I. Yesterday's News
International News
1. President Donald Trump on Thursday tapped Fed Governor Jerome Powell to become head of the U.S. central bank, breaking with precedent by denying Janet Yellen a second term but signaling a continuation of her cautious monetary policies. "Monetary policy decisions matter for American families and communities. I strongly share that sense of mission and am committed to making decisions with objectivity and based on the best available evidence," Powell said in brief remarks after Trump's announcement. His nomination now goes to the Republican-controlled Senate for confirmation. There was little apparent market reaction to Powell's nomination, which had been expected.

2. U.S. House of Representatives Republicans unveiled long-delayed legislation on Thursday to deliver deep tax cuts that President Donald Trump has promised, setting off a frantic race in Congress to give him his first major legislative victory. The 429-page bill, representing what would be the largest overhaul of the U.S. tax system since the 1980s, called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on individuals and families and ending certain tax breaks for companies and individuals. Congressional passage of this legislation that would affect nearly every U.S. company and family was far from certain, and some business groups quickly came out against it. Contentious provisions will test Republicans, who control the White House and both chambers of Congress but have been unable to deliver any major legislative achievements for Trump since the businessman-turned-politician became president in January.

3. The Bank of England raised interest rates for the first time in more than 10 years on Thursday but said it expected only "very gradual" further increases as Britain prepares to leave the European Union, sending sterling down sharply. The BoE's nine rate-setters voted 7-2 to increase the Bank Rate to 0.50 percent from 0.25 percent, reversing an emergency cut made in August 2016 after the Brexit vote. It was the first BoE hike since 2007. However, investors focused on the BoE's wariness about its next moves, pushing down sterling by its most in five months against a basket of other major currencies . The five-year gilt yield fell by the most since the day after the BoE cut rates last year.

4. U.S. worker productivity increased at its fastest pace in three years in the third quarter but the trend remained moderate, suggesting that a recent acceleration in economic growth was unlikely to be sustained. Other data on Thursday showed the number of people filing for unemployment benefits fell to a near 44-1/2-year low last week, offering further evidence that the labor market was tightening despite hurricane-related disruptions in September. The rise outpaced economists' expectations for a 2.4 percent pace and was flagged in last week's third-quarter gross domestic product report, which showed the economy growing at a 3.0 percent rate during that period. Productivity increased at a 1.5 percent rate compared to the third quarter of 2016. In a second report on Thursday, the Labor Department said initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 229,000 for the week ended Oct. 28, the Labor Department said. That was not too far from 223,000, a 44-1/2-year low touched in mid-October.

Domestic News
5. The enactment of China's new foreign investment law is progressing well, as the draft has been submitted for further discussion by the central government, the Ministry of Commerce announced on Thursday. Gao Feng, spokesman for the ministry, said the ministry will collaborate with the Legislative Affairs Office of the State Council to speed up the lawmaking pace in the next stage. He said China's consumer market will keep stable and relatively rapid growth in the fourth quarter as household revenue increases, the base of consumption steadies, he said.

6. The State Council, China's cabinet, has started a nationwide overhaul of measures to ease the corporate burden. The inspection was divided into three phases -- self-inspection, field supervision and rectification -- at a joint inter-ministerial meeting of the State Council committee for reducing enterprise costs.

7. China will raise the retail prices of gasoline and diesel starting on 24:00 Nov 2, the country's top economic planner announced. Under the current pricing mechanism, and international crude oil prices changes, the retail prices of gasoline and diesel will both rise by 150 yuan per ton, according to the National Development and Reform Commission (NDRC).

8. Chinese lawmakers have called for high awareness and prompt action to control solid waste which they believed to be a very serious problem, said the Standing Committee of the National People's Congress (NPC).

9. Wang Bingnan, Vice Minister of the Ministry of Commerce, said that the Chinese government attaches great importance to import work and will hold the first China International Import Expo next year. China will lower tariffs and step up bank financing to support more imports and improve import structure, he said.

10. The State Council, China's cabinet, announced the appointment and removal of three senior officials Thursday. Xiao Jie was appointed deputy secretary-general of the State Council, and Chen Xiaodong was appointed assistant foreign minister. Du Yongsheng was removed from his post as deputy head of the National Administration for the Protection of State Secrets.

