Key Takeaways
- ECB's Luis de Guindos affirmed the central bank's conviction that current interest rates are "correct," signaling a stable monetary policy stance despite acknowledging low economic growth.
- Norway's October CPI showed headline inflation easing to 3.3% year-over-year, but underlying inflation remained elevated at 3.4%, exceeding market estimates and suggesting persistent price pressures.
- Sweden's September economic data presented a mixed picture, with a significant 2.6% month-over-month drop in industrial orders contrasting with robust 13.5% year-over-year growth in industrial production value.
- China's Foreign Ministry strongly urged Japan to acknowledge its historical responsibilities regarding the Taiwan question, while also criticizing media for "deliberately hyping" a Chinese consul's related post.
The European Central Bank (ECB) remains confident in its current monetary policy, with Vice-President Luis de Guindos stating a firm belief that the level of interest rates is "correct." De Guindos noted that while economic growth is positive, it remains "very low." He added that services and wages are moving in the "right direction," and inflation is expected to be "very close to target," advocating for a "very prudent and cautious approach" to policy.
In Nordic economic news, Norway's October Consumer Price Index (CPI) revealed a year-over-year inflation rate of 3.3%, a decrease from the previous 3.6% but still above the estimated 3.0%. More notably, underlying CPI, which excludes volatile items, registered 3.4% year-over-year, surpassing both the previous 3.0% and estimates of 3.0%, indicating persistent core inflationary pressures. Producer Price Index (PPI) data for Norway showed a month-over-month increase of 0.1% but a significant year-over-year decline of -6.9%, deepening from the prior -2.8%.
Sweden's September economic indicators presented a mixed performance. Industrial orders saw a month-over-month decrease of -2.6%, a sharp reversal from the previous 7.2% gain. However, industrial orders on a non-seasonally adjusted (NSA) year-over-year basis remained positive at 7.2%. Private sector production grew 0.9% month-over-month and 4.7% year-over-year, accelerating from the prior 3.7%. The value of industrial production surged 13.5% year-over-year, while service production value slowed to 1.9% year-over-year. Household consumption showed modest growth of 0.3% month-over-month and a stronger 3.3% year-over-year.
On the geopolitical front, China's Foreign Ministry issued a strong statement urging Japan to "take a hard look at historical responsibilities on the Taiwan question." The ministry also criticized certain media outlets for "wrongfully" and "deliberately hyping" a Chinese consul's post regarding the Japanese Prime Minister. Separately, China's Commerce Ministry announced adjustments to its management catalogue of drug-related precursor chemicals, indicating ongoing regulatory updates in the sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.