• APAC stocks traded mixed following a similar lead from Wall Street and amid a lack of fresh fundamental drivers overnight
• DXY edged high, USD/JPY tested 146 to the downside, and the Yuan pared back some recent gains
• UK PM Sunak is reconsidering tax rises as an improving economic picture means the PM is examining whether some of the sweeping measures can be watered down, according to The Telegraph
• European equity futures saw modest losses across the board overnight; Euro Stoxx 50 -0.3% after cash markets closed +0.6%.
• Looking ahead, highlights include  German GfK, ECB Announcement and President Lagarde's Press Conference, US Quarterly PCE Advance, GDP Advance and Durable Goods, supply from the US
• Earnings from Amazon, Apple, Intel, Caterpillar, McDonalds, Gilead, AB InBev, Credit Suisse, Deutsche Lufthansa, and more.

US TRADE

• US stocks closed mixed in which the SPX and NDX saw losses led by tech, whilst the DJIA closed flat and the Russell 2k held onto modest strength.
• SPX -0.74% at 3,830, NDX -2.26% at 11,405, DJIA +0.01% at 31,840, RUT +0.46% at 1,804.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Meta Platforms Inc (META) Q3 2022 (USD): EPS 1.64 (exp. 1.88), Revenue 27.71bln (exp. 27.38bln). Facebook DAUs 1.98bln (exp. 1.86bln). Facebook MAUs 2.96bln (exp. 2.97bln). META average price per ad -18% (exp. -15.3%). Co. said it faces near-term challenges on revenue, and sees reality labs op losses in 2023 significantly higher. CFO said revenue from large advertisers remain challenged, while revenue among smaller advertisers remain more resilient. Shares fell 19% after-market.
• Ford Motor Co (F) Q3 2022 (USD): EPS -0.21 (exp. 0.27), Revenue 39.4bln (exp. 36.25bln); Raises FY22 FCF outlook to 9.5-10bln (prev. 5.5-6.5bln); sees FY adj. EBIT around USD 11.5bln (prev. 11.5-12.5bln). Shares fell 0.9% after-market.
• Pfizer (PFE) is reportedly being probed in Italy over allegedly hiding USD 1.2bln in profits, according to Bloomberg.
• Tesla (TSLA) faces US criminal probe over its autopilot technology; US DoJ probe involves co. claims that Tesla cars can drive themselves with its autopilot activated, according to Reuters sources.
• Twitter (TWTR) is set to be delisted from the NYSE effective on Friday, according to a notice. Banks have started to send USD 13bln in cash backing Elon Musk’s takeover of Twitter (TWTR), according to WSJ sources. Elon Musk told Twitter (TWTR) employees that he does not plan to cut 75% of jobs, according to Bloomberg.

DATA RECAP

• Atlanta Fed GDPNow Model (Q3): 3.1% (prev. 2.9%)

APAC TRADE

EQUITIES

• APAC stocks traded mixed following a similar lead from Wall Street and amid a lack of fresh fundamental drivers overnight.
• ASX 200 was supported by gains across its commodities-related sectors, whilst financials lagged after ANZ Bank shed over 3% post-earnings.
• Nikkei 225 was in the red as exporters were pressured by the recent firming in the Japanese currency against the Dollar.
• KOSPI saw gains across its energy, industrial, and IT names, whilst Samsung Electronics saw choppy trade after earnings before stabilising in the green.
• Hang Seng outperformed and the Hang Seng Tech index also surged following the recent selling - the gains were driven by Alibaba and JD.com.
• Shanghai Comp was firmer at the open but gains fizzled out, whilst the PBoC injected another CNY +200bln via 7-day reverse repo for a third straight session.
• US equity futures saw two-way action after the bell as Meta initially rose some 8% following a revenue beat, but then fell as much as 20% as the group flagged near-term challenges to revenue. At the re-open, futures were flat/slightly lower but have since moved into modest positive territory across the board.
• European equity futures saw modest losses across the board overnight; with the Euro Stoxx 50 -0.3% after cash markets closed +0.6%.
• Click here for a detailed summary.

FX

• DXY edged higher overnight but remained under 110.00 after falling from its 111.13 peak yesterday.
• USD/JPY breached 146.00 to the downside after probing the level throughout the first half of the APAC session.
• GBP/USD was the early outperformer with The Telegraph reporting that UK PM Sunak is reconsidering tax rises as an improving economic picture means the PM is examining whether some of the sweeping measures can be watered down.
• EUR/USD held onto gains above parity as the DXY remained under 110.00 and with traders looking ahead to Thursday's ECB announcement.
• AUD/USD was relatively flat and among the underperformers despite Westpac's Evans now forecasting a 50bp rate hike from the RBA next week (vs market expectations for 25bps hike).
• NZD/USD failed to top the 0.5850 level but AUD/NZD stayed above 1.1100.
• CNH was on a weaker footing with USD/CNH retracing some recent downside, whilst PBoC’s Yuan fix was largely in-line with expectations.
• PBoC set USD/CNY mid-point at 7.1570 vs exp. 7.1573 (prev. 7.1638)
• South African Finance Minister is confident it can come up with Eskom debt transfer plan by the February budget, via Reuters.
• Click here for a detailed summary.

