• European bourses are mixed and yet to make much ground either side of the unchanged mark, amid numerous European updates and the US tech headwind.
• Stateside, the NQ -1.7% is weighed on by GOOGL and MSFT post-earnings and ahead of further large-cap updates including META after-hours.
• DXY is under pressure and back below the 110.00 mark as Cable reclaims 1.16 and EUR/USD finds a foothold above parity.
• Commodities are buoyed across the board given the USD move, with crude residing at the top-end of parameters despite initial pressure.
• UK medium-term fiscal plan has been delayed until November 17th, and has been upgraded to a full Autumn Statement.
• Looking ahead, highlights include US New Home Sales, BoC Announcement. Earnings from Meta, Boeing and more.

As of 11:10BST/06:10ET

LOOKING AHEAD

• US New Home Sales, BoC Announcement
• Earnings from Meta, Boeing and more.
• Click here for the Week Ahead preview.

EUROPEAN TRADE

EQUITIES

• European bourses are mixed and yet to make much ground either side of the unchanged mark, Euro Stoxx 50 -0.2%; amid numerous European updates and the US tech headwind.
• Sectors, feature Tech as the main underperformer as such with the broader picture in-fitting with bourses and mixed overall.
• Stateside, the NQ -1.7% is weighed on by GOOGL and MSFT post-earnings and ahead of further large-cap updates including META after-hours.
• Alphabet Inc (GOOGL) Q3 2022 (USD): EPS 1.06 (exp. 1.25), Revenue 69.1bln (exp. 70.61bln). Google advertising revenue 54.48bln (exp. 56.98bln). Google Cloud revenue USD 6.87bln (exp. 6.61bln). -6.0% in pre-market trade
• Microsoft Corp (MSFT) Q1 2023 (USD): EPS 2.35 (exp. 2.30), Revenue 50.1bln (exp. 49.61bln). Sees Q2 Intelligent Cloud Revenue 21.25-21.55bln (exp. 22.01bln); More Personal Computing Revenue 14.5-14.9bln (exp. 16.92bln); Productivity and Business Processes Revenue 16.6-16.9bln (exp. 17.19bln). -6.0% in pre-market trade
• Texas Instruments Inc (TXN) Q3 2022 (USD): EPS 2.47 (exp. 2.39), Revenue 5.24bln (exp. 5.13bln). Co. expects most of its end markets to decline, potentially with the exception of the automotive market. -5.0% in pre-market trade
• Visa Inc (V) Q4 2022 (USD): Adj. EPS 1.93 (exp. 1.86), Revenue 7.8bln (exp. 7.56bln). Raises dividend 20% to USD 0.45/shr and announces USD 12bln buyback programme. +1.0% in pre-market trade
• CACIT says shipments of smartphones within China fell 21.4% Y/Y to 18.14mln handsets in August
• Click here for more detail.

FX

• Scramble to cover Sterling shorts inflicts more pain for the Buck as Cable tops 1.1600 and DXY sinks below 110.000.
• Euro back above parity vs Greenback, but may be hampered by decent option expiry interest at the strike.
• Kiwi and Aussie make more headway against their US rival through 0.5800 and towards 0.6500 respectively.
• Yen probes 147.00 vs Dollar without thrust of obvious intervention and Loonie eyes 1.3500 ahead of BoC amidst split opinions on 50 or 75 bp rate hike.
• Yuan relieved Buck retreat, stronger than spot PBoC CNY fix and reports of major Chinese bank buying late yesterday.
• PBoC set USD/CNY mid-point at 7.1638 vs exp. 7.1983 (prev. 7.1668)
• Major Chinese state-owned banks sold USD in both onshore and offshore markets in late trade on Tuesday to prop up the weakening yuan, according to Reuters sources
• Click here for more detail.

Notable FX Expiries, NY Cut:

• EUR/USD: 0.9850 (750M), 0.9900 (1.2BN), 0.9910 (562M), 0.9920 (739M), 0.9950 (755M), 1.0000 (1.35BN)
• GBP/USD: 1.1500 (953M)
• Click here for more detail.

FIXED INCOME

• Initial modest upside has waned and been replaced by an incremental negative bias, Gilts are lagging slightly and back below 101.00 post a sub-par 7yr sale and as the UK's fiscal update has been delayed.
• Amidst this, both Bunds and USTs have slipped though latter remain bid overall in a slight role reversal from recent performance; stateside, the curve is slightly flatter.
• Finally, within the periphery BTPs have slipped ahead of a Senate vote but the BTP-Bund spread remains relatively narrow and sub-220bp after yesterday's House performance from Meloni.
• Click here for more detail.

