• European bourses are subdued across the board, Euro Stoxx 50 -0.8%, as the post-Powell pressure reverberates across from APAC trade.
• Stateside, futures are lower across the board though only marginally so with a busy session ahead incl. BoE and ISM Services PMI; ES -0.3%, NQ -0.3%.
• USD continues to rise to the detriment of peers across the board following the FOMC/Powell-presser; DXY to a 112.98 peak from a 111.81 base.
• NOK has been impaired by an as-guided but sub-market pricing 25bp hike from the Norges Bank
• Core fixed benchmarks under pressure across the board as yields continue to extend, particularly at the short-end of the UST curve.
• Commodities are under broad pressure given the continued post-FOMC advances in the USD, crude benchmarks lower by over USD 1.00/bbl.
• Looking ahead, highlights include US IJC, Composite/Services PMI (Final), Factory Orders & ISM Services, BoE Policy Announcement, Speeches from BoE's Bailey & Mann.
• Click here for the Week Ahead preview.

EUROPEAN TRADE

EQUITIES

• European bourses are subdued across the board, Euro Stoxx 50 -0.8%, as the post-Powell pressure reverberates across from APAC trade.
• Sectors are all in the red with the exception of banking names that are deriving some benefit from yields and conscious of numerous European earnings within the sector, including BNP and ING.
• Stateside, futures are lower across the board though only marginally so with a busy session ahead incl. BoE and ISM Services PMI; ES -0.3%, NQ -0.3%.
• Morgan Stanley (MS) reportedly plans to begin layoffs in the coming weeks as deal making slows, according to Reuters citing sources.
• Cigna Corp (CI) Q3 2022 (USD): EPS 6.04 (exp. 5.71), Revenue 45.3bln (exp. 44.76bln); raises FY22 outlook.
• Click here for more detail.

FX

• USD continues to rise to the detriment of peers across the board following the FOMC/Powell-presser; DXY to a 112.91 peak from a 111.81 base.
• JPY is the relative outperformer amid holiday outages for the region, the ever present possibility of intervention and perhaps some haven allure given broader risk aversion; though, USD/JPY is back above 148.00.
• GBP is the standout underperformer given the USD action but also vs EUR, with EUR/GBP lifting past 0.8650 pre-BoE with the Pound unable to derive any real respite from upward PMI revisions.
• NOK has been impaired by an as-guided but sub-market pricing 25bp hike from the Norges Bank; interestingly, Governor Bache hasn't given much away on the likely December magnitude thus far.
• Click here for more detail.

Notable FX Expiries, NY Cut:

• EUR/USD: 0.9750 (1.09BN), 0.9775 (614M), 0.9800 (211M), 0.9850-55 (1.03BN), 0.9880-90 (990M), 0.9900-05 (2.2BN), 0.9950-55 (849M), 0.9970 (351M), 0.9985-95 (718M), 1.0000-10 (1.96BN) USD/JPY: 146.37 (218M), 147.00 (226M), 147.50-60 (1.25BN), 148.00 (316M) 149.00 (480M), 150.00 (765M)
• Click here for more detail.

FIXED INCOME

• Core benchmarks under pressure across the board as yields continue to extend, particularly at the short-end of the UST curve.
• Gilts are the relative outperformers, though still lower by over 50 ticks pre-BoE, as while 75bp is expected a 'dovish' surprise/dissent cannot be ruled out entirely.
• Bunds are in-fitting with their US peer and significantly lower though they have held onto support at the 137.00 mark; for reference, numerous ECB speakers haven't had much sway on EGB price action thus far.
• Click here for more detail.

COMMODITIES

• Commodities are under broad pressure given the continued post-FOMC advances in the USD, crude benchmarks lower by over USD 1.00/bbl.
• Though, desks are cognisant of the substantial drawdowns in crude stockpiles this week as a potential cushioning factor.
• Metals are similar under USD-induced pressure, spot gold dropping further from the USD 1650/oz mark with LME copper below USD 7.5k/T once again.
• Urals and Siberian Light oil loadings from Novorossiisk set at 2.47mln/T for November (2.84mln/T in October), via Reuters citing sources
• Click here for more detail.

