• European bourses are pressured, Stoxx 600 -0.7% given the US after-market read across, followed by numerous earnings releases in the pre-market dictating individual movers/sectors.
• US futures are subdued and the NQ underperforms on Meta (-20%) earnings while the ES/RTY fare marginally better going into risk events.
• DXY has seen a bounce as peers pull-back going into BoE/ECB with G10 peers pressured across the board.
• Core debt is contained/choppy while EGB periphery benchmarks lag marginally amid heavy supply
• Crude benchmarks are pressured given the risk sentiment while spot gold/silver pivot familiar levels/DMAs
• Looking ahead US Composite/Services PMI (Final), US Initial Jobless Claims, Factory Orders & ISM Services PMI, BoE & ECB Policy Announcements/Press Conferences. Earnings from Amazon, Eli Lilly, Biogen, ConocoPhillips, Penn.

As of 11:10GMT/06:10EST

LOOKING AHEAD

• US Composite/Services PMI (Final), US Initial Jobless Claims, Factory Orders & ISM Services PMI, BoE & ECB Policy Announcements/Press Conferences. Earnings from Amazon, Eli Lilly, Biogen, ConocoPhillips, Penn.

Click here for the Week Ahead preview

EUROPEAN TRADE

EQUITIES

• European bourses are pressured, Stoxx 600 -0.7% given the US after-market read across, followed by numerous earnings releases in the pre-market dictating individual movers/sectors.
• European sectors are predominantly in the red as Tech lags post-Meta, -20.3% in the pre-market, while Healthcare is hit following Roche's soft guidance.
• US futures are subdued and the NQ underperforms on earnings while the ES/RTY fare marginally better going into risk events.
• Meta Platforms Inc (FB) - Dropped by over 20% in extended trade after Q4 profits, DAUs, MAUs were on the soft side, while its guidance disappointed. Q4 EPS 3.67 (exp. 3.84), Revenue 33.67bln (exp. 33.40bln), DAUs 1.93bln (exp. 1.95bln), MAUs 2.91bln (2.95bln). Sees Q1 rev. USD 27bln-29bln (exp. 30.25bln), with Y/Y growth in Q1 to be impacted by headwinds to both impressions and price growth. Expects continued headwinds from increased competition for people's time and a shift of engagement within apps towards video surfaces which monetise at lower rates than Feed and Stories. On the pricing side, expects growth to be negatively impacted by a few factors: anticipates modestly increasing ad targeting and measurement headwinds from platform and regulatory changes including Apple's (AAPL) iOS changes (exec said iOS headwind was "in the order of USD 10bln" for 2022); macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets; expects foreign currency to be a headwind to Y/Y growth. NOTE: FB had a 4.7% NDX weight and a 2.3% SPX weight at yesterday's close. (Newsquawk)

Click here for a detailed summary.

FX

• Buck bounces, but by and large thanks to reversals in rival currencies on super Thursday.
• Franc lags and Loonie loses traction from WTI.
• Yen heeds further dovish guidance from the BoJ and misses the chance to confirm a technically bullish break.
• Pound and Euro take note of mixed PMIs awaiting guidance via BoE and ECB.
• Lira draws no comfort from Turkish CPI and PPI accelerating further, but pulling up shy of 50% and 100% respectively.
• Brazilian Central Bank raised the Selic Interest Rate by 150bps to 10.75%, as expected. BCB said the decision was unanimous and noted an upcoming reduction in the pace of rate increases, but added that it is appropriate to advance the process of monetary tightening significantly.

Click here for a detailed summary.

Notable Expiries, NY Cut:

• EUR/USD: 1.1135-40 (335M), 1.1150-60 (1.93BN), 1.1175 (520M), 1.1195-00 (860M), 1.1220-25 (810M), 1.1250 (484M), 1.1275 (405M), 1.1290-00 (2.54BN), 1.1310-25 (1.35BN), 1.1330-40 (895M), 1.1360-65 (485M)
• USD/JPY: 112.50 (800M), 113.15-25 (727M), 113.75-85 (535M), 114.25 (360M), 114.50 (463M), 114.90-00 (1.9BN), 115.10-15 (625M), 115.20-25 (875M), 115.70-80 (775M), 116.10 (300M)
• AUD/USD: 0.7020 (266M), 0.7100-10 (1.3BN), 0.7140-50 (1.3BN), 0.7200-10 (880M)
• Click here for the full list.

FIXED INCOME

• Core EU debt futures choppy and indecisive as the clock runs down to BoE and ECB.
• Eurozone periphery bonds somewhat supply-laden.
• Treasuries out of the limelight, but may feature if US data, PMIs and the ISM prove market-moving.

Click here for a detailed summary.

