Daily analysis 24 October

• Indices from Asia Pacific traded mixed during the first session of the week. While indices from Australia, Japan and South Korea traded 0.5-1.5% higher, indices from China plunged over 1%.
• Chinese Hang Seng slumped over 5%, following the CCP congress, that saw President Xi reinforce his grip on power and signalled continuation of his policies
• European index futures point to a higher opening of the cash session on the Old Continent
• US index futures are trading little changed on the day
• USDJPY had a wild start of the week, following another Japanese intervention. While Japanese officials declined to confirm whether it took place, USDJPY slumped from around 149.70 to around 145.50 in a matter of minutes. Pair recovered later on and is now trading just shy of 149.00 mark
• Rishi Sunak is emerging as a favorite to become next UK Prime Minister after Boris Johnson withdrew from leadership race
• South Korea fired warning shots after a North Korean boat crossed the maritime border. North Korea responded  by firing warning shots from rocket launchers
• RBA Kent said that interest rate in Australia are likely to be raised further in the coming months
• China released delayed Q3 GDP and September’s activity data. Chinese GDP grew at a pace of 3.9% QoQ in Q3 2022 (exp. 3.5%)
• Chinese retail sales increased 2.5% YoY in September (exp. 3.3% YoY), industrial production was 6.3% YoY higher (exp. 4.5% YoY) while urban investments increased 5.9% YoY (exp. 5.9% YoY)
• Chinese exports increased 5.7% YoY in September (exp. 4.1% YoY) while imports were 0.3% YoY higher (exp. 1.0% YoY)
• Japanese manufacturing PMI dropped from 50.8 to 50.7 in October (exp. 51.3)
• Strong US dollar is putting pressure on commodity prices with oil trading around 1% lower. Gold manages to hold flat on the day
• USD and CHF are the best performing major currencies while AUD and NZD lag the most

USDJPY slumped from around 149.70 to around 145.50 in a matter of minutes on a likely Japanese intervention. However, the pair recovered most of the drop since.