• APAC stocks traded mostly lower but off worst levels following a mixed lead from the US
• Amazon shares initially slumped around 20% following disappointing earnings, Apple earnings were ultimately better-received
• ECB rate hike was not unanimous, three officials wanted only a 50bp move, and the ECB did not mean to imply slower hiking with the "progress" remark, according to Bloomberg sources.
• BoJ maintained its policy settings and reiterated its dovish stance, whilst the Outlook Report saw Core CPI upgraded across the board
• Looking ahead, highlights include  German Flash GDP, German CPI Prelim, US PCE, BoJ Governor Kuroda
• Earnings from Chevron, Exxon, AbbVie, ColgatePalmolive, LyondellBasell, Airbus, BBVA, Safran, Sanofi, Swiss Re, Volkswagen, and more

US TRADE

• US stocks closed mixed with the SPX and NDX dragged lower by tech, whilst the DJIA and RUT posted mild gains.
• SPX -0.61% at 3,807, NDX -1.88% at 11,191, DJIA +0.61% at 32,033, RUT +0.11% at 1,806.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Amazon.com Inc (AMZN) - Q3 2022 (USD): EPS 0.28 (exp. 0.22), Revenue 127.1bln (exp. 127.45bln); Q4 22 revenue view 140-148bln (exp. 155.150bln). AWS: 20.54bln (exp. 21.191bln). Click here for details. CFO said the Co. is preparing for what could be a slower growth period. Co. is being very careful on its hiring and is seeing weakness in Europe relative to the US. Shares -12.7% after-market.
• Apple Inc (AAPL) Q4 2022 (USD): EPS 1.29 (exp. 1.27), Revenue 90.15bln (exp. 88.90bln) Q4 product sales: iPhone: 42.63bln (exp. 43.21bln) iPad: 7.17bln (exp. 7.94bln). Mac: 11.51bln (exp. 9.36bln). Click here for details. CFO says total company revenue will decline in Q4; sees nearly 10ppt negative Y/Y impact from FX. Shares +0.4% after-market.
• Arch Capital Group (ACGL) is poised to replace Twitter (TWTR) in the S&P 500, according to Bloomberg. (Newswires)
• Intel Corp (INTC) - Q3 2022 (USD): Adj. EPS 0.59 (exp. 0.32), Revenue 15.3bln (exp. 15.25bln). Click here for details. Shares +5.6% after-market.
• T-Mobile US Inc (TMUS) - Q3 2022 (USD): EPS 0.40 (exp. 0.04), Revenue 19.48bln (exp. 19.99bln). Click here for details. Shares +3.5% after-market.
• Elon Musk has closed the deal to take Twitter (TWTR) private for USD 44bln, according to Bloomberg. Elon Musk reportedly plans to take Twitter (TWTR) public again in three-to-five years, according to Bloomberg. Elon Musk reportedly plans on taking on the CEO role at Twitter (TWTR) and reverse lifetime bans on users, according to Bloomberg sources.
• US Treasury Secretary Yellen said she wants to see US growth slow, and added that it is a part of getting inflation under control. She does not see problems at this point in the US treasury markets. She said Q3 GDP data shows ample signs of strength in the US economy, and any changes to Treasuries supplementary leverage ratio (SLR) is a matter for banking regulators to decide.
• Over 300 US groups have warned that rail strikes could shut down the entire freight rail system and have urged President Biden's involvement, according to a letter cited by Reuters.

DATA RECAP

APAC TRADE

EQUITIES

• APAC stocks traded mostly lower but off worst levels following a mixed lead from the US.
• ASX 200 was pressured by its IT sector following the Meta-induced losses seen on Wall Street.
• Nikkei 225 drifted off worst levels heading into the BoJ announcement but saw little action on the return from lunch break after the BoJ maintained its policy unchanged whilst upping its inflation forecasts across the board.
• KOSPI conformed to the broader risk tone, although losses were shallower than peers
• Hang Seng and Shanghai Comp opened lower with the tech sector underperforming after the downbeat sectoral lead from the US, whilst NY Times reported that the Biden administration is weighing further controls on Chinese technology.
• US equity futures were again hit after the bell, this time as Amazon shares initially slumped by around 20% following disappointing earnings, although Apple earnings were ultimately better-received and helped futures climb off worst levels, but the NQ remains the laggard.
• European equity futures were modestly softer overnight with the Euro Stoxx 50 future -0.6% after cash markets closed flat.
• Click here for a detailed summary.

FX

• DXY edged lower throughout the APAC session, dipping further away from its 50 DMA (110.86) and under 110.50 from a 110.65 session peak.
• JPY saw two-way action on the release of the BoJ, with initial weakness seen on the decision to maintain policy and keep a dovish stance, whilst some strength was experienced after CPI forecasts were upgraded, albeit USD/JPY went back to pre-announcement levels shortly after.
• GBP/USD found some overnight support near the 1.1550 level before making its way towards 1.1600 as the Dollar eased.
• EUR/USD was firmer amid the Dollar action and tested parity to the upside but encountered resistance at the level.
• NZD/USD outperformed as the AUD/NZD cross fell under 1.1050 and NZD/USD topped its 50 DMA (0.5867).
• AUD/USD was in the green but gains were capped by the fall in the AUD/NZD cross.
• CNH experienced a modest knee-jerk move lower after the PBoC opted for the weakest Yuan fix since February 2008, but thereafter benefitted from the softer Buck.
• PBoC set USD/CNY mid-point at 7.1698 vs exp. 7.1638 (prev. 7.1570); weakest Yuan fix since Feb 2008
• China, Japan, and India have all sold Treasuries in "recent weeks" to help support their currencies, according to NYT citing bankers.
• Click here for a detailed summary.

