I. Yesterday's News
International News
1. The Bureau of Economic Analysis (BEA) said the advance estimate for third quarter gross domestic product (GDP) was 3 percent, far stronger than the 2.5 percent median forecast. The GDP deflator rose 2.1 percent, also stronger than the 1.8 percent median forecast.

2. The Catalan parliament on Friday declared independence from Madrid following a secret ballot. Immediately after the vote, Spanish Prime Minister Mariano Rajoy sacked Catalonia's regional government, dissolved the Catalan parliament and called a snap election in the region for Dec. 21. The European Council's president, Donald Tusk, tweeted: "For EU nothing changes. Spain remains our only interlocutor." The US State Department said, "Catalonia is an integral part of Spain, and the United States supports the Spanish government's constitutional measures to keep Spain strong and united." French President Emmanuel Macron has thrown his full support behind fellow European Union leader Mariano Rajoy of Spain over the independence crisis taking place in Catalonia. UK Prime Minister Theresa May's office said Britain “does not and will not” recognize the Catalan regional parliament's declaration of independence

3. Saudi Arabia and Russia declared their support for extending an OPEC-led deal to cut supplies for another nine months, the Organization of the Petroleum Exporting Countries' secretary general said.

4.The Russian central bank cut its key rate to 8.25 percent. Due to its inflation, the central bank would gradually move to "neutral monetary policy" from its current "tight monetary policy".

Domestic News
5. Profits earned by China's industrial firms in September surged 27.7 percent from a year earlier, the statistics bureau said on Friday, hitting a seven-month high lifted by companies in power, liquor, and electronics. As the supply-side structural reform si pushed forward, the quality and efficiency at the supply end has been constantly improving.

6. Zheng Lixin, spokesman for the Ministry of Industry and Information Technology, said on Friday, "We estimate the industrial economy will maintain steady growth in the fourth quarter after better-than-expected growth from January to September, and enterprises' profits will keep growing."

7. China issued 2 billion U.S. dollars worth of dollar-denominated sovereign bonds in the Hong Kong Special Administrative Region (HKSAR) on Thursday, including 1 billion U.S. dollars of five-year bonds and 1 billion U.S. dollars of 10-year bonds, China's Ministry of Finance (MOF) said in Hong Kong on Wednesday. International investors piled into the offering with orders reaching $22 billion. The 5-year bond was priced to yield 2.196 percent, with a coupon rate of 2.125 percent, while 10-year bond at 2.687 percent with a coupon rate of 2.625 percent.

8. The China Banking Regulatory Commission has said it will continue to deeply rectify market problems in the banking sector to prevent individual regional risk from evolving into global systemic risk. CBRC said that it would “uphold fair and equal treatment, and steadily advance banking opening and reform against the background of a new era for Socialism with Chinese Characteristics.”

II. Market Overview
FX
1. Global Market
The euro fell on Friday, marking its biggest weekly loss of the year a day after the European Central Bank decided to prolong its bond purchases and signaled its willingness to stick with an ultra-loose policy stance. The tension between Madrid and Catalonia's secessionists also stoked selling in the single currency. The euro was down 0.5 percent at $1.1595, bringing its weekly loss against the dollar to 1.6 percent for the biggest in 11 months. Against the yen, the common currency was 0.6 percent lower at 131.98 yen after touching its weakest level in nearly two weeks. The index that tracks the dollar against six currencies was up 0.3 percent at 94.919 after hitting a three-month high at 95.150. It gained 1.3 percent for its biggest weekly increase so far this year.

2. Home Market
China's yuan fell to the lowest in October against the dollar in the morning session on Friday, with the official yuan midpoint plunging 185 bps to a three-week low, on the European Central Bank's dovish announcement overnight. But profit-taking on forex settlement after the opening capped losses. The dollar index crossed above previous trading range after the euro fell to a three-month trough, weighing on yuan in the medium term.

Precious Metals
Gold edged higher on Friday, reversing earlier losses after the Catalonian parliament's independence declaration from Spain led investors to seek safety from political upheaval. Yet, the greenback was still trading near a three-month high, limiting gold's gains. Spot gold was up at $1,273.88 an ounce, heading for its second consecutive weekly decline. Gold had earlier dropped to a three-week low of $1,263.35. U.S. gold futures for December delivery settled up $2.20, or 0.2 percent, at $1,271.80 per ounce.