COMMODITIES

• WTI and Brent are pressured in-fitting with the broader equity tone; most recently though, the benchmarks have dropped to fresh lows below yesterday's troughs.
• Oil production ship, Trinity Spirit (can store circa 2mln bbls oil) has reportedly exploded off the coast of Nigeria, via BBG journalists.
• A familiar price backdrop for spot gold/silver, with gold continuing to hold above USD 1800/oz, and is encapsulated by a cluster of DMAs between USD 1795-1815/oz.

Click here for a detailed summary.

NOTABLE EUROPEAN HEADLINES

• UK Ofgem Price Cap Announcement: customers to see a ~54% increase; further measures include enabling Ofgem to update the price cap more frequently than every six-months under exceptional circumstances.
• UK Chancellor Sunak will conduct a press conference on Thursday amid energy bill price hikes with a major announcement to shield Brits from crippling heating bill rises, according to The Sun. Part of the announcement is expected to see poorer households provided council tax rebates, whilst all households are expected to see a GBP 200 reduction in energy bills, according to The Times and FT.
• German governing coalition is planning tax relief in excess of EUR 11bln over the course of the next five years, according to RND

DATA RECAP

• EU Markit Composite Final PMI (Jan) 52.3 vs. Exp. 52.4 (Prev. 52.4); Services Final PMI (Jan) 51.1 vs. Exp. 51.2 (Prev. 51.2)
• UK Markit/CIPS Services PMI Final (Jan) 54.1 vs. Exp. 53.3 (Prev. 53.3); Composite 54.2 vs. Prev. 53.4

US-SPECIFIC HEADLINES

• Fed supervision nominee Raskin said reducing inflation should be top priority for the Fed while sustaining a recovery and noted that bank supervisors must be attentive to risks inside and outside the financial sector, according to Reuters.
• Fed board nominee Cook said the Fed's most important task is tackling inflation and high inflation is a grave threat to a long, sustained expansion, while she is committed to keeping inflation expectations well anchored, according to Reuters.
• Fed board nominee Jefferson said the spike in inflation threatens to heighten expectations of future inflation and the Fed must remain attentive to this risk and ensure inflation declines to levels consistent with its goals, according to Reuters.

Click here for the US Early Morning note.

APAC TRADE

• Asian stocks were mostly negative and took their cues from the selling pressure in US equity futures and Meta slump.
• ASX 200 (-0.1%) was subdued by losses in tech but with downside stemmed by mining stocks and mixed-to-firm data.
• Nikkei 225 (-1.1%) weakened as Japan mulls a quasi-emergency extension for Tokyo and with earnings in focus.
• KOSPI (+1.7%) outperformed and played catch up to this week's gains on return from the Lunar New Year holiday.
• US equity futures were mostly pressured after almost USD 200bln was wiped off from Meta's value which weighed on other social media stocks; E-mini S&P -0.9%, E-mini Nasdaq 100 -2.1%.

NOTABLE APAC HEADLINES

• Japan government is considering extending the COVID-19 quasi emergency for Tokyo, while Tokyo raised healthcare system alert to the highest level, according to NHK.
• New Zealand PM Ardern said the border will reopen in stages from February 27th in which vaccinated New Zealanders from Australia can travel quarantine free and its citizens elsewhere from March 13th, while Australians can travel quarantine free from July and the border will fully reopen to all visitors in October, according to Reuters.

DATA RECAP

• Australian Building Approvals (Dec) 8.2% vs. Exp. -1.0% (Prev. 3.6%, Rev. 2.6%)
• Australian NAB Quarterly Business Confidence (Q4) 19 (Prev. -2)
• Australian Trade Balance (AUD)(Dec) 8.4B (Prev. 9.4B)
• Australian Exports MM (Dec) 1% (Prev. 2%)
• Australian Imports MM (Dec) 5% (Prev. 6%)

GEOPOLITICS

• US President Biden and French President Macron affirmed their support for Ukraine's sovereignty and territorial integrity and they reviewed coordination on both diplomacy and preparations to impose economic costs on Russia if it invades Ukraine, according to the White House.
• Lithuanian President called for the US and Germany to commit more troops to the nation and send a message to Russia regarding the latter's military build up along Ukraine and Belarus, according to FT
• Russian Kremlin says that the US is fuelling tensions in Europe as a result of sending further troops near Russian borders; repeatedly urged the US not to inflame tensions further, via Reuters.
• US-led coalition operation in Northern Syria near Turkey resulted in several civilian casualties, according to residents and rebel sources cited by Reuters.
• US President Biden's administration officials reportedly concluded, late-2021, that Iran's nuclear programme has advanced too much to allow a recreation of the 2015 pacts breakout period, WSJ citing officials.