FED Cuts 25 bp as largely expected by MaBiCo.com

FED Cuts 25 bp as largely expected

08:30 2007/11/01

While equity markets welcome the interest cut, dollar remains well offered.

Overnight News Bullets

UK Nationwide House Prices MoM/YoY (Oct) out at 1.1%/9.7% vs. 0.2%/8.5% expected.
GE Retail Sales MoM/YoY (Sep) out at 2.3%/-2.2% vs. 0.8%/-0.6% expected.
FR PPI MoM/YoY (Sep) out at 0.4%/2.7% vs. 0.3%/2.5% expected.
SW Consumer Confidence (Oct) out at 17.7 vs. 16.0 expected.
NO Retail Sales MoM/YoY (Sep) out at 1.5%/7.4% vs. 0.5%/6.1% expected.
NO Unemployment Rate AKU (Aug) out at 2.5% as expected.
E-Z Unemployment Rate (Sep) out at 7.3% vs. 6.9% expected. Prior revised to 7.4% from 6.9%.
E-Z CPI Estimate YoY (Oct) out at 2.6% vs. 2.3% expected.
E-Z Consumer Confidence (Oct) out at -6 vs. -5 expected. Industrial Confidence out at 2 as expected.
UK GfK Consumer Confidence (Oct) out at -8 as expected.
SZ KOF Swiss Leading Indicator (Oct) out at 2.02 vs. 2.1 expected.
US MBA Mortgage out at 3.8% vs. 0.0% prior.
US ADP Employment Change (Oct) out at 106K vs. 58K expected.
US GDP Annualized (3A Q) out at 3.9% vs. 3.1% expected. GDP Price Index out at 0.8% vs. 2.0% expected.
US Personal Consumption (3Q A) out at 3.0% vs. 3.2% expected.
US Core PCE QoQ (3Q A) out at 1.8% vs. 1.5% expected.
US Employment Cost Index (3Q) out at 0.8% vs. 0.9% expected.
CA GDP MoM (Aug) out at 0.2% vs. 0.1% expected.
PD Base Rates at 4.75% unchanged as expected.
NO Deposit Rates at 5.0% unchanged as expected.
US Chicago PMI (Oct) out at 49.7 vs. 53.0% expected. Prior at 54.2
US Construction Spending MoM (Sep) out at 0.3% vs. -0.5% expected.
US NAPM Miwaukee (Oct) out at 63 vs. 70 prior.
US DOE Inventories: Crude at -3894k vs. 400k exp, Gasoline at 1295K vs. -200K exp., Distillate out at 808K vs. -1000K exp, Refinery out at -0.97% vs. -0.5% exp.
US FOMC Rates 25bp lower at 4.50% as expected.
JN Net StocksInvestment out at 45.6B vs. -321.2B prior.
JN Net Bonds Investment out at 740.3B vs. 181.9B prior.
AU Retail Sales (Sep) out at 0.8% vs. 0.5% expected.
AU Retail Sales Ex Inflation QoQ (3Q) out at 1.9% vs. 1.6% expected.
AU Trade Balance (Sep) out at -1862M vs. -1000 expected.

Markets

FX: USDCAD in new all-time lows at 0.9426. GBPUSD in new 25-year highs above 2.08. EURUSD not able to sustain break above 1.45.
Fixed Income: Sold off after the FOMC as the Fed probably won??™t cut rates any further. JGB??™s following lower overnight.
Stocks: Solid increases following the FOMC ??“ S&P approaching July 2007 highs at 1556. Asia in new record highs.
Commodities: Oil taking another leg higher on weak supply, closing in on 100$/barrel. Gold (December contract) breaking 800$ for the first time in 27 years.

O/N Data Heat map:

Calendar

Today's Highlights: