World Bank cut its growth forecast for developing East Asia to 6.9% for 2014 and 2015 from 7.1% (forecasted in April).
US unemployment slipped to its 6-year low of 5.9% in September from 6.1% in August. Meanwhile, US non-farm payrolls increased by 248,000 in September, exceeding the market consensus of 210,000. As a result, the Dollar was close to its 4-year high.
The US Fed in its FOMC minutes (September 16-17) said that the current stance is appropriate amid concerns of global growth and the possibility of a stronger Dollar weighing on the US economy.
European Central Bank (ECB) maintained status quo with key policy rate unchanged at 0.05%. It unveiled the details of its purchases of asset-backed securities and covered bonds, scheduled to commence from mid-October.
China’s non-manufacturing PMI contracted to 54.0 in September vs. prior print of 54.4 in August.
Bank of Japan (BoJ) kept monetary policy unchanged, maintaining its pledge to expand the monetary base at an annual pace of 60-70 trillion Yen.
International Monetary Fund (IMF) cut its world growth forecast to 3.8% YoY for next year (2015) vs. its July forecast of 4%.
Japan’s current account remained in surplus for the second consecutive month, at JPY 130.8 bn.
On the geopolitical front, reports suggest that IS-rebels aim to capture the town of Kobane (on Turkey-Syria border). Meanwhile, US continued airstrikes to try and prevent the same.
Bank of England (BoE) maintained status quo, keeping the key policy rate unchanged at 0.5% and asset purchase program at GBP 375 bn.
Ebola virus continues to spread globally, and effective controls have yet to be found.