UK consumer confidence dropped to -11 in October from -10 in September (a six-year high), as per GfK. The measure of prospects for the broader economy over the next 12 months declined five points to -2. However, the measure of the general economic situation over the last 12 months remained constant at -25.

Japan’s industrial output increased 1.5% m-o-m in September, reversing a 0.9% decline last month, on stronger production of vehicles and electronic components. Production is forecast to jump 4.7% m-o-m in October, as per the Ministry of Economy, Trade and Industry.

As per reports from the Ministry of Economy, Trade and Industry, retail sales in Japan surged 3.1% y-o-y to ¥11trln in September, after gaining 1.1% in August. The reading surpassed the market forecast of a 1.8% rise. Sales from large retailers increased 0.7% to ¥1.5trln. On m-o-m basis, retail sales were up 1.8% after rising 0.9% in the previous month.

Today, the European Central Bank (ECB)’s Executive Board member Benoit Coeure, while speaking at a forum in Beijing, stated that the Euro area was out of the danger zone. However, he emphasised on restructuring the financial sector, bringing about new business models and avoiding protectionism as the key measures to ensure growth. He also took note of the unused capacity in the region.

Today, the Japanese Ministry of Internal Affairs and Communications reported the core consumer price index (CPI) edged up 0.1% m-o-m in September. On y-o-y basis, prices gained 0.7% after increasing 0.8% in August. Overall prices were up 0.3% m-o-m and 1.1% y-o-y. On m-o-m basis, prices in the clothing segment rose 6%, followed by food (+1%), fuel (+0.8%) and furniture (+0.3%), while recreation prices fell 1.6%. On y-o-y basis, fuel prices grew 5.4%. Other sectors that registered gains were transportation (+2.5%), food (+1.7%), clothing (+0.7%) and education (+0.7%). Furniture and housing prices dipped 1.3% and 0.4%, respectively.

The preliminary reading of China’s Purchasing Managers’ Index (PMI) released by HSBC and Markit Economics indicated that factory activity in the country gained further momentum in October. The PMI reading came in at 50.9 in October, up from 50.2 in September. Actual reading surpassed market expectation of 50.4. Growth in output, new orders and export orders accelerated during the month, while the pace of decline in employment slowed down. The index of manufacturing output jumped to 51 from 50.2 in September.

Yesterday, at a conference in London, the Deputy Governor of the Bank of England (BOE) expressed confidence in an economic rebound. He stated the economy was finally on the path of sustainable growth, albeit at a slower pace vis-à-vis historical readings. This could be ascribed to easing of ongoing concerns over lack of credit from the region’s troubled banks and the Eurozone crisis, he said.

Today, the National Bureau of Statistics revealed that China’s house prices increased in 69 of 70 cities surveyed by it compared to last year, with a 20% price rise each in Shenzhen and Guangzhou. Prices in Beijing soared 16% y-o-y, while that in Shanghai surged 17%. On m-o-m basis, new home prices were up in 65 cities, dropped in two and remained unchanged in the remaining three cities.

Based on a survey, Rightmove reported today that UK house prices rebounded in October, driven by a sharp increase in London house prices. Average property asking prices in the UK advanced 2.8% m-o-m to £252,418 after dropping 1.5% in September. On y-o-y basis, prices were up 3.8% compared to 4.5% in the prior month. In London, asking prices jumped 10.2% m-o-m to £544,232, moving up 13.8% from last year.

The National Bureau of Statistics today reported upbeat economic data for China. During Q3 2013, the country’s GDP growth accelerated to 7.8% y-o-y from 7.5% y-o-y in the previous quarter. On q-o-q- basis, the GDP rose 2.2% following an upwardly revised 1.9% in Q2 2013.

Data from the Ministry of Commerce indicated China’s foreign direct investment (FDI) increased 4.9% y-o-y to US$8.8bn in September. In August, FDI had risen merely 0.6%. However, economists were expecting a higher reading for the month. From the beginning of the year till September, China’s FDI stood at US$88.6bn, recording a 6.2% gain during the period. Additionally, the ministry warned of a tough trading environment in the country in coming months due to sluggish demand from emerging markets.

