• Equity bourses in Europe trade with gains across the board but are off best levels; US futures are faring better
• NZD leads after strong CPI while GBP lags as the BoE pushes back on QT delay reports, DXY firmer but off best
• Yen pares some losses from under 149.00 against the Dollar amidst some unsubstantiated talk of intervention
• Overall fixed complex is pressured, with Gilts lagging though Bunds are in close proximity and below 136.00 post poor 7yr-supply and ahead of ECB speak.
• WTI and Brent December contracts are softer on the session and gave up earlier gains as the DXY creeps higher
• Looking ahead, highlights include US Industrial Production & Capacity Utilisation, Speeches from Fed's Bostic, Kashkari & ECB's Schnabel. Earnings from Goldman Sachs, JNJ, LMT, Netflix, United Airlines, Interactive Brokers.

As of 11:05BST/06:05ET

LOOKING AHEAD

• Looking ahead, highlights include US Industrial Production & Capacity Utilisation, Speeches from Fed's Bostic, Kashkari & ECB's Schnabel. Earnings from Goldman Sachs, JNJ, LMT, Netflix, United Airlines, Interactive Brokers.
• Click here for the Week Ahead preview.

EUROPEAN TRADE

EQUITIES

• Equity bourses in Europe trade with gains across the board but are off best levels.
• Sectors are mostly firmer with no overarching theme; Autos & Parts, Financial Services, and Industrial Goods lead the charge whilst Healthcare, Optimised Personal Care, Energy and Basic Resources sit at the bottom of the pile.
• US equity futures are firmer to a greater magnitude than their European counterparts, with the ES trading on either side of 3,750 whilst the NQ outperforms its peers.
• Intel's (INTC) MobilEye IPO is set to be priced between USD 18-20/shr, according to Bloomberg.
• Renault (RNO FP) and Nissan (7201 JT) are moving towards a "landmark" deal to reshape their alliance, according to Bloomberg; subsequently echoed by the Renault CEO in a Nikkei interview.
• Click here for more detail.

FX

• Kiwi elevated as stronger than expected NZ CPI metrics lift RBNZ rate outlooks, NZD/USD probes 0.5700 before pullback
• Sterling underperforming after making stellar gains on Monday as BoE says FT's QT delay report is inaccurate; Cable sub-1.1300 from just over 1.1400 at one stage
• Loonie lags within a 1.3771-1.3657 range as crude prices sag
• Euro pivots 0.9850 vs Buck as DXY holds around 112.000 and Fib resistance at 0.9858 hampers EUR/USD
• Yen pares some losses from under 149.00 against Dollar amidst some unsubstantiated talk of intervention
• The CBRT's move to raise the required level of bond holdings for FX deposits means that banks must hold an additional TRY 80-100bln of bonds, via Reuters citing bankers.
• BoJ and FSA are to hold 17th cooperation on financial stability, according to reports.
• Click here for more detail.

FIXED INCOME

• Gilts saw an initial bounce at the open on overnight FT reporting around a potential delay to QT; however, this was modest in nature and has since given way to marked pressure following BoE labelling it as "inaccurate".
• The overall complex is pressured, with Gilts lagging though Bunds are in close proximity and below 136.00 post poor 7yr-supply and ahead of ECB speak.
• Stateside, UTS have been following their peers directionally though magnitudes are more contained overall pre-data/Fed speak; yield curve mixed, overall.
• Click here for more detail.

COMMODITIES

• WTI and Brent December contracts are softer on the session and gave up earlier gains as the DXY creeps higher throughout the European morning.
• Spot gold is flat around the USD 1,650/oz mark in a USD 10/oz range – but still under its 10 and 21 DMAs at 1,673.56/oz and 1,668.63/oz.
• LME metals are mostly lower amid the recent rise of the Dollar, whilst Rio Tinto forecasted annual iron ore shipments at the lower end of guidance and sees further downside risks to demand as the global economy slows.
• White House is reportedly planning an oil reserve release announcement this week with a release of another 10mln-15mln bbls in an effort to balance markets and keep prices from climbing, according to Bloomberg. Note, this would come from part of a previously announced 180mln bbl sale announced earlier in the year
• UAE supports Saudi Foreign Ministry's statement regarding the OPEC+ decision and fully stands with Saudi Arabia in its efforts to support energy stability and security, according to the state news agency cited by Reuters.
• Click here for more detail.

