• APAC stocks traded mostly lower throughout the session following the downbeat lead from Wall Street (-0.8%). 
• DXY was choppy in a tight range and traded on either side of 106.50 after printing a 105.85-106.79 range yesterday; Yuan underperformed
• ECB officials may favour a 50bps rate hike in December rather than 75bps, although an inflation surge could still lead to 75bps, according to Bloomberg sources
• Fed's Waller (voter, hawk) said recent data have made him more comfortable with the idea of a 50bps hike in December
• European equity futures were flat overnight with the Euro Stoxx 50 future +0.1% after cash markets closed lower by 0.8% yesterday.
• Looking ahead, highlights include  EZ Final HICP, US Building Permits, US Philly Fed, US IJC, Speeches from BoE's Pill, Fed's Bostic, Bullard, Bowman, Mester, Kashkari, Jefferson, Evans, SNB's Maechler, Supply from Spain, France.

US TRADE

• US stocks closed with losses Wednesday with the selling most acute in the US morning on bleak Target (TGT) consumer guidance and mixed US data.
• SPX -0.82% at 3,959, NDX -1.45% at 11,699, DJIA -0.11% at 33,555, RUT -1.91% at 1,853.
• Click here for a detailed summary.

OTHER NOTABLE HEADLINES

• Fed's Barr (voter) said household balance sheets are generally strong, which is positive heading into the next period for the economy. Fed is paying attention to loan losses that are ticking up, but loan-loss levels are not that high right now, according to Reuters.
• Fed's Waller (voter, hawk) said recent data has made him more comfortable with the idea of a 50bps hike in December, which would still be a significant move; will watch data between now and December before deciding on the next policy step, via Reuters.
• NVIDIA Corp (NVDA) Q1 2023 (USD): Adj. EPS 0.58 (exp. 0.69), Revenue 5.93bln (exp. 5.77bln). Data center 3.83bln (exp. 3.79bln), +30% Y/Y. Gaming 1.57bln (exp. 1.32bln), -51% Y/Y. Professional Visualization 200mln (exp. 349.1mln), -65% Y/Y. Q4 revenue view 6.00bln plus or minus 2% (exp. 6.09bln). Co. said certain export restrictions to China impacted Q3 revenue, with the decline largely offset by sales of alternative products in China. Shares +2.2% after-market
• US Republicans have won control of the US House by a slim margin, according to NBC and CNN.

APAC TRADE

EQUITIES

• APAC stocks traded mostly lower throughout the session following the downbeat lead from Wall Street.
• ASX 200 was the relative outperformer with gains lead but the Consumer Staples and IT sector, with no reaction seen in wake of the Aussie jobs data.
• Nikkei 225 traded on either side of the 28k mark before stabilising under the round figure, with losses modest during the session.
• KOSPI gave up earlier gains and drifted lower throughout the session with losses led by the chip and IT sectors, whilst sentiment in the region was soured by North Korea firing a short-range ballistic missile.
• Hang Seng and Shanghai Comp opened with and then extended on losses with the former seeing downside in Meituan, which fell around 6% after Tencent announced a special dividend in the form of Meituan shares, whilst People's Daily also suggested China is able to achieve COVID Zero as mainland cases roses at the fastest pace since April.
• US equity futures resumed trade on a modestly firmer footing, although these gains trimmed heading into the Chinese cash open; ES +0.2%
• European equity futures were flat overnight with the Euro Stoxx 50 future +0.1% after cash markets closed lower by 0.8% yesterday.
• Click here for a detailed summary.

FX

• DXY was choppy in a tight range and traded on either side of 106.50 after printing a 105.85-106.79 range yesterday.
• EUR/USD and GBP/USD were modestly pressured with the former finding some resistance at 1.0400 in the NY afternoon whilst the latter gave up 1.1900 handle ahead of the UK autumn statement later today.
• USD/JPY traded sideways around the 139.50 mark with little reaction seen to reiterations from BoJ Governor Kuroda.
• Antipodeans were modestly softer amid soured risk tone and upticks in the Dollar, with AUD/USD above its 100 DMA (0.6695) whilst the NZD/USD briefly dipped under yesterday’s low.
• Yuan was an underperformer amid China's latest COVID cases alongside reports that China has asked banks to report on liquidity following the sudden bond rout.
• PBoC sets USD/CNY mid-point at 7.0655 vs exp. 7.0479 (prev. 7.0363)
• Click here for a detailed summary.

FIXED INCOME

• 10yr UST futures were modestly softer and fell under the 113.00 level having rallied through the Wall Street session after mixed US data, troubling retailer reports, and a near-record strength 20yr auction.
• Bund futures held onto modest intraday gains but have been coming off best levels in tandem with price action in their US counterpart
• 10yr JGB futures traded in lockstep with cross-market counterparts, with the corresponding yield under 25bps during the session.
• Click here for a detailed summary.