Fitch yesterday put the US credit rating on negative watch due to the government’s failure to increase the debt limit even as the deadline for the same came closer. The rating agency warned that the ‘political brinkmanship’ and ‘reduced financing flexibility’ could elevate the risk of a default. Fitch is expected to complete its review by the first quarter of next year. Meanwhile, Asian giants Japan and China are persuading the US to reach a solution on the ongoing issue. Currently, the two countries hold more than US$2.4bn of US Treasuries.

According to data released by the Ministry of Economy, Trade and Industry today, final reading of Japan’s industrial output for August indicated a 0.9% m-o-m decline compared to an initial reading of 0.7%. In July, production rose 3.4% m-o-m, while shipments and inventory dropped 0.1% and 0.2%, respectively. On y-o-y basis, industrial production decreased 0.4% in August. Capacity utilisation fell 2.1% m-o-m during the month after increasing 3.7% in the prior month.

According to data released by the National Bureau of Statistics today, consumer prices in China rallied 3.1% y-o-y in September after a 2.6% increase the previous month. The reading was higher than the general market expectation of a modest improvement to 2.8%. Food prices inflation was pegged at 6.1% compared to 4.7% in August, whereas non-food price inflation eased to 1.3% from 1.6%. Producer prices declined 1.3% y-o-y in September after a 1.6% drop in the prior month. Trade surplus contracted to US$15.2bn from US$28.5bn in August due to a 2.6% m-o-m decline in exports and a 5.1% jump in imports.

Yesterday, Mario Draghi, Chairman of the European Central Bank (ECB), stated key interest rates could be reduced further if volatility in the money market returns to the levels observed in early summer. The policy rate decision would be conditional upon the inflation outlook, he added.

Today, the Cabinet Office of Japan reported that the core machine orders, a key measure of capital spending, climbed 5.4% m-o-m to ¥819.3bn in August, after a flat reading the previous month. Orders were up 10.3% y-o-y, following a 6.5% rise in July. Separately, activity in Japan’s tertiary industry inched up 0.7% on a seasonally adjusted basis in August after a 0.4% drop in July.

Yesterday, the International Monetary Fund (IMF) cut the global growth forecast for the current year to 2.9% from 3.1% earlier. Also, the 2014 forecast was revised downwards to 3.6% from 3.8%. For the US, growth was lowered to 1.6% from 1.7% in 2013, while that for Europe was upgraded to -0.4% from -0.6%. UK’s growth forecast was revised upward to 1.4% from the earlier estimate of 0.9%.

The Royal Institute of Chartered Surveyors reported that the house price index in the UK climbed to +54 in September, up from a revised +41 in August, surpassing market estimate of a reading of +45.

The World Bank lowered its 2013 and 2014 economic growth forecast for China considering weaker global commodity prices, lower-than-expected growth in exports and rising local government debt. It added that the massive, investment-heavy stimulus program supported by credit expansion had run its course. The World Bank expects China to expand 7.5% this year and 7.7% in 2014 vis-à-vis its estimate of 8.3% and 8%, respectively, in April.

After a two-day review, the Bank of Japan kept its monetary policy unchanged and said that Japan’s economy could withstand the hit of the sales tax hike effective next April. The bank mentioned that the economy is recovering moderately and no further expansion in the stimulus package is required. The bank also upgraded view on capital expenditure and said capital spending was showing signs of a pick-up.

China’s official services Purchasing Managers Index (PMI) rose to a six-month high of 55.4 in September from 53.9 in August, the National Bureau of Statistics (NBS) said today. The sub-index measuring new orders rose to 53.4 from 50.9, while the sub-index for new export orders climbed to 50.5 from 49.6 over the same period.

Vehicle sales in Japan rose 12.4% to 324,315 units in September from 288,479 units a year earlier, according to the data released by the Japan Automobile Dealers Association. Honda posted the largest rise, up 50.5% y-o-y to 39,400 vehicles. It was followed by Toyota, which registered a 12.5% rise in vehicle sales. Honda’s redesigned Fit compact car and Toyota’s hybrid cars registered robust growth. The new hybrid version of the Fit compact car is touted to be the most fuel-efficient car in Japan. The vehicle sales figures do not include sales of mini cars and trucks.

Prime Minister Shinzo Abe announced that the national sales tax would be raised to 8% from 5% next April. Building the case that raising the tax was necessary, Abe said the government has designed a package to minimise the impact of the tax. The sales tax was last increased in 1997.