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    NYLON HANDOVER: ECB forming consensus on further cuts

    Reuters reported that among the ECB is a consensus for further rate cuts in December. Whilst not clear if this will replace the idea of further QE, either outcome is likely to weigh on Euro sentiment leading up to ECB and FOMC December meetings.



    OVERNIGHT: 
    - European investor sentiment continues to pick up with the Sentix read beating 13.2 expected, to print 15.1 (up from 11.7 previously) sending the USD Index slightly lower from last week's epic gains. 
    - Industrial production continues to pick up in Greece, albeit at a slower pace, but Eurozone ministers continue to press them to speed up their reforms process in order to release bailout funds. 
    - ECB are expected to form a consensus on further rate cuts (which are already negative). Draghi speaks three times this week so any reference to the consensus and/or further QE will warrant close attention. 




    ASIA TODAY:
    - Australia see's if the 'Malcolm effect' persists with higher business confidence, which saw it jump to a 3-month high after becoming PM last month.
    - Home loans are expected to remain stable as investment limitations from APRA take effect. 
    - China CPI is expected slightly lower at 1.5% vs 1.6% previous but PPI (purchase price index), a leading indicator for consumer inflation has been in structural decline since Feb 2012, and is expected to remain near its lowest level since 2010. 


     


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