Wednesday he wanted the country to join the Trans-Pacific Partnership (TPP) since most countries that signed up for the trade pact were existing allies. Philippines has been invited to join the second round of countries, Aquino said. The main proponent of the trade pact, the United States, is one of the Philippines' biggest trading partners. (Reuters)

New Zealand Posts Budget Surplus for First Time since 2008. New Zealand's government on Wednesday posted a budget surplus for the first time since 2008, fulfilling a financial target it set itself after borrowing billions of dollars to pay for the fallout from the global financial crisis and a devastating earthquake. The slim surplus of 414 million New Zealand dollars ($275 million) in the year ending June represented just 0.2% of the nation's economy. (AP)

USA

Retail Sales Rise Less Than Forecast as Americans Save More. Consumers in the U.S. tempered purchases at retailers in September, pocketing the savings from lower fuel costs and making for a weak finish to the third quarter. The 0.1% gain followed little change in the prior month that was weaker than previously reported, Commerce Department figures showed Wednesday. The median forecast of 82 economists surveyed called for a 0.2% advance. More than half of merchant categories showed decreases. Seven of 13 major categories showed declines, led by a 3.2% plunge at service stations as fuel costs retreated. The drop was the biggest since January. (Bloomberg)

Wholesale Prices in U.S. Decline by Most since Start of Year. Wholesale prices in the U.S. declined in September by the most since the start of the year as costs fell for gasoline, food and brokerage services. The 0.5% decrease in the producer-price index was the biggest since January and followed no change in August, Labor Department figures showed Wednesday. The median forecast of economists called for a 0.2% drop. Costs were down 1.1% over the past 12 months.

U.S. Mortgage Applications Tumble after Rule Change. U.S. mortgage application activity plunged last week from an eight-month high as a rule change on loan disclosure slowed the processing of loan requests, a mortgage industry group said on Wednesday. The Mortgage Bankers Association said its index on mortgage application volume in the week ended October 9 fell to 387.0, down 27.6% from the prior week. The rule is known as the TILA-RESPA Integrated Disclosures rule also known as TRID. MBA's chief economist Mike Fratantoni said application volume plummeted last week as lenders significantly revamp their business processes, and as a result dramatically slowed the pace of activity. (Reuters)

Fed's Tarullo Against 2015 Rate Hike Amid Fed Split Over Timing. Federal Reserve Governor Daniel Tarullo on Tuesday said the Fed should not hike interest rates this year, in comments that point to sharp divisions within the U.S. central bank over America's readiness for higher rates. Tarullo is the second Fed governor this week to urge caution on the timing of rate hikes. Tarullo said inflation has not rebounded as one would expect given the recent fall in the U.S. jobless rate and that there were disinflationary pressures in the global economy. (Reuters)

Europe

Britain’s Inflation Rate Unexpectedly Drops Back below Zero. Britain’s inflation rate turned negative for only the second time since 1960 in September, reflecting a weak price backdrop that the Bank of England has warned will persist into 2016. Consumer prices fell an annual 0.1% after stagnating in August, the Office for National Statistics said in London Tuesday. Economists had forecast stagnation. Prices last declined in April, which was the first sub-zero reading since 1960. The figures will reinforce the view that the BOE is still months away from raising its benchmark interest rate from a record-low 0.5%. (Bloomberg)

U.K. Unemployment Unexpectedly Drops to Least Since 2008. U.K. unemployment fell to its lowest rate since mid-2008 in a sign that the labor market is withstanding strains from the global economy. The jobless rate declined to 5.4% between June and August from 5.5% in the previous three months, the Office for National Statistics said. Economists in a survey forecast no change. Pay growth excluding bonuses slowed to 2.8% from 2.9%. Adjusted for prices, wage growth held at 2.7% in the latest three months. That may boost consumer spending. (Bloomberg)

EU Revamps Trade Policy in Face of Protests. The European Commission launched a new trade policy on Wednesday designed to connect more with a skeptical public and to conclude more free trade agreements, notably reviving talks with the United States. The strategy to make trade policy more effective and transparent and rooted in values such as sustainable development and human rights is a response to heated protests against the planned EU-U.S. Transatlantic Trade and Investment Partnership (TTIP). The new policy would be aimed to ensure that trade actually delivered economic benefits, including to smaller firms, would entail publishing negotiating texts and including anti-corruption rules and provisions on core labor standards in trade agreements. (Reuters)

