I. Yesterday’s News
International News

1. U.S. consumer spending increases 0.3 percent in August. Core PCE price index remained unchanged compared with the previous month, and was up 2.0 percent year on year. Personal income rises 0.3 percent.

2.The University of Michigan's consumer sentiment for the U.S. rose to 100.1 in September from 96.2 in August, hitting the highest since March. But the reading was lower than Reuters’ forecast of 100.8.

3. Statistics Canada says the economy grew by 0.2 per cent in July, beating economists’ forecast of a 0.1 percent growth. Canadian producer prices fell 0.5 percent in August, but rose 5.8 percent year on year.

4. Despite Euro Zone’s consumer prices picking up as expected to 2.1 percent in September, from 2 percent a month ago, the rate excluding the cost of food and energy fell to 1.1 percent from 1.2 percent, Eurostat data showed on Friday.

5. Germany’s jobless numbers fell more than expected in September, pushing down the unemployment rate to its lowest level since German reunification in 1990, data showed on Friday. The Federal Labour Office said the seasonally adjusted jobless total fell by 23,000 to 2.303 million. That compared with an expected drop of 9,000 forecast in a Reuters poll. The unemployment rate eased to 5.1 percent from 5.2 percent in August, reflecting the strength of a labour market.

Domestic News

6. President Xi Jinping has vowed to continue to strengthen China’s state-owned enterprises, while at the same time assuring the private sector it has the Communist Party's "unswerving support". "Many of the reform measures nowadays are about how to further develop the private economy – private enterprises should boost their confidence on this point," he said.

7. China’s outbound investment falls for first time on record against the background of open unilateralism by some countries, said Zhang Xingfu, deputy director general of the Department of International Trade and Economic Affairs at the Ministry of Commerce. However, Zhang said China would press on with its “going global” strategy and safeguard the legal rights of Chinese enterprises in foreign countries. China would continue to encourage domestic firms with “good reputation” and “strength” to invest abroad, according to Zhang.

8. The official Purchasing Managers' Index (PMI) is expected to fall to 51.2 in September due to weaker demand, environmental protection, output restrict, and slower production resuming, according to a Reuters poll of economists. Orders were further subdued on worsening trade dispute with Washington, unexpected high base in previous months and lackluster demand growth.

II. Market Overview
FX
1. Global Market

The dollar climbed to a two-week peak versus a currency basket on Friday, as concerns about the Italian budget weighed on the euro while the greenback drew support from an outlook for multiple U.S. interest rate hikes until 2020. The U.S. dollar also rose to a nine-month high against the yen. For the third quarter, the dollar index, a gauge of its value against six major currencies, was on track to post its second consecutive quarterly gain, rising 0.5 percent. For the last six months, the greenback has advanced nearly 6 percent.

2. Home Market

China’s yuan fell to 6.8910 against the dollar in the morning, while the midpoint rates slipped to a 1-1/2-month low. The yuan weakened as the dollar index breached above 95 during the session and on FX buying ahead of the National Day holiday. But the decline was limited, making it hard to lose the ground of 6.9 per dollar.

Precious Metals

Gold inched higher but was on track for its longest monthly losing streak since January 1997 as the U.S. dollar firmed against the euro after Italy's budget jitters threatened the European currency. Bullion is down more than 0.5 percent in September, its sixth straight monthly loss. Spot gold increased 0.9 percent to $1,193.32 per ounce by 1743 GMT, but touched its lowest since Aug. 17 at $1,180.34 earlier in the session. December U.S. gold futures settled up $8.80, or 0.7 percent, at $1,196.20 per ounce.

Commodities
1.Crude Oil

Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production. Brent crude futures rose $1 to settle at $82.72 a barrel. The session high of $82.87 was the contract's highest since Nov. 10, 2014. In the third quarter, Brent has gained about 4 percent. U.S. West Texas Intermediate (WTI) crude futures rose $1.13 to settle at $73.25 a barrel. The session high of $73.73 was the highest since July 11. The contract is up about 5 percent this month but down around 1 percent for the quarter.

2.Base Metals

Zinc prices hit a seven-week high on Friday after stocks in Shanghai slid to the lowest in more than a decade and other metals rallied as speculators canceled bearish positions. Prices broke above technical levels, spurring further bursts of buying on the last trading day of the quarter, traders said. Benchmark zinc on the London Metal Exchange was the biggest gainer, surging 4.2 percent to close at $2,612 a tonne, the strongest since Aug. 9. Zinc shed about 8 percent during the quarter in its third straight quarterly loss. Copper rose 1.2 percent to close at $6,258 a tonne and tin added 0.1 percent to $18,875.

U.S. Treasuries
1. U.S. Bonds

U.S. Treasury yields slipped on Friday as the $15.3 trillion bond sector recorded its worst month since January due to rising government debt supply and sturdy economic data that have enabled the Federal Reserve to keep raising interest rates. Benchmark 10-year Treasury yields were marginally lower at 3.056 percent. On Tuesday, they reached 3.113 percent, the highest since May, Reuters data showed.

2. Chinese bonds

China’s interbank debt market edged down in the morning, with cash bond yields slightly lower and Treasury bonds inching up. Trading was thin ahead of the National Day holiday, while market morale remained bullish.

Stock Market
1. U.S. Equities

Wall Street ended flat on Friday as gains by Intel, real estate companies and utilities offset a drop in Facebook after the social media network disclosed a security breach. The S&P 500 lost 0.5 percent for the week, but for the third quarter it was up 7.2 percent, its best quarterly performance since the fourth quarter of 2013. The Dow Jones Industrial Average ended 0.07 percent higher at 26,458.31 points, while the S&P 500 was essentially unchanged at 2,913.98, down 0.02 point. The Nasdaq Composite added 0.05 percent to 8,046.35.

2. Hong Kong Equities

Hong Kong shares edged higher on Friday as trade war fears eased, but investor sentiment remained cautious over China's economic health. The Hang Seng index rose 0.3 percent, to 27,788.52 while the China Enterprises Index gained 0.72 percent to 11,017.87 points.

3. China Equities

China stocks rose over 1 percent on Friday, hitting a two-month high driven by heavyweights. Mid- and small-caps diverged in subdued trading. The Shanghai Composite Index gained 1.06 percent to 2,821.35 points, up 29.57 points. The index rose 0.85 percent for the week and 3.53 percent for the month, drawing near the highest since August 1 at 2,824.53.