COMMODITIES

• Crude futures were on a softer footing amid the firmer Dollar, soured risk tone, and an uptick in China’s COVID cases, with the latter seeing the biggest one-day increase in COVID cases since April.
• Spot gold was softer as the DXY picked up, with prices falling under yesterday’s USD 1,769.21/oz low.
• Base metals in China opened softer with nickel dropping more than 4% at the open, whilst lead, copper, zinc, aluminium and iron ore saw shallower losses amid the firmer Dollar and China’s COVID situation.
• Iraq SOMO head said Iraq targets raising oil production capacity to 7mln in BPD, via Reuters.
• LME noted the volatility in nickel and is undertaking enhanced monitoring to ensure that participants' trading activities are being conducted appropriately, via Reuters.
• TC Energy's Keystone oil pipeline issues were resolved after force majeure, but TC Energy will reduce injections for the rest of November, according to Reuters sources.
• Click here for a detailed summary.

CRYPTO

• Bitcoin was modestly softer overnight and traded on either side of USD 16,500, whilst Ethereum briefly dipped under USD 1,200.
• US Treasury Secretary Yellen said the failure of crypto exchanges shows the need for oversight; Congress needs to move quickly to fill regulatory gaps.
• Indonesia has ordered exchanges to stop trading the FTX token, according to the commodity futures regulator.

NOTABLE ASIA-PAC HEADLINES

• China reported 2,388 (prev. 1,623) new confirmed coronavirus cases in the mainland on Nov 16th, via Reuters
• China is able to achieve COVID Zero, according to People's Daily.
• China has asked banks to report on liquidity following the sudden bond rout, according to Bloomberg.
• PBoC injected CNY 132bln via 7-day reverse repos with the rate at 2.00% for a CNY 123bln net injection.
• Tokyo to raise COVID alert level by one notch amid the recent rise in COVID cases, according to NTV.
• BoJ Governor Kuroda said it is important to continue monetary easing to support the economy. Kuroda said recent price hikes are due to cost-push factors, according to Reuters. Kuroda said BoJ will closely coordinate with the government to conduct appropriate policy.
• Senior BoJ official Uchida said it is too early to discuss the exit from monetary stimulus, via Reuters.
• Saudi Arabia signed USD 30bln worth of investment agreements with South Korean firms, covering clean energy and medical tech, according to the Saudi Investment Minister

APAC DATA

• New Zealand PPI - Outputs QQ (Q3) 1.6% (Prev. 2.4%)
• New Zealand PPI - Inputs QQ (Q3) 0.8% (Prev. 3.1%)
• Japanese Trade Balance Total Yen (Oct) -2162.3B vs. Exp. -1610.0B (Prev. -2094.0B, Rev. -2094.3B)
• Japanese Imports YY (Oct) 53.5% vs. Exp. 49.7% (Prev. 45.9%, Rev. 45.7%)
• Japanese Exports YY (Oct) 25.3% vs. Exp. 28.1% (Prev. 28.9%)
• Japanese Foreign Invest JP Stock w/e 556.6B (Prev. 340.0B, Rev. 333.7B)
• Japanese Foreign Bond Investment w/e -123.9B (Prev. -581.8B, Rev. -574.5B)
• Australian Participation Rate (Oct) 66.5% vs. Exp. 66.6% (Prev. 66.6%)
• Australian Employment (Oct) 32.2k vs. Exp. 15.0k (Prev. 0.9k)
• Australian Full Time Employment (Oct) 47.1k (Prev. 13.3k)
• Australian Unemployment Rate (Oct) 3.4% vs. Exp. 3.6% (Prev. 3.5%)

GEOPOLITICS

• Chinese President Xi may visit Russia in 2023; government heads could have call in December, according to Tass.
• North Korea fired an unspecified ballistic missile toward East Sea, according to the South Korean military cited by Yonhap.
• North Korea said the recent South Korea, US, and Japan summit would lead the Korean peninsula to an even more unpredictable situation, according to KCNA.
• South Korean and US militaries conducted missile defence drills following the North Korean missile launch, according to the South Korean military.
• UK blocked Chinese takeover of Newport chip plant, ordering Chinese-owned Nexperia to sell at least 86% of the factory in order to mitigate risk to national security, according to FT.
• China's President Xi said China is willing to increase imports from Italy, according to CCTV.

EU/UK

NOTABLE EU/UK HEADLINES

• ECB officials may favour a 50bps rate hike in December rather than 75bps, although inflation surge could still lead to 75bps; initial discussions are not showing momentum for 75bps, according to Bloomberg sources.
• UK is to reportedly spend billions on energy efficiency to cut demand by 13%, according to Bloomberg.