Commodities
1.Crude Oil
Oil prices jumped about 2 percent on Friday, with global benchmark Brent crude rising above $60 per barrel, on support among the world's top producers for extending a deal to rein in output and as the dollar retreated from three-month peaks. Brent futures rose $1.14, or 1.9 percent, to settle at $60.44 a barrel after hitting a session peak of $60.53, the highest since July 2015 and more than 35 percent above 2017 lows touched in June. U.S. West Texas Intermediate crude oil (WTI) ended the session up $1.26, or 2.4 percent, at $53.90 after reaching a session peak of $53.98 a barrel, the highest since early March. For the week, Brent was 4.6 percent higher, notching its third straight weekly gain. U.S. crude rose 4.7 percent for the week.

2.Base Metals
Copper prices declined for a third day on Friday and most other industrial metals also fell after the U.S. dollar hit a three-month high, making metals more expensive for holders of other currencies. Benchmark copper on the London Metal Exchange closed down 2.2 percent at $6,830 a tonne after touching $6,782.50, the lowest since Oct. 11. The metal used in power and construction was set to end the week down 1.8 percent, the first weekly fall in five weeks.

U.S. Treasuries
1. U.S. Bonds
U.S. Treasury yields fell on Friday as Catalonia's parliament declared independence from Spain and as reports emerged that President Donald Trump favored Federal Reserve Governor Jerome Powell to lead the U.S. central bank. In late trading, U.S. two-year note yields fell to 1.595 percent, from Thursday's 1.619 percent. Earlier, two-year yields rose to a nine-year peak of 1.639 percent after the GDP data. U.S. 10-year U.S. Treasury yields were at 2.419 percent , down from 2.454 percent late Thursday. Earlier in the session, 10-year yields hit a new seven-month peak of 2.477 percent. U.S. 30-year bond yields were also down at 2.930 percent , from 2.961 percent on Thursday.

2. Chinese bonds
China's bonds failed to extend the recovery since Thursday afternoon despite the People's Bank of China added 63 days of reverse repo in the open market and set interest rates as expected. Both spot and futures lost momentum. Yields of 10-year Treasury bonds in interbank market tested the key mark of 3.80 percent once again, while Yields of CFFEX's Treasury futures lowered after opening higher.

Stock Market
1. U.S. Equities
Wall Street climbed on Friday as a surge in the tech sector and a rally in Amazon shares helped push the Nasdaq to its best day in nearly a year. The Dow Jones Industrial Average rose 33.33 points, or 0.14 percent, to 23,434.19, the S&P 500 gained 20.67 points, or 0.81 percent, to 2,581.07 and the Nasdaq Composite added 144.49 points, or 2.2 percent, to 6,701.26. For the week, the Dow rose 0.5 percent, the S&P 500 gained 0.2 percent and the Nasdaq advanced 1.1 percent. The S&P has notched gains for seven straight weeks, its longest weekly winning streak in three years.

2. Hong Kong Equities
Hong Kong stocks ended the week on a firmer footing, after an encouraging slew of earnings from U.S. tech giants buoyed Wall Street and the European Central Bank extended its stimulus. The Hang Seng index rose 0.8 percent, to 28,438.85, while the China Enterprises Index gained 1.7 percent, to 11,643.57 points. But for the week, the Hang Seng dipped 0.2 percent, while the HSCE rose 0.7 percent.

3. China Equities
China's stocks rose to an almost 22-month high on Thursday, extending gains to the sixth consecutive day. Major indexes, led by bank and insurance sector, consolidated above the key mark of 3,400, hitting 3,421 during one point. But coal, steel and other resource sectors pulled back. The Shanghai Composite Index settled at 3,416.81, up 9.24 points or 0.27 percent, approaching previous highs at 3,539.18 hit on December 31 2015, bringing its weekly gains to 1.13 percent. The trading volume fell to 212.1 billion yuan from 238.3 billion yuan. The CSI 300 closed up 0.71 percent to 4,021.97.