Malaysia

Malaysia's Consumer Sentiment at New Low, Current Income Falls. The consumer sentiment index (CSI) has fallen to a new low of 70.2 in the third quarter as current income deteriorates, according to the Malaysian Institute of Economic Research (MIER). Consumer confidence slipped further than the 71.7 points recorded in the second quarter. The institute added that shopping plans were on low gear. The employment index for the same period fell to low levels since the fourth quarter of 2008. One consolation is that the fear of higher prices has moderated. (The Star)

Malaysia Maintains Ranking in World Bank's Doing Business Report. Malaysia has maintained its 18th position out of 189 economies in the 2016 World Bank's Doing Business Report (DB 2016). International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the ranking proved that the World Bank acknowledged the country's significant improvements in regulatory processes. According to the report, Malaysia remained among the top 20 economies in the world, even as the country battled headwinds from global economic volatilities. (Bernama)

Asia-Pacific

Japan September Factory Output Rises 1.0%. Japan's industrial output rose 1.0% in September, data showed on Thursday, suggesting the economy is emerging from the doldrums as the pain from China's slowdown begins to ease. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to rise 4.1 percent in October and shrink 0.3 percent in November, data showed. (Reuters)

Japan's Quarterly Retail Sales Rebound Offers BOJ Some Relief. Japan's retail sales jumped in the third quarter as falling prices and gradual wage gains underpinned consumption. On a quarterly basis, retail sales increased 1.8% in July-September after a feeble 0.2% gain in April-June, a sign household spending was emerging from the doldrums. The data offers some relief for the Bank of Japan, which is under pressure to expand stimulus further as early as Friday. (Reuters)

IMF Official Says China's Growth Could Beat Forecast in 2015. China's economy could overshoot the IMF’s forecast and grow close to 7% this year although the outlook for the medium term is more uncertain, a senior IMF official said on Wednesday. Changyong Rhee, director of the IMF's Asia and Pacific Department, said China's growth rate of 6.9% between July and September meant the country could beat the IMF's forecast of 6.8% expansion in 2015. Rhee said the Fund did not see a hard landing for China and was more concerned about the potential impact of slower growth on other countries in the region, partly due to closer trade ties. (Reuters)

Indonesia Drops Visa Rules for Foreign Workers in Latest U-Turn. Indonesia has dropped rules imposed earlier this year that added visa paperwork and restrictions for foreign workers in the country. The measures scrapped include a need for visas for foreigners attending work meetings in Indonesia, permits for non-resident company directors, and a requirement to have 10 local workers for every non-Indonesian. The government felt the original rules, imposed in July, didn’t support investment. (Bloomberg)

Thai Finance Ministry Cuts 2015 Growth Projection. Thailand's finance ministry cut its 2015 GDP growth estimate for the fourth time this year, citing the global economic slowdown. The ministry's Fiscal Policy Office said Wednesday that it has revised down its 2015 economic growth forecast to a range of 2.6% and 3.1% (with a mean forecast of 2.8%) from an earlier projection of 2.5%-3.5% (mean forecast of 3.0%).. Krisada Chinavicharana, director-general of the FPO, said in a statement that the lower growth estimate was largely due to the global economic slowdown. (Dow Jones)

Australia Inflation Surprisingly Soft. Australian inflation was surprisingly subdued last quarter with few signs of price pressures right across the economy, an open invitation to further cuts in interest rates that sent the local dollar sharply lower. Key measures of underlying inflation rose by just 0.3% in the third quarter, the smallest increase since 2011 and below market forecasts of 0.5%. The annual pace of core inflation slowed to around 2.15%.(Reuters)

USA

Fed Puts December Rate Hike Firmly on the Agenda. The U.S. Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play. Investors had expected the Fed to remain pat on rates, but the overt reference to December came as a surprise. The central bank also downplayed recent global financial market turmoil and said the U.S. labor market was still healing despite a slower pace of job growth. "In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2.0% inflation," the Fed said in a statement. (Reuters)

