Markets focus on the positives

In a news-filled week, the prices of most industrial commodities and oil performed strongly. President Trump nominated Jerome Powell to be the next Fed Chair, but there are some concerns about whether he is sufficiently qualified for the job. Meanwhile, the statement following the latest FOMC meeting appeared to be consistent with our expectation of a rate hike in December. Elsewhere, China’s October manufacturing PMI readings were soft, suggesting earlier policy tightening and capacity cuts in heavy industry are starting to bite. Looking ahead, China’s October trade data (Wednesday) will tell us more about commodity demand last month. We think slower growth in infrastructure spending will weigh on imports. Otherwise, it is a relatively quiet week on the data front.