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Weekend Scan: Emerging markets currencies rise; US markets top off strong week

By NexChange
Capital Markets

October 10

Good morning. US markets topped off a strong week for global markets yesterday with the S&P 500 US equity index up 3.3% over the five-day period following a 0.1% gain on Friday. The upbeat mood is thanks to a better outlook for commodity prices and hopes that central banks will be more accommodating in the short term. Added bullishness has also given a lift to emerging market currencies. The Indonesian rupiah stood out with a 3.3% rise against the U.S. dollar, a gain of 8.5% since the start of the month.

Here is what else you need to know:

Global tax deal targets multinationals. The world’s leading finance ministers agreed on Friday to change the rules on taxing profits, and warned multinational companies they could no longer use their size and international presence to dodge taxes. Under the rules, companies such as Starbucks, Amazon, and Google will find it harder to concentrate their profits in low-tax countries and tax havens — a shift that promises to raise up to $250 billion a year in extra tax revenues, according to the OECD. Financial Times (paywall)
North Korea to hold huge parades for 70th anniversary. The hermit state is holding what is expected to be one of its biggest celebrations ever, to mark the 70th anniversary of the ruling Workers' Party. A cavalcade of armoured vehicles and ballistic missiles is expected to rumble through the capital Pyongyang accompanied by marching troops. BBC
Malaysia’s prime minister fights for his political life. Najib Razak, Malaysia’s embattled prime minister, is fighting for his political life after open warfare broke out within the country’s state institutions over a corruption scandal that has engulfed him. Financial Times (paywall)

India rages after Saudi employer hacks off maid's arm. India's foreign ministry has complained to the Saudi Arabian authorities following an alleged "brutal" attack on a 58-year-old Indian woman in Riyadh. Kasturi Munirathinam's right arm was chopped off, allegedly by her employer, when she tried to escape from their house last week, reports say. BBC

Oil crosses $50, dollar slips on dovish FOMC meeting notes. The Fed's policy-making body showed concerns about weak global growth and low inflation. Gold posted its highest settlement in seven weeks. Forecaster PIRA Energy sees oil headed to $70/barrel by the end of 2016. WBP Online

Alcoa earnings disappoint; outlook for China car production slashed. The aluminum giant posted third quarter earnings after the close of trading on Thursday of 7 cents/share -- well below the estimates of 13 cents. Sales dropped 11% as Alcoa battled softer prices. Alcoa sees China car production dropping to 1%-2% from earlier expectations for growth of 5% to 8%. CNBC,

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