Japan

In the view of CBA there are cyclical and structural factors that suggest the peak for the Japanese yen has now passed.

The price of oil is beholden to storage capacity, refinery capacity, supply issues and Middle East tensions but in demand terms the global economy’s shift from West to East is significant for future pricing.

GaveKal observes global deleveraging is creating two-tier economies, which is translating into two-tier markets.

The Conference Board believes average global GDP growth will slow into at least next decade, while a PIMCO survey finds an increasing number of global pessimists, with Australians among them.

MF Global filed for bankruptcy last night due to sovereign debt exposures while markets remain unconvinced about Italy and the BoJ intervenes. Dow down 275.

Plenty of speculation but nothing new out of Europe yet. Wall Street bounced around regardless. Dow up 161.

Danske Bank’s forex team suggests the US dollar is set to break out against the yen, with the BoJ providing a safety net for the trade.

FOREX.com does not believe this month’s rally is sustainable, predicting USD strength and commodity and equity market weakness into year-end.

BArclays Capital has analysed seasonal trends for Otober and notes equities tend to deliver positive performance but the US dollar and commodities find the going tougher.

Markets appear to have further to fall before hitting a bottom, reports Forex.com.