II. Market Overview
FX
1. Global Market
The dollar fell to its lowest in a week against a basket of major currencies on Thursday after Republicans in the U.S. House of Representatives released proposals to overhaul the tax code. The greenback recovered some of its losses in afternoon U.S. trading, but remained lower and had minimal reaction to the announcement Federal Reserve Governor Jerome Powell was President Donald Trump's pick to be the next chair of the Fed.
The dollar edged up against the yen and the dollar index, which tracks the currency against six major rivals, during Powell's comments, but ultimately surrendered those gains and remained in the red for the day. The dollar index fell to 94.411, its lowest since Oct. 26. It had earlier risen, almost touching its highest since mid-July. The euro hit its highest in a week against the dollar, rising to $1.1687.
The dollar also hit a session low against the Japanese yen after the tax cut proposal's release, falling to 113.55 yen. The greenback posted major gains against the British pound. Sterling had its largest one-day fall against the dollar since June after the Bank of England raised interest rates for the first time in more than a decade but said it sees only gradual rises ahead. Against the euro, sterling fell almost 2 percent for its biggest one-day loss since October 2016.

2. Home Market
China's yuan pared gains against the U.S. dollar after following the official midpoint to a half-month high, as the dollar index lost ground and demand for forex settlement was high at early-month. Profit-taking by some institutional investors picked up yuan's recovery; the exit of conventional intervention kept elasticity of exchange rates at high, but raised the question of how to reasonably avoid risk.

Precious Metals
Gold prices pared gains after touching a two-week high on Thursday, after Republicans in the U.S. House of Representatives unveiled legislation to overhaul the U.S. tax system. Investors also focused their attention on the nomination of a new U.S. Federal Reserve chair, who could influence the pace of future interest rate increases. Spot gold was up at $1,275.61 an ounce from $1,274.01. U.S. gold futures settled up $0.80, or 0.1 percent, at $1,278.10 per ounce.

Commodities
1.Crude Oil
Oil prices edged up on Thursday, steadying near two-year highs as the outlook remained upbeat as OPEC-led supply cuts have tightened the market and drained inventories. Brent crude settled up 13 cents, or 0.2 percent, at $60.62 per barrel. U.S. crude ended 24 cents, or 0.4 percent, higher at $54.54, almost 30 percent above its 2017-lows in June.

2.Base Metals
Traders cashed in gains in nickel, zinc and aluminium on Thursday after the metals hit multi-year highs the day before, with nickel posting its biggest two-day jump in more than three years. London Metal Exchange nickel, which hit its highest in more than two years at $13,010 a tonne on Wednesday, closed down 1.4 percent at $12,605. Prices are still up more than 8 percent this week. Zinc ended the day down 0.6 percent at $3,258 a tonne after rising to its highest in a decade on Wednesday to $3,326. LME copper finished little changed at $6,929 a tonne after Wednesday's 1.3 percent gain.

U.S. Treasuries
1. U.S. Bonds
U.S. Treasuries were little changed on Thursday after President Donald Trump nominated Federal Reserve Governor Jerome Powell to head the Federal Reserve, as expected, and prices ended the day higher. Benchmark 10-year notes gained 7/32 in price to yield 2.35 percent, down from 2.38 percent on Wednesday. The yields are down from 2.48 percent last Friday. The yield curve between five-year notes and 30-year bonds flattened to as low as 82.1 basis points, the lowest level since late 2007.

2. Chinese bonds
The balance of China's bonds under custody rose a net 656.1 billion to 49.6467 trillion at the end of October, growing at a slower pace than the previous months due to the National Day holiday, data from China Central Depository & Clearing Co.,Ltd showed. Holding of commercial banks increased at the largest pace, adding 570.5 billion in last month. This figure is over 100 billion high over September.

Stock Market
1. U.S. Equities
Wall Street's Dow industrials climbed to a record high on Thursday while losses in Facebook kept the S&P 500 and the Nasdaq in check as investors assessed the long-awaited tax cut plan unveiled by U.S. President Donald Trump's fellow Republicans. The Dow Jones Industrial Average rose 81.25 points, or 0.35 percent, to 23,516.26, the S&P 500 gained 0.49 points, or 0.02 percent, to 2,579.85 and the Nasdaq Composite dropped 1.59 points, or 0.02 percent, to 6,714.94.

2. Hong Kong Equities
Hong Kong stocks slipped on Thursday, echoing nervousness in global markets as investors waited for key policy events in the United States and what could be the Bank of England's first hike in more than 10 years. Investors also weigh the impact of a possible policy change that might change the share structure of "H-shares", or mainland companies listed in Hong Kong. Both the Hang Seng index and the China Enterprises Index fell 0.3 percent, to 28,518.64 and 11,598.36 points, respectively.

3. China Equities
China's stocks closed down on Thursday with cross-the-board decline in individual stocks. Lack of support after crossing over 3,400 and tighter liquidity kept market in check. The Shanghai Composite Index is expected to remain rangebound between 3.350 to 3,400.