FIXED INCOME

• 10yr UST futures resumed trade flat after Treasuries bull-flattened on Wednesday with weak tech earnings and a dovish BoC supporting the complex.
• Bund futures were similarly flat awaiting the latest ECB policy decision on Thursday.
• 10yr JGB futures were uneventful with the corresponding yield around 0.25%.
• Click here for a detailed summary.

COMMODITIES

• Crude futures consolidated following yesterday's Dollar-driven upside, with news flow for the complex light overnight, with WTI Dec and Brent Jan around USD 88/bbl and USD 94/bbl respectively.
• Biden admin reportedly reviewing plans for a Russian oil price cap, according to Bloomberg citing sources. Under earlier plans, a price cap in the range of USD 40-60/bbl was mulled, but sources suggested discussions involve a cap at the higher end of that range and above. No decision is expected before the US mid-term elections.
• Spot gold was flat and traded above USD 1,650/oz, with the yellow metal on either side of its 21 DMA (1,667.96/oz).
• Copper consolidated following the prior day’s Dollar-induced gains.
• Click here for a detailed summary.

CRYPTO

• Crypto markets were flat/mixed with Bitcoin staying above USD 20,500, whilst Ethereum held onto a USD 1,500-handle.

NOTABLE HEADLINES

• Samsung Electronics (005380 KS) - Q3 2022 (KRW): Revenue 76.8tln (Co. exp. 76tln), Net profit 9.4tln (exp. 7.9tln), expects H2 2023 recovery in memory chips focused on servers and mobile; expect tech and memory chip demand to remain weak in Q4. Q3 Consolidated Net 9.14tln (exp. 9.43tln). Co. expects tech and memory chip demand to remain weak in Q4. Q4 demand for smartphones and wearables is forecast to increase Q/Q; 2023 demand for smartphones and wearables is expected to grow. (Newswires)
• Japan is eyeing in excess of JPY 29tln in government spending on stimulus, according to NHK.
• PBoC injected CNY 240bln via 7-day reverse repos at a maintained rate 2.00% for a daily injection of CNY 238bln.

DATA RECAP

• South Korean GDP Growth YY Advance (Q3) 3.1% vs. Exp. 2.8% (Prev. 2.9%)
• South Korean GDP Growth QQ Advance (Q3) 0.3% vs. Exp. 0.1% (Prev. 0.7%)
• Australian Import Prices (Q3) 3.0% (Prev. 4.3%)
• Australian Export Prices (Q3) -3.6% (Prev. 10.1%)

GEOPOLITICS

RUSSIA-UKRAINE

• US has accelerated the fielding of a more accurate version of its mainstay nuclear bomb to NATO bases in Europe, according to a US diplomatic cable and two people familiar with the issue, via Politico

OTHER

• US Secretary of State Blinken said it has taken note of Saudi Arabia's aid to Ukraine and UN vote against Russia's annexations and added that the actions do not compensate for OPEC+ decision to cut production, via Reuters.
• Chinese President Xi said, "the Chinese and American peoples have many things in common, and can become good friends and partners for mutually beneficial cooperation.", according to CCTV

CENTRAL BANKS

• RBNZ Governor Orr said New Zealand is relatively well positioned, but inflation is still too high in an absolute sense; has eyes firmly focused on meeting inflation target, via Reuters.
• Westpac's Evans is forecasting a 50bp rate hike from the RBA next week (vs market expectations for 25bps hike).
• Banxico Deputy Governor Esquivel said the central bank should begin thinking about ending the rate-hiking cycle and what ceiling will be compatible with a restrictive enough level; cautions against hiking monetary policy rate to excessively restrictive level amid weak economy, via Reuters.
• Brazilian Selic Interest Rate 13.75% vs. Exp. 13.75% (Prev. 13.75%). BCB will not hesitate to resume the tightening cycle if the disinflationary process does not proceed as expected; it will stay vigilant, and policy can be adjusted, via Reuters and Bloomberg.
• International Capital Market Association (ICMA) body urged the ECB to ease the collateral shortage in repo markets, warning of "rising dysfunction" in money markets, according to FT citing letter and ICMA members.

EU/UK

NOTABLE EU/UK HEADLINES

• UK PM Sunak is reconsidering tax rises as an improving economic picture means the PM is examining whether some of the sweeping measures can be watered down, according to The Telegraph.
• German government gas relief payment for consumers to cost EUR 12bln and to be paid out in December this year; gas relief payment to apply for consumers below annual consumption of 1.5mln KWh, according to a draft cited by Reuters.