COMMODITIES

• Crude benchmarks are modestly firmer on the session despite initial downbeat performance in wake of readacross from US after-market earnings and on fresh COVID updates in China alongside the below Private Inventory release.
• WTI and Brent Dec’22 contracts reside at the top-end of USD 1.50/bbl parameters though remain capped by USD 86/bbl and USD 94/bbl respectively, buoyed by the USD's pullback.
• Metals are similarly USD driven, spot gold has surpassed the 10- & 21-DMAs with base metals similarly buoyed.
• US Energy Inventory Data (bbls): Crude +4.5mln (exp. +1.0mln), Cushing +0.7mln, Gasoline -2.3mln (exp. -0.8mln), Distillate +0.6mln (exp. -1.1mln).
• Click here for more detail.

NOTABLE EUROPEAN HEADLINES

• UK medium-term fiscal plan has been delayed until November 17th, via BBC; upgraded to a full Autumn Statement. Subsequently confirmed by Chancellor Hunt
• Sunak is to meet Chancellor Hunt on Wednesday to discuss proposals to increase taxes and cut public spending, according to The Times.

NOTABLE EUROPEAN DATA

• EU Money-M3 Annual Growth (Sep) 6.3% vs. Exp. 6.1% (Prev. 6.1%)

NOTABLE US HEADLINES

• Click here for the US Early Morning Note.

GEOPOLITICS

• Japan's Vice Foreign Minister intends to further deepen trilateral cooperation between Japan, South Korea, and the US.
• German foreign ministry, in internal paper, said Cosco stake in German ports disproportionately strengthens China's influence on Germany and in Europe, via Reuters.

APAC TRADE

EQUITIES

• APAC stocks equities traded higher across the board following the positive lead from Wall Street.
• ASX 200 opened firmer following the Aussie budget, but gains were capped by hotter-than-expected Australian CPI data which resulted in a modest uptick in RBA pricing for a 50bps hike at the next meeting.
• Nikkei 225 topped 27,500 with gains led by the pharma and manufacturing sectors.
• KOSPI held onto mild gains whilst chipmaker SK Hynix missed earnings expectations and cut its 2023 capex by over 50% vs 2022.
• Hang Seng and Shanghai Comp opened firmer as the bourses conformed to the gains across global peers, while the PBoC also injected CNY 280bln via reverse repo, with the former eventually outperforming.

NOTABLE APAC HEADLINES

• China's Hanyang district (900k population) in Wuhan city, entered a five-day temporary lockdown until October 30th, according to Chinese press.
• Universal Studios in Beijing temporarily closed amid COVID measures, according to a notice cited by Reuters.
• PBoC injected CNY 280bln via 7-day reverse repos at a maintained rate 2.00% for a daily injection of CNY 278bln.
• BoJ raised the purchase amounts for 10-25yr and 25yr+ JGB maturities in a bid to curb the surge in yields, via Reuters.
• Japan's Top FX Diplomat Kanda reiterated that they will continue to take bold steps against excessive FX moves, and are in close contact with G7 everyday, including on FX and geopolitics.
• Japan Chief Cabinet Secretary says it is important to keep enough FX reserves to support its own currency in case of sharp, excessive market volatility, via Reuters.
• Japanese life insurers' investment plans show a preference to cut holdings of foreign debt, mainly US Treasury bonds, in the second half of the fiscal year ending March amid elevated FX hedging costs, according to Nikkei citing investment plan release.
• Hong Kong Futures Exchange has temporarily suspended the volatility control mechanism for futures products in derivatives market; halt due to external vendor software issues.
• Japan is set to lower electricity bills by around 20% in early 2023 under a new package amid accelerating inflation, according to Kyodo News sources.
• SK Hynix (000660 KS) Q3 2022 (KRW): Revenue 10.98tln (exp. 11.1tln). Operating Profit 1.66tln (exp. 1.87tln). Net Profit 1.1tln (exp. 1.37tln), Q3 average DRAM and NAND selling prices -20%; cuts 2023 investment spending by over 50% vs 2022.
• Australian Treasurer Chalmers expects inflation to peak at the end of the year.

DATA RECAP

• Australian CPI QQ (Q3) 1.8% vs. Exp. 1.6% (Prev. 1.8%); YY (Q3) 7.3% vs. Exp. 7.0% (Prev. 6.1%)
• Australian RBA Trimmed Mean CPI QQ (Q3) 1.8% vs. Exp. 1.5% (Prev. 1.5%); YY (Q3) 6.1% vs. Exp. 5.6% (Prev. 4.9%)
• Australian RBA Weighted Median CPI QQ (Q3) 1.4% vs. Exp. 1.5% (Prev. 1.4%); YY (Q3) 5% vs. Exp. 4.8% (Prev. 4.2%)