On the economic data front China Sept manufacturing PMI recovered but remained in contraction territory. An official gauge
of China's factory activity manufacturing PMI rebounded to 49.8 in September from 49.5 in August. New export orders, a reliable indicator
of external demand, increased to 48.2 from 47.2 in August, while import orders, an indicator of domestic demand, recovered to 47.1 from 46.7
a month earlier. The data was mildly positive however, the broader trend remains worrying. US-China trade war continues to take a
meaningful toll on the Chinese economy. A strong US economy and an easier monetary policy will be used by Trump to continue with aggressive
trade policy. However, we have seen that antagonistic trade decision which generates a market impact often tempter Trump initial
behavior. The market's sensitivity to Trump's trade policy via tweet creates a balance to extreme hawkish trade rhetoric. Combined with
the balance fed speak suggest that equity markets upside is limited. FX Markets were uninspired as USDNZD falling 0.49% overnight as the
Kiwi reflecting the softer Chinese data and burden of the US-China trade war.
By Peter Rosenstreich
