Turkish stocks jumped 2.5 per cent on Monday after the central bank hinted at an interest rate cut to stem capital inflows. With global sentiment cheered by the absence of a Chinese rate hike, markets in Russia, Poland and the Czech Republic also rose. However, Hungarian stocks fell after Magyar Telekom lowered its planned dividend.

Poland’s current account deficit was €1.4bn ($1.9bn) in October, surpassing $1bn euro for a fourth consecutive month. “The data confirms that we’re having an economic rebound which has already started to translate into external imbalances,” said Adam Antoniak of Bank BPH. Continue reading »

Markets interpreted no news as good news on Monday, with the Shanghai Composite rising nearly 3 per cent after a rise in Chinese interest rates – rumoured for the weekend – failed to materialise. Indian stocks were also up, with JSW Steel, the country’s second-biggest private-sector steelmaker, gaining over 8 per cent after Goldman Sachs recommended buying the stock.

With continued concerns over inflation and excess lending, a narrow majority of analysts surveyed by Reuters said that China was likely to raise rates before the end of the year. “Any reluctance to avoid using more potent policy tools [than increased reserve requirements for banks] looks increasingly untenable given the speed with which price pressures are building,” commented RBC’s Brian Jackson. Continue reading »

* GE deepens Brazil link with $1.3bn Wellstream buy

* China sets policy to rein in inflation; stocks gain

* OPEC cheating most since 2004 on production limits

* Chinese IPOs raise three times as much as US listings

* China taps into Argentina’s oil prospects Continue reading »

From the FT:

• Lex on inflation in insouciant China
• Russians face a long march to democracy, says John Lloyd
• Art show proves Qatar is not a cultural desert
• Lucy Kellaway on redundancy memos

From elsewhere:

• Putin sings “Blueberry Hill”, RT
• China’s “ant tribe” struggle for jobs, NYT
• The end of China’s “peaceful rise”?, FP
• Celebrity activists: Lennon vs Bono, WaPo