Germany Trims 2015 Economic Growth Forecast to 1.7%. The German government has trimmed its growth forecast for this year, citing weakness in China and other major emerging economies. Economy Minister Sigmar Gabriel said Wednesday that Berlin now expects growth of 1.7% in Europe's biggest economy, down slightly from the 1.8% the government predicted in April. He left the forecast for 2016 unchanged at 1.8%. Gabriel said the emissions-rigging scandal at Volkswagen "has no enduring effect" on current economic forecasts. (AP)

Germany Sells Notes at Sub-Zero Yields as Mizuho Eyes ECB Limits. Germany sold five-year government debt with a negative yield for the first time since April amid speculation that the Bundesbank may reach its limit on some bond purchases months before the intended completion of the European Central Bank’s stimulus plan. Benchmark German 10-year bunds advanced along with their euro-area peers, boosting demand for fixed-interest assets. The ECB tweaked its QE program last month by raising its cap on some of the bonds it can buy to 33% per security from 25%. (Bloomberg)

Ireland Plans Tax Cuts, Spending Hikes as Election Looms. Ireland has crafted its second consecutive expansionary budget, with an expected 1.5 billion euros ($1.7 billion) in tax cuts and spending hikes, as the country accelerates its recovery from an international bailout and banking crisis. The 2016 budget being unveiled Tuesday will be the last before Prime Minister Enda Kenny calls an election expected in March 2016. (AP)

Currencies

Dollar Sags to Seven-Week Lows on Weak U.S., Chinese Data. The dollar sank to a seven-week low against a basket of currencies on Wednesday as more signs of slowing growth in the United States and China raised doubts the U.S. Federal Reserve will raise interest rates later this year. The dollar index was last down 0.95% at 93.863. Against the yen, the dollar hit a 1.5-week low, last 0.8% lower to 118.75 yen. The euro reached a seven-week high against the greenback. It was last up nearly 1% at $1.1487. Sterling jumped to its strongest levels against the dollar in three weeks on upbeat employment data. It was up 1.6% at $1.5492. (Reuters)

Ringgit Falls Most in Three Weeks as Oil Prices Slump Overnight. Malaysia’s ringgit fell the most in three weeks after Brent crude prices slumped overnight in New York, renewing concern about the impact on government finances for Asia’s only major oil exporter. The ringgit depreciated 1% to 4.1815 a dollar in Kuala Lumpur, according to data from local banks. It declined 0.2% on Monday when Brent crude fell 5.3%, the biggest drop since September 1. The currency rallied 6.8% last week in the steepest gain since 1998. (Bloomberg)

Commodities

Oil Down Again; Global Glut Worry Offsets U.S. Output Drop. Oil closed down on Wednesday and extended losses in post-settlement trade as worries about a growing supply glut kept crude under pressure this week, offsettting recent views that declining U.S. production would buoy prices. U.S. crude settled down $0.02 at $46.64. After the API data, it tumbled $0.66. Brent settled down $0.09 at $49.15, then slid $0.46 in post-settlement trade. (Reuters)

Oil Surplus to Persist in 2016 as IEA Sees Demand Growth Slowing. Global oil markets will remain oversupplied next year as demand growth slows and Iranian exports are poised to recover with the lifting of sanctions, the International Energy Agency said. While supplies outside OPEC will decline in 2016 in response to lower prices, demand growth will ease from this year’s five-year high amid a weaker outlook for the world economy, allowing the crude surplus to endure, the IEA predicted. Global oil demand growth will revert to long-term trend levels of 1.2 million barrels a day in 2016, down from 1.8 million this year, amid a softer economic outlook for oil producers. (Bloomberg)

Gold Hits 3.5-Month High on Talk of Delay in Fed Rate Rise. Gold rallied to 3.5-month highs on Wednesday, as soft U.S. data and concerns over deflationary pressures in China fueled expectations the U.S. Federal Reserve will hold off raising interest rates, pressuring stocks and the dollar. Spot gold peaked at $1,188.20 an ounce, its highest since June 23, and was up 1.6% at $1,187.56 an ounce at 1909 GMT. U.S. gold futures for December delivery settled up 1.2% at $1,179.80 an ounce. Silver was up 1.7% at $16.16 an ounce, platinum was up 0.8% at $994.75 an ounce, and palladium was up 2.8% at $698.50 an ounce. (Reuters)