• European bourses are benefitting from post-FOMC tailwinds with heavyweight earnings reports bolstering performance; US futures are more contained overall.
• However, the NQ is the standout outperformer post-META, +19% pre-market.
• The DXY has reclaimed and marginally extended above the 101.00 mark to a current 101.27 peak, after printing a fresh YTD trough at 100.81 post-Fed, to the modest detriment of peers.
• USTs have seemingly paused for breath after Wednesday's rally with upside in EGBs also exhausted for the time being pre-ECB and perhaps to digest hefty issuance while Gilts continue to rally.
• Crude benchmarks are in close proximity to the unchanged mark after paring back modest overnight gains amid a slight bounce in the USD.
• Looking ahead, highlights include US IJC & Factory Orders, BoE & ECB Policy Announcements and Press Conferences. Earnings from Amazon, Apple, Alphabet, Ford, Merck, Bristol-Myers & Qualcomm.

EUROPEAN TRADE

EQUITIES

• European bourses are benefitting from post-FOMC tailwinds with heavyweight earnings reports bolstering performance in the Tech, Telecoms and Energy sectors, Euro Stoxx 50 +1.1%.
• Stateside, futures are firmer across the board with action more contained vs European peers, ES +0.4%, with the exception of the NQ +1.3% which outperforms post-META.
• Meta Platforms Inc (META) - The social media bellwether surged over 20% afterhours after Q4 results, where although EPS missed expectations, revenue topped estimates, as did DAUs for the group, while advertising revenue was also above the consensus view, and it boosted its buyback by USD 40bln. +19% in pre-market trade
• Click here and here for a recap of European earnings, which include Shell, Infineon, BT, Santander, Deutsche Bank, ING & more.
• Click here for more detail.

FX

• The DXY has reclaimed and marginally extended above the 101.00 mark to a current 101.23 peak, after printing a fresh YTD trough at 100.81 post-Fed, to the modest detriment of peers ex-NZD.
• NZD has reclaimed some of yesterday's lost ground against the AUD in wake of mixed data releases for Australia overnight.
• USD/CAD is contained near 1.32 pre-data while the EUR is essentially unchanged near 1.10 ahead of the ECB.
• In slight contrast, GBP has been erring lower and currently resides at the lower-end of 1.2319-1.24 parameters pre-BoE, with EUR/GBP firmly above 0.89 given the differing conviction levels on the magnitude and guidance between the BoE and ECB.
• PBoC set USD/CNY mid-point at 6.7130 vs exp. 6.7142 (prev. 6.7492)
• Brazil Central Bank maintained the Selic rate at 13.75%, as expected. BCB will remain vigilant and assess if the strategy of maintaining the Selic rate for a sufficiently long period will be enough to ensure the convergence of inflation, while it will not hesitate to resume the tightening cycle if the disinflationary process does not proceed as expected and noted that despite some recent moderation, consumer inflation and measures of underlying inflation are above the range compatible with meeting the inflation target.
• Click here for more detail.

FIXED INCOME

• USTs have seemingly paused for breath after Wednesday's rally with upside in EGBs also exhausted for the time being pre-ECB and perhaps to digest hefty issuance from France and Spain.
• Currently, USTs are contained in 115.10-18 parameters while Bunds are at the lower end of a 137.00-62 band.
• In contrast, Gilts continue to climb and have been within 20 ticks or so of 106.00 with the associated yield at 3.20% ahead of the BoE and the potential for a lessening to tightening guidance.
• Click here for more detail.

COMMODITIES

• Crude benchmarks are in close proximity to the unchanged mark after paring back modest overnight gains amid a slight bounce in the USD with newsflow elsewhere limited.
• WTI trades around session lows under USD 76.50/bbl (vs a USD 77.24/bbl high) while its Brent counterpart sits under USD 82.75/bbl (vs a USD 83.61/bbl high).
• Shell (SHEL LN) CEO sees continued appetite for gas in China, too early to say if the European energy crisis over. Adds, gas business can keep growing next year.
• Spot gold is holding onto gains above the USD 1950/oz mark with the 19th April peak at USD 1981/oz ahead while LME Copper reclaimed USD 9.1k/T after slipping below the mark on Wednesday.
• Click here for more detail.

