• European bourses are pressured across the board, Euro Stoxx 50 -0.9%, deriving direction from downbeat APAC and US after-market trade.
• Stateside, the NQ -1.3% is the clear underperformer amid pressure from after-market earnings; AMZN -13%
• DXY extends recovery gains to probe 111.000 and this time thanks in large part to the Yen; EUR cushioned by inflation prints
• EGBs are under broad pressure as ECB speakers come out in full hawkish force alongside hotter-than-expected regional CPI data
• Commodity complex is once again being dictated by broader market action amid relatively light-specific newsflow
• Looking ahead, highlights include German CPI Prelim., US PCE. Earnings from Chevron, Exxon, AbbVie, Colgate-Palmolive, LyondellBasell

As of 11:05BST/06:05ET

LOOKING AHEAD

• German CPI Prelim., US PCE. Earnings from Chevron, Exxon, AbbVie, Colgate-Palmolive, LyondellBasell.
• Click here for the Week Ahead preview.

EUROPEAN TRADE

EQUITIES

• European bourses are pressured across the board, Euro Stoxx 50 -0.9%, deriving direction from downbeat APAC and US after-market trade.
• Within the region, sectors are predominantly in the red with Tech dented amid US after-market updates while Basic Resources slips after Glencore's downbeat production report.
• Stateside, the NQ -1.3% is the clear underperformer amid pressure from the below after-market earnings; ES -0.8%, pressured though magnitudes a touch more contained ahead of key US price data.
• 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. -13% in the pre-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. +0.5% in the pre-market
• Intel Corp (INTC) - Q3 2022 (USD): Adj. EPS 0.59 (exp. 0.32), Revenue 15.3bln (exp. 15.25bln). Click here for details. +4.5% in the pre-market
• 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.
• Click here for more detail.

FX

• DXY extends recovery gains to probe 111.000 and this time thanks in large part to the Yen as BoJ sticks to ultra-accommodation, dovish guidance and passive role in terms of intervention; USD/JPY eyes 148.00 from around 146.00 at one stage and near 145.00 yesterday
• Aussie and Kiwi rattled by risk aversion and their US rival's revival, AUD/USD just over 0.6400 and NZD/USD under 0.5800
• Euro cushioned by strong inflation data and some hawkish ECB rhetoric, but capped at parity vs the Buck and more hefty option expiries
• Yuan undermined by a weak PBoC fix and losses in Chinese tech stocks on reports of further US controls
• PBoC set USD/CNY mid-point at 7.1698 vs exp. 7.1638 (prev. 7.1570); weakest Yuan fix since Feb 2008.
• China's CBIRC says those who sell the Yuan now will regret it, via Bloomberg citing a report. China has a resilient economy and its positive long-term trend will continue.
• Click here for more detail.

Notable FX Expiries, NY Cut:

• EUR/USD: 0.9800 (892M), 0.9900 (635M), 0.9975 (817M), 1.0000 (1.9BN), 1.0100 (1.0BN), 1.0200 (912M)
• EUR/JPY: 146.50 (1.0BN)
• Click here for more detail.

FIXED INCOME

• EGBs are under broad pressure as ECB speakers come out in full hawkish force alongside hotter than expected regional CPI data, ex-Spain.
• Specifically, the Bund has been pushed below 139.00 and the accompanying 10yr yield to above 2.10% while BTPs are similarly pressured though the spread vs. Germany has narrowed to around 200bps.
• Gilts are bucking the trend somewhat and retain a slight positive bias, with attention turning to next week's BoE where the magnitude is centered around 75bp vs 100bp+ in recent weeks.
• Stateside, USTs are in-fitting with EGBs ahead of their own price metrics via PCE Price Index this afternoon, with yields elevated as such though the curve is a touch flatter.
• Click here for more detail.

COMMODITIES

• The complex looks set to end the week with another session of relatively limited explicit newsflow and as such participants focus remains on broader macro developments and pricing.
• Currently, the crude benchmarks are pressured by around 1% or just shy of USD 1.00/bbl on the session though are still set to end the week with upside of just over USD 2.00/bbl, at the time of writing.
• Moving to metals, the complex is once again under USD-induced pressure with precious metals unable to derive any substantial allure from their traditional haven status; base metals hit on sentiment, particularly APAC weakness in China.
• Click here for more detail.

CENTRAL BANKS

• 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.
• BoJ Governor Kuroda (post-meeting press conference) says must be vigilant to the impact of FX moves; CPI to undershoot 2% from next year; will not hesitate to ease monpol. if needed. Click here for full details.
• BoJ Quarterly Schedule of Outright Purchases of Japanese Government Bonds; to increase frequency of purchases in November.
• ECB's Simkus says QT discussion in December should be about start dates and amounts, via Reuters.
• ECB's Villeroy says the ECB will bring inflation back to 2% in 2-3 years; no obligation to raise rates by 75bps at the December meeting.
• ECB's Kazmir says rates will rise in December and in early 2023, crossing neutral like a 'runaway train', must get rates into restrictive territory. A risk that Eurozone inflation will remain higher for longer, and remains above target. Risk of a recession in the Eurozone are growing.
• ECB's Muller says they must decide on how to gradually cut bond holdings, via Bloomberg; rates will continue to increase in the near term, they are still now and are not restrictive.
• ECB SPF, available here.

NOTABLE EUROPEAN 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.

NOTABLE EUROPEAN DATA

• German North Rhine-Westphalia State CPI YY (Oct) 11.0% (Prev. 10.1%); MM (Oct) 1.2% (Prev. 1.8%)
• Italian CPI (EU Norm) Prelim. YY (Oct) 12.8% vs. Exp. 9.9% (Prev. 9.4%); MM (Oct) 4.0% vs. Exp. 1.4% (Prev. 1.6%)
• Spanish HICP Flash YY (Oct) 7.3% vs. Exp. 8.1% (Prev. 9.0%).
• EU Consumer Confidence Final (Oct) -27.6 vs. Exp. -27.6 (Prev. -27.6, Rev. -28.8)

NOTABLE US HEADLINES

• Click here for the US Early Morning Note.

CRYPTO

• Bitcoin is under modest pressure though resides in narrow ranges and despite the DXY reclaiming 111.00, Bitcoin still holds onto the USD 20k handle.

GEOPOLITICS

RUSSIA-UKRAINE

• 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.
• 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.

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.
• Agricultural Bank of China (1288 HK) Q3 2022 (CNY): Net 68.5bln, NIM 1.96%, NPL ration 1.40%.
• ICBC (1398 HK) 9M 2022 (CNY): net profit 265.82bln, NPL 1.4% at end-Sept.

NOTABLE APAC 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%); 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%); Jobs/Applicants Ratio* (Sep) 1.34 vs. Exp. 1.33 (Prev. 1.32)
• Australian PPI QQ (Q3) 1.9% (Prev. 1.4%); YY (Q3) 6.4% (Prev. 5.6%)