CENTRAL BANKS

• Norges Bank hikes by 25bps to 2.50% (exp. evenly split between 25bp & 50bp); the policy rate will most likely be raised further in December.. Click here for full details, reaction and newsquawk analysis.
• ECB's Kazaks says a EZ recession is already his baseline, but it should be shallow. Monetary policy must continue to tighten; rates need to go much higher, no need for a pause at turn of the year.
• ECB's Panetta says the medium term inflation outlook presents clear upside risks, further policy adj. is warranted. Need to bring inflation back to target as soon as possible, but not sooner.
• ECB's Lagarde says a recession is not sufficient to tame inflation.
• ECB's Centeno says a good part of rate hikes should already have occurred, EZ inflation should peak this quarter, via Publico.

NOTABLE EUROPEAN HEADLINES

• UK PM Sunak and Chancellor Hunt are planning to extend the windfall taxes on oil and gas companies to raise an estimated GBP 40bln over 5 years, according to The Times.
• ECB's Kazaks said inflation is very high in the eurozone and it is clear we need to raise interest rates, according to Bloomberg.

NOTABLE EUROPEAN DATA

• UK S&P Global/CIPS Services PMI Final (Oct) 48.8 vs. Exp. 47.5 (Prev. 47.5); Composite PMI Final (Oct) 48.2 vs. Exp. 47.2 (Prev. 47.2)
• EU Unemployment Rate (Sep) 6.6% vs. Exp. 6.6% (Prev. 6.6%, Rev. 6.7%).

NOTABLE US HEADLINES

• Elon Musk is planning to eliminate half of Twitter jobs in a cost-cutting drive, according to Bloomberg.
• Click here for the US Early Morning Note.

CRYPTO

• Bitcoin is modestly firmer on the session but continues to trade within fairly narrow parameters above the USD 20k mark post-FOMC as participants look to upcoming risk events.

GEOPOLITICS

RUSSIA-UKRAINE

• Ukrainian President Zelensky said a Russian plane fired cruise missiles on Wednesday which flew across the Black Sea corridor used to export grain, according to Reuters.
• Russia's Kremlin says Russia's resumption of the grain agreement does not mean that it has been automatically extended and its results must be evaluated before a decision is made, via Al Jazeera.

OTHER

• South Korean military detected that North Korea fired one long-range and two short-range missiles, while it was reported that the North Korean missile went through a stage of separation but may have failed after the second stage separation, according to Yonhap.
• US condemned North Korea's ICBM launch and called on North Korea to refrain from further provocations and engage in sustained and substantive dialogue, according to Reuters.

APAC TRADE

EQUITIES

• APAC stocks were mostly lower with the global risk appetite subdued in the aftermath of the FOMC, while the risk tone was also not helped by a deterioration in Chinese Caixin PMI data and the absence of Japanese participants for Culture Day holiday.
• ASX 200 was pressured as underperformance in the mining-related sectors led the broad declines in the index and after the New South Wales Chief Health Officer warned of a looming wave of COVID infections.
• KOSPI was contained amid geopolitical concerns after North Korea's recent record number of missile launches, while it continued firing missiles again today.
• Hang Seng and Shanghai Comp were negative after Chinese Caixin Services and Composite PMI data worsened and with China’s National Health Commission reiterating adherence to zero-COVID policy, while the HKMA also raised rates by 75bps in lockstep with the Fed.

NOTABLE APAC HEADLINES

• Hong Kong Monetary Authority raised the base rate by 75bps to 4.25%, as expected, while the Macau Monetary Authority also raised its base rate for the discount window by 75bps to 4.25%.
• RBNZ said there is high confidence that they can get inflation under control and that the labour shortage is the single most constraining factor for businesses in New Zealand, while Governor Orr also noted a laser-like focus on returning inflation to the 1%-3% target.
• Earthquake shakes buildings within Tokyo, Japan, via Reuters citing witnesses; reports indicate an intensity of 4 and a magnitude of 5.2, epicentre in Chiba.

DATA RECAP

• Chinese Caixin Services PMI (Oct) 48.4 vs. Exp. 49.0 (Prev. 49.3); Composite PMI (Oct) 48.3 (Prev. 48.5)
• Australian Trade Balance (AUD) (Sep) 12.4B vs. Exp. 8.9B (Prev. 8.3B); Exports MM (Sep) 7% (Prev. 3%); Imports MM (Sep) 0% (Prev. 4%)