NOTABLE HEADLINES

• German VDMA: 2022 engineering orders -4% YY, Domestic -5% Foreign -4%.

NOTABLE DATA

• German Trade Balance, EUR, SA (Dec) 10.0B vs. Exp. 9.2B (Prev. 10.8B, Rev. 10.9B)
• German Imports MM SA (Dec) -6.1% vs. Exp. -0.8% (Prev. -3.3%, Rev. -3.2%); Exports MM SA (Dec) -6.3% vs. Exp. -3.3% (Prev. -0.3%, Rev. 0.1%)

NOTABLE US HEADLINES

• US House Speaker McCarthy said he had a good first meeting with US President Biden and they agreed to continue the conversation, while he added they both had different perspectives but he thinks they can find common ground and he told President Biden he would like to reach an agreement well before the deadline. Furthermore, the White House said President Biden welcomes separate discussions with congressional leaders about how to reduce the deficit and control national debt while continuing to grow the economy.
• Click here for the US Early Morning note.

GEOPOLITICS

• North Korean state media said the US and allies’ military drills have pushed the situation to an extreme red line and that US drills threaten to turn the peninsula into a huge war arsenal, according to Reuters and SCMP. Furthermore, the White House said it rejects the notion that US joint military exercises in the region serve as a provocation for North Korea and said the US has no hostile intent towards North Korea, while it seeks serious diplomacy and will work with allies to fully enforce UN Security Council resolutions aimed at limiting North Korean weapons programs.
• Russian Foreign Minister Lavrov says will ensure that events organised by the West for the anniversary of the special operation in Ukraine will not be the only thing to attract world attention.
• Russian President Putin to speak on Thursday at a "celebratory concert" in Volgograd, via NY Times.
• Russian Foreign Minister Lavrov says that Moldova could become the new "anti-Russian" project after Ukraine. Adds, our relations with China are stronger than a military alliance, there is no limit.

CRYPTO

• Bitcoin remains firmer on the session but is towards the lower-end of day's range after pulling back from a shortlived eclipse of USD 24k.

APAC TRADE

• APAC stocks traded mostly higher in the aftermath of the FOMC meeting where the Fed slowed the pace of rate increases and Fed Chair Powell provided a slew of two-sided remarks in which he pointed to a couple more rate hikes to get to an appropriately restrictive stance but noted they are not very far from that level and acknowledged that the disinflationary process had begun.
• ASX 200 was led by outperformance in gold miners and tech but with gains limited by weakness in other commodity-related sectors and after mixed data.
• Nikkei 225 notched marginal gains with earnings releases driving the best and worst performing stocks and the 27,500 level continued to elude the index.
• Hang Seng and Shanghai Comp. initially gained although price action was then choppy after the HKMA raised rates in lockstep with the Fed and the PBoC continued its substantial post-holiday liquidity drain.

NOTABLE ASIA-PAC HEADLINES

• Hong Kong Monetary Authority raised its base rate by 25bps to 5.00%, which was as expected and in lockstep with the Fed.
• Australia-China trade discussions have the Australian PM Albanese "anticipating" a Beijing visit in 2023, via SCMP citing sources; adding, next steps amid the easing of tensions will see Trade Minister Farrell visiting Beijing prior to the PM. Subsequently, Chinese Commerce Minister Wentao and Australian Trade Minister Farrell will hold talks next week via video link, via Global Times.

DATA RECAP

• South Korean CPI MM (Jan) 0.8% vs. Exp. 0.5% (Prev. 0.2%); YY (Jan) 5.2% vs. Exp. 5.0% (Prev. 5.0%)
• Australian NAB Business Confidence (Q4) -1 (Prev. 9)
• Australian Building Approvals (Dec) 18.5% vs. Exp. 1.0% (Prev. -9.0%, Rev. -8.8%)