NOTABLE EUROPEAN HEADLINES

• BoE is reportedly expected to further delay quantitative tightening until gilt markets calm, according to FT. Subsequently, the BoE labelled this report as "inaccurate".
• UK PM Truss said she wants to accept responsibility and apologise for the mistakes made, while she added that she will lead the Tories into the next general election and is sticking around because she was elected to deliver for the country. PM Truss also stated the most vulnerable will be protected into next winter regarding household energy bills and that they are looking at exactly how they can do that, according to a BBC interview.
• ECB's Villeroy said the UK crisis shows the risk of a vicious loop and that the pensions turmoil underscored the need for non-banks to build liquidity buffers, according to FT.
• European Commission to unveil proposal of further emergency energy measures for coming winter (including joint purchasing & alternative benchmark) at 14:30BST/09:30EDT, according to journalist Keating.

NOTABLE EUROPEAN DATA

• German ZEW Economic Sentiment (Oct) -59.2 vs. Exp. -65.7 (Prev. -61.9); Current Conditions (Oct) -72.2 vs. Exp. -68.0 (Prev. -60.5)
• Current situation is once again assessed as significantly worse than the prior month; probability that GDP will fall in the course of the next six months has increased considerably.

NOTABLE US HEADLINES

• SGH Macro Advisers says it is their understanding that "that five ministries and commissions under China’s governing State Council are jointly studying countermeasures against the latest round of US chips bans against China"

CRYPTO

• EU financial services chief McGuiness called on the US to create new crypto rules and said any regulation imposed on the industry would need to be global for it to work, according to FT.

GEOPOLITICS

RUSSIA-UKRAINE

• US Commerce Department issued a temporary denial order against Ural Airlines for operating in apparent violation of US export controls on Russia, according to Reuters.
• Ukraine President Zelenskiy says there is no space left for negotiations with Russian President Putin, via Reuters.
• Russia's Kremlin, when asked if Russia's nuclear umbrella extends to annexed territories, says all the territories are parts of Russia and their security is provided as with all other Russian territories, via Reuters.

OTHER

• Japanese Chief Cabinet Secretary Matsuno said Japan is to impose additional sanctions against North Korea, according to Reuters.
• Officials revealed that China recruited dozens of former British military pilots to teach Chinese armed forces how to defeat western warplanes and helicopters in a “threat to UK interests”, according to Sky News's Deborah Haynes.

APAC TRADE

EQUITIES

• APAC stocks were positive with the region inspired by gains in global counterparts following the UK Chancellor’s reversal of most of the measures of the 'mini-Budget' and with a report later suggesting a delay of QT by the BoE.
• ASX 200 was led by strength in tech and with the top-weighted financials sector also notching firm gains, while commodity-related stocks were somewhat varied with Rio Tinto choppy after a mixed quarterly activity report.
• Nikkei 225 reclaimed the 27,000 level to the upside, but was off highs with officials continuing to pledge to take action to address excess FX moves.
• Hang Seng and Shanghai Comp. gained although the mainland lagged amid COVID woes after Nanjing halted certain indoor venues due to rising cases, while the postponement of key Chinese data releases including Q3 GDP has led to some speculation that the data could be disappointing, although it was also suggested that the delay could be so that officials can concentrate on the Chinese Communist Party Congress.

NOTABLE APAC HEADLINES

• China's Nanjing halted certain indoor venues including bars, KTVs and gyms, while it also halted dine-in services due to an increase in coronavirus cases.
• RBA Minutes from the October 4th Meeting stated the decision to raise rates by only 25bps was finely balanced with the smaller move warranted by the scale of hikes already delivered and lags in policy. RBA added that the uncertain outlook argued for slower hikes for a time but noted further increases in rates are likely over the period ahead and that rates are not especially high, while the board emphasised the importance of keeping inflation expectations anchored and RBA said monthly CPI data confirmed broad-based pick-up in inflation, rents and utilities are expected to increase.
• RBA Deputy Governor Bullock said the board expects to increase interest rates further over the coming months with the pace and timing to be determined by data, while she added that as the board meets more frequently than most peers, it can achieve a similar tightening with smaller individual rate increases.

DATA RECAP

• New Zealand CPI QQ (Q3) 2.2% vs. Exp. 1.6% (Prev. 1.7%); YY (Q3) 7.2% vs. Exp. 6.6% (Prev. 7.3%)
• RBNZ Sectoral Factor Model Inflation Index (Q3) 5.4% (Prev. 4.8%)