Dubai's private school enrollment up 12% this academic year

Data from Dubai’s school regulator showed the number of pupils enrolled in private schools in the emirate grew by 39000 (12% y/y) in the 2023/24 academic year, up from an increase of 37000 pupils in the previous academic year. The data suggests that population growth in the emirate has remained strong this year.

Saudi Arabia’s PIF will partner with Hyundai to build a USD 500bn car assembly plant near Jeddah. The plant will produce 50,000 vehicles per year, including electric vehicles. PIF will own 70% of the JV and Hyundai the remaining 30%. The deal was part of 52 MoUs signed between South Korea and the Kingdom at the Saudi-Korean Investment Forum in Riyadh.

Japan's flash composite PMI declined to 49.9 in October from 52.1 in September. The preliminary manufacturing PMI was unchanged from last month at 48.5 but the services sector PMI showed slowing momentum, falling to 51.1 from 53.8 in September. Separately, the Bank of Japan announced an unscheduled bond-buying operation this morning after a sharp rise in sovereign yields. Japan’s 10y government bond yield declined slightly on the news to 0.854%.

Today’s key economic data and events

10:00 UK employment data (Sep) – no forecasts

12:00 Eurozone flash composite PMI (Oct) forecast 47.4

12:30 UK flash composite PMI (Oct) forecast 48.5

17:45 US flash composite PMI (Oct) forecast 50.0

Fixed Income

• 10y US bond yields broke above 5% during London’s trading session yesterday, for the first time since 2007, as the market continued to reprice the “higher for longer” rate scenario on the back of stronger than expected economic data in the US in recent weeks. Concerns about increased Treasury issuance to finance a widening budget deficit also weighed on US government bonds. However, treasuries rallied in the New York session – likely on short covering - with the 10y bond closing down -6bp on the day at 4.85% and the 2y closing down -2.5bp at 5.05%.
• UK and Eurozone bonds also rallied yesterday, with 10y gilts down -5bp to 4.59% and bunds down almost -2bp to 2.87%.

FX

• The US dollar index declined -0.6% yesterday, with EUR, JPY and CHF gaining slightly against the USD. GBP was a touch weaker although it has recovered in early Asian trade this morning.
• Commodity currencies were also stronger against the greenback this morning, with AUD and NZD both up almost 0.6% to 0.6342 and 0.5848 respectively.

Equities

• The US market closed mixed after 10-year Treasury yields pulled back from 5%. The S&P 500 closed down 0.2%, while the Nasdaq gained 0.3% ahead of earnings reports from tech giants Apple, Microsoft, Alphabet, Amazon, and Nvidia this week, which are expected to show earnings growth.

• European stocks also had a mixed session, with the UK’s FTSE closing lower while the DAX eked out a gain and the CAC40 closed 0.5% higher.
• UAE and Saudi Arabia equity indices closed lower on Monday, with the DFMGI down 0.6%. The ADGI closed 0.3% lower and the Tadawul ASI lost 1.9%. 

• Asian stocks are trading lower this morning, except for China where the Shanghai composite is up 0.7% as of this writing, after the PBOC injected net liquidity of CNY522bn through open market operations this morning.

Commodities

• Oil prices fell on Monday as diplomatic efforts to contain the conflict in Israel intensified. Brent closed down -2.3% at USD 90.03/b while WTI fell -3.3% to USD 85.82/b. Both contracts are trading slightly higher this morning.