• European bourses in the green in a continuation of APAC trade with a blockbuster earnings docket influencing
• US futures firmer and the NQ outperforms following Meta’s after-hours report, META +8.3%
• DXY pressured to near 100.50 with EUR & JPY taking advantage ahead of their rate decisions, Antipodeans lead given risk sentiment
• Crude benchmarks bid intraday given risk & USD, with both precious and base metals benefitting
• Looking ahead, highlights include US Durable Goods, PCE Prices Advance, IJC, GDP Advance, ECB Policy Announcement and Press Conference with Lagarde, Supply from the US.
• Earnings from McDonald's, Ford, Abbvie, Mastercard & Intel Corp.

EUROPEAN TRADE

EQUITIES

• European bourses are in the green, Euro Stoxx 50 +1.4%; with action a continuation of the APAC upside post-FOMC and heavily influenced by the numerous earnings reports.
• Sectors primarily firmer with Media leading after Relx & UMG, Tech names are a close second given bullish Samsung AI remarks. Conversely, Energy lags following TotalEnergies & Shell's reports. Auto sector is mixed with Mercedes-Benz bid but Renault and Volkswagen pressured.
• Stateside, futures are firmer with the ES +0.6% though the NQ +1.3% outperforms following Meta's after-hours report.
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• Click here and here for a recap of the main European equity updates.

FX

• Buck bears pounce on dovish elements of FOMC statement and Powell presser after latest 25bp Fed rate hike, DXY sinks from 101.000 to 100.540.
• Euro and Yen take advantage of Dollar demise ahead of ECB and BoJ, EUR/USD eyes expiries at 1.1150 and USD/JPY reverses through 140.00 where expiry interest also resides.
• Aussie and Kiwi seize on Greenback weakness and benefit from bullish risk sentiment, AUD/USD tops 0.6800 and NZD/USD approaches 0.6275.
• Franc, Pound and Loonie also up against US rival and latter underpinned by hawkish-sounding BoC minutes independently; USD/CHF closer to 0.8550 than 0.8600, Cable 1.3000 than 1.2900 and USD/CAD 1.3150 than 1.3200.
• PBoC set USD/CNY mid-point at 7.1265 vs exp. 7.1468 (prev. 7.1295)
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• Click here for the Option Expires for the NY Cut.

FIXED INCOME

• Bonds make more headway post-Fed before pullback as spotlight shifts to ECB and top tier US data.
• Bunds towards base of 132.84-133.55 range, Gilts closer to 96.06 low than 96.81 high and T-note back below par between 112-07/111-26+ bounds.
• BTPs digesting pretty well received Italian supply after peaking early at 116.42.
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COMMODITIES

• WTI and Brent futures are firmer intraday, with the complex propped up by the broader risk appetite and softer Dollar in the aftermath of a dovish FOMC hike, whilst Chinese stimulus hopes keeps prices underpinned.
• Spot gold benefits from the softer post-FOMC Dollar, with the index posting mild gains intraday thus far but ultimately above its 100 DMA (USD 1,965.89/oz) after meandering around the moving average earlier this week.
• Base metals also benefit from the weaker Buck, but also see tailwinds from the broader risk appetite and ongoing hopes of Chinese stimulus.
• Nigeria raised August Bonny Crude official selling price to a premium of USD 0.38/bbl vs dated Brent and raised Qua Iboe OSP to a premium of USD 0.75/bbl vs dated Brent, according to Reuters.
• Russia expects to produce 515mln tons of oil this year, according to TASS.
• Russia's Government to consider lawmakers' proposal of raising oil export duty, according to RIA. Elsewhere, Russian Energy Minister Shulginov says Russia is to supply 18-20mln tonnes of oil products to Africa this year, according to Tass.
• Russian President Putin says we will be ready in the next 3-4 months to supply grain to Africa.
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NOTABLE US HEADLINES

• eBay Inc (EBAY) Q2 2023 (USD): Adj. EPS 1.03 (exp. 0.99), Revenue 2.54bln (exp. 2.51bln); Gross merchandise volume fell 1.9% Y/Y to 18.2bln (exp. 18.4bln), Active buyers fell 