FIXED INCOME

• 10yr UST futures maintained the gains from the rally seen in wake of the dovish ECB and mixed US economic data, whilst the US 7yr auction was weak.
• Bund futures held onto their post-ECB gains, although experienced some modest downticks following source reports that the ECB did not mean to imply slowing rate hikes with its “progress” remarks.
• 10yr JGB futures opened modestly firmer as they played catch-up to western counterparts and edged higher, with the corresponding yield falling back below 0.25%.
• Click here for a detailed summary.

COMMODITIES

• Crude futures were on a softer footing despite a softer Dollar and in wake of the IMF cutting China’s 2022 growth outlook to 3.2% from 4.4%.
• Spot gold was modestly firmer but in a tight range, although the yellow metal tested its 21 DMA (1,667.86/oz) to the upside.
• Copper trimmed some of the gains seen yesterday – with IMF’s outlook on China hampering the demand outlook.
• Russian President Putin said Saudi Arabia's MBS supports balancing oil markets. He added the oil price is not that important; predictability and stability is important for oil markets, via Reuters.
• White House Economic Advisor Rouse said President Biden is tapping the SPR responsibly, via Reuters.
• Click here for a detailed summary.

CRYPTO

• Crypto markets were relatively flat with Bitcoin back under USD 20,500 whilst Ethereum held onto a USD 1,500 handle.

NOTABLE HEADLINES

• IMF cuts China's 2022 growth outlook to 3.2% (prev. 4.4%), sees 4.4% growth in 2023 and 4.5% in 2024.
• PBoC injects CNY 98bln via 7-day reverse repos at a maintained rate 2.00% for a daily injection of CNY 88bln
• Japanese PM Kishida announces JPY 29.1tln extra budget for stimulus, via Bloomberg.

DATA RECAP

• Japanese CPI, Overall Tokyo (Oct) 3.5% (Prev. 2.8%)
• Japanese CPI Tokyo Ex fresh food YY (Oct) 3.4% vs. Exp. 3.1% (Prev. 2.8%)
• Japanese Unemployment Rate* (Sep) 2.6% vs. Exp. 2.5% (Prev. 2.5%)
• Japanese Jobs/Applicants Ratio* (Sep) 1.34 vs. Exp. 1.33 (Prev. 1.32)
• Australian PPI QQ (Q3) 1.9% (Prev. 1.4%)
• Australian PPI YY (Q3) 6.4% (Prev. 5.6%)

CENTRAL BANKS

• ECB rate hike was not unanimous, three officials wanted only a 50bp move, and the ECB did not mean to imply slower hiking with "progress" remark, according to Bloomberg sources.
• ECB hawks play down removal of "several" from guidance on further rate hikes while doves say guidance tweak paves the ground for ending hikes in December in case of improved inflation outlook or possibly in March, according to Reuters sources.
• ECB doesn't plan to set QT start date in December discussions, according to Bloomberg sources.
• "Economists at BlackRock are telling financial advisers they expect "pivot language" at the next Fed meeting when they expect Powell to announce a 75bps hike followed by two smaller ones and a pause to get to around 4.75", according to FBN's Gasparino.
• BoJ maintained its policy unchanged as expected with rates at -0.10% and QQE with yield curve control maintained to target 10yr JGB yield at around 0%, via a unanimous vote, whilst also maintaining dovish forward guidance, as expected.
• BoJ Quarterly Outlook Report saw Core CPI upgraded across the board, but the FY23 and FY24 forecasts were below the BoJ’s 2% target, both at 1.6% (upgraded to 1.4% and 1.3% respectively), whilst warning that the risks to prices are skewed to the upside. Real GDP growth was downgraded for FY22 and FY23 but upgraded for FY24. The BoJ said there is a need to watch FX and its impact on the economy. The central bank also said it will make changes to the way it buys ETFs from Dec 1st, the Bank will take now into account the holding cost of each ETFs and select those with the lowest trust fee ratio in making purchases.

GEOPOLITICS

RUSSIA-UKRAINE

• US Pentagon will not rule out nuclear use against non-nuclear threats and defense strategy shuns limits on use once embraced by Biden, according to Bloomberg citing the US National Defense Strategy.
• White House said Russian President Putin's speech was not that new and does not indicate a change in strategic goals.
• US will soon provide additional military assistance to Ukraine, according to the White House spokesperson, US is not seeing any signs of Russia making preparations to use a "dirty bomb", via CNN

OTHER

• Biden administration is weighing further controls on Chinese technology, according to NYT.
• Russian President Putin said Taiwan is part of China and visits by US officials to Taiwan are a provocation.
• France and Germany "agreed that recent American state subsidy plans represent market-distorting measures that aim to convince companies to shift their production to the US... and that is a problem they want the EU to address.", according to Politico sources.
• North Korea fired two short-range ballistic missiles that landed outside of Japan's Exclusive Economic Zone, according to South Korea

EU/UK

NOTABLE EU/UK HEADLINES

• UK PM Sunak reportedly explores tax rises and spending cuts of up to GBP 50bln, according to FT. The Telegraph says that the Chancellor Sunak is drawing up plans to expand the windfall tax on energy companies in an attempt to balance the books.