U.S. Third-Quarter GDP Forecasts Raised After Trade Data. U.S. third-quarter economic growth could surprise on the upside after government data on Wednesday showed the goods trade deficit narrowed sharply to a seven-month low in September. Economists had expected GDP to expand at an annual rate of 1.6% last quarter, according to a poll. Many, however, raised their forecasts after the Commerce Department reported that the goods trade deficit fell to $58.6 billion from $67.2 billion in August. Third-quarter GDP estimates were raised by as much as four-tenths of a percentage point to as high as a 2.0% rate. (Reuters)

U.S. MBA Mortgage Applications Fall 3.5% Last Week. The number of mortgage application in the U.S. fell last week, after rising sharply the week before, industry data showed on Wednesday. The Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, declined by a seasonally adjusted 3.5% in the week ending October 23 to 417.4. That follows a gain of 11.8% to 432.7 in the preceding week. (Dow Jones)

Europe

Survey Finds German Consumer Confidence Slipping. A survey has found that German consumer confidence has slipped for the third consecutive month, with the refugee crisis weighing on economic expectations. The GfK research group said Wednesday its forward-looking consumer climate index dropped to 9.4 points for November - still a healthy reading -from 9.6 in October. The government recently trimmed its 2015 growth forecast for the economy to 1.7 from 1.8%. The GfK survey found consumers' economic outlook at its lowest level in over two years. (AP)

Sweden’s Riksbank Expands QE as ECB Considers More Stimulus. The Riksbank expanded its bond-purchase plan for a fourth time since February as policy makers in Sweden struggle to keep pace with stimulus measures in the euro zone. The quantitative easing program was raised by 65 billion kronor ($7.6 billion). The bank opted to keep the benchmark repo rate at minus 0.35%, as estimated by 13 of the 15 analysts surveyed. “An initial raise in the rate will be deferred by approximately six months compared with the previous assessment,” the Riksbank said on Wednesday. (Bloomberg)

Norway Wealth Fund Lost 4.9% in Third Quarter as Stocks Fell. The world’s largest sovereign wealth fund posted its biggest loss in four years, just as the Norwegian government prepares to make its first ever withdrawals to plug budget deficits. The fund lost 273 billion kroner ($32 billion) in the third quarter, or 4.9%, as stocks declined 8.6% and bonds rose 0.9%, the Oslo-based fund said on Wednesday. It was the first back-to-back quarterly loss in six years. Budget documents released this month showed the government will withdraw about $440 million next year. (Bloomberg)

Currencies

Dollar Rebounds as December Rate Hike Back in Play. The dollar soared to its highest level in more than two months against the euro on Wednesday, propelled by renewed expectations the U.S. Federal Reserve could raise interest rates in December. In late trading, the euro was down 1.2% at $1.0915, after falling below $1.09 to its weakest level since early August. Against the Japanese yen, the dollar touched 121 and was last at 121.16 yen, up 0.6%. The dollar also advanced against the Swiss franc, to 0.9959 franc, the highest since mid-March. It last traded up 0.9% at 0.9949. (Reuters)

Commodities

U.S. Crude Up 6%, Stock Build Fails to Extend Three-Day Rout. U.S. crude oil prices rose more than 6% on Wednesday as the government reported an inventory build that reversed bearish market expectations, putting the market on a volatile course after three straight days of losses. U.S. crude settled up $2.74 at $45.94 a barrel. Brent closed up $2.24 at $49.05. U.S. crude's rise of 6% was the largest in two months. Brent's 5% advance was the biggest in three weeks. (Reuters)

Gold Down 1% after Fed Signals Possible December Rate Hike. Gold prices fell 1% on Wednesday, in the metal's weakest session in a month, as the market turned lower after the U.S. Federal Reserve left the door open to a possible interest rate hike in December and the dollar hit a 2.5-month high. Spot gold was down 1.1% at $1,153.73 at 1852 GMT, after falling to $1,152, its lowest since October 13. U.S. gold futures for December delivery settled up 0.9% at $1,176.10 an ounce prior to the Fed's policy statement. Silver also turned down, falling 0.3% to $15.80 an ounce, while palladium fell 0.3% to $672.50. Platinum pared gains and was up 1.1% at $993.50 an ounce. (Reuters)