I. Yesterday's News
International News
1. U.S. job growth accelerated in October after hurricane-related disruptions in the prior month, but wages grew at their slowest annual pace in more than 1-1/2 years in a sign that inflation probably will remain benign. Nonfarm payrolls increased by 261,000 last month. That was the largest gain since July 2016 but below economists' expectations for a jump of 310,000 jobs. Data for September was revised to show a gain of 18,000 jobs instead of a decline of 33,000 as previously reported. Average hourly earnings slipped one cent in October, leaving them unchanged in percentage terms, in part due to the return of the lower-paid leisure and hospitality workers. Wages shot up 0.5 percent in September. They were up 2.4 percent on a year-on-year basis last month, the smallest gain since February 2016, after a 2.9 percent advance in the prior month. The unemployment rate fell to 4.1 percent in October, from 4.2 percent in the prior month.

2. The Non-Manufacturing ISM rose 60.1 percent, the highest since August 2015,  which is 0.3 percentage point higher than the September reading of 59.8 percent, reported the Institue for Supply Management on Friday. Orders to U.S. factories rose 1.4 percent in September, following a 1.2 percent advance in August, the Commerce Department reported Friday. That was higher than economists' forecast of a 1.3 percent gain. Private data vendor Markit said its final U.S. October PMI remained unchanged at 55.3, lower than its flash estimate of 55.9. The Commerce Department said the trade gap increased 1.7 percent tо $43.5 billion in September as rising exports of goods and services were offset bу a jump in imports. Goods exports were also thе highest since December 2014, boosted by a lower dollar and strong economic growth. Canada's merchandise trade deficit in September stood at a seasonally adjusted 3.18 billion Canadian dollars, Statistics Canada said Friday. The previous month's trade deficit was revised to C$3.18 billion from the earlier estimate of C$3.41 billion. It also reported a net gain of 35,300 jobs, and 88,700 jobs in full-time positions. The jobless rate had edged up to 6.3 percent, following a 6.2 percent increase in September. The UK service sector expanded at the strongest pace in six months in October, survey data from IHS Markit showed Friday. The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose unexpectedly to 55.6 in October from 53.6 in September. The reading was the highest since April, and also the largest monthly increase since August 2016.

3. Minneapolis Federal Reserve Bank President Neel Kashkari said on Friday that there is no sign of rising inflation and that the U.S. central bank should hold off on raising interest rates until that changes.

4. Euro zone inflation could be higher next year than now projected as energy prices are moving higher, European Central Bank policymaker Ewald Nowotny told Bloomberg television on Friday.  The European Central Bank's decision to continue its bond purchases at least until September may result in a stronger euro if it lures investors into euro zone assets, the ECB's director Benoit Coeure said on Friday.

Domestic News
5. China's state planner issued draft guidelines on Friday for its companies investing overseas, streamlining approval processes for deals while raising oversight for projects in sensitive sectors and countries, the government said. Some administrative hurdles, such as a rule requiring that Chinese companies investing over $300 million overseas seek approval from the state planner, would be reduced or removed under the new rules, the post said. The draft regulations, released to the public to solicit feedback, aim to improve oversight, safeguard national security and increase support, according to the National Development and Reform Commission (NDRC).

6. The People's Bank of China (PBOC), the China Banking Regulatory Commission (CBRC), and the Ministry of Housing and Urban-Rural Development (MHURD) jointly issued the directive against illegal down payment financing. According to the guideline, Chinese authorities have intensified efforts to curb illegal financing for mortgage down payments, strengthen anti-money laundry, and prohibited property developers, real estate agencies from offering illicit downpayment financing for buyers amid a drive to boost stable and healthy development of real estate sector/

7. Activity picked up from an almost two-year low in China's services sector in October but growth remained much weaker than historical trends, a private survey showed on Friday. The findings, along with other private and official business readings earlier in the week, are likely to reinforce views that the world's second-largest economy saw a more subdued start to the fourth quarter.

8. Hong Kong's retail sales in September rose 5.6 percent in value terms, the fastest pace year-on-year in more than 30 months, government data showed on Friday, as increasing number of visitors from the mainland helped boost spending.

II. Market Overview
FX
1. Global Market
The dollar rose broadly on Friday after the release of U.S. factory orders and services sector data that beat estimates, reversing an earlier slide after an underwhelming October jobs report. The dollar index, which measures the greenback against six rival currencies, rose to its highest since Oct. 27, closing in on a nearly four-month peak. The dollar index posted its third straight weekly increase, following its largest weekly percentage gain of the year last week. October was the dollar's best monthly performance since February.

2. Home Market
China's yuan eased against the U.S. dollar on Friday as the official midpoint rose 124 bps to a two-week high. A chain of key events in global market were muted in the market, as investors turned their focus to U.S non-farm payroll data. A strong report is expected to push the dollar up and pull yuan down, traders said.

Precious Metals
Gold fell to a one-week low on Friday as consensus-beating U.S. economic data pushed the dollar higher, outweighing the impact of a lackluster jobs report. Spot gold fell 0.6 percent to $1,267.95 an ounce by 1826 GMT, and was on track for third straight weekly decline. It hit its lowest level since Oct. 27 at $1,265.16. U.S. gold for December delivery settled down 0.7 percent at $1,269.20.

Commodities
1.Crude Oil
Oil prices rose on Friday, with U.S. crude touching a two-year high, strengthening after U.S. rig data suggested drilling in the United States would throttle back. The latest rig data supported the market's view that a global supply glut is receding. U.S. West Texas Intermediate (WTI) crude settled up $1.10 or 2 percent, at $55.64 a barrel, the highest since July 2015. Global benchmark Brent futures settled up $1.45 or 2.4 percent at $62.07 a barrel. Brent has risen around 38 percent since its low in June 2017. Both grades gained more than 3 percent in the week.

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. Treasury yields were little changed on Friday after the government's jobs report for October showed that wages did not pick up in the month, raising some concerns about continuing low inflation, though recent hurricanes were seen as distorting the data. Benchmark 10-year notes gained 2/32 in price on the day to yield 2.343 percent, after falling as low as 2.323 immediately after the data. The yield curve between two-year notes and 10-year notes flattened to 71.1 basis points, the narrowest since late 2007.

2. Chinese bonds
The benchmark Treasury bonds extended losses and the yields of active bonds rebounds to previous highs, despite China's central bank renewed MLF as expected. Cash bonds are expected to remain weak in the near term as monetary policy would be relatively tightening and interest rate hikes by global central banks also weighed on bonds, traders said.

Stock Market
1. U.S. Equities
A surge in shares of heavyweight Apple helped push up major Wall Street indexes on Friday, as investors also assessed a mixed U.S. labor market report. The S&P 500 and Dow industrials recorded their eighth consecutive weeks of gains, while the Nasdaq posted its sixth straight up week, as equities have climbed to record highs. The Dow Jones Industrial Average rose 22.93 points, or 0.1 percent, to 23,539.19, the S&P 500 gained 7.99 points, or 0.31 percent, to 2,587.84 and the Nasdaq Composite added 49.49 points, or 0.74 percent, to 6,764.44.

2. Hong Kong Equities
Hong Kong stocks ended firmer on Friday, as China slowdown worries were offset by the upbeat mood from strength on Wall Street and relief that a centrist was appointed head of the U.S. Federal Reserve. The Hang Seng index rose 0.3 percent, to 28,603.61, while the China Enterprises Index was unchanged at 11,602.40 points. For the week, the Hang Seng was up 0.6 percent but the HSCE lost 0.4 percent.

3. China Equities
China's stocks closed down in a seesaw trade on Friday, dampened by cyclicals and heavyweights. More investors chose to stay on the sidelines, adding pressure for profit-taking. But the Shanghai Composite Index pared some losses late in the session with support at the 60-day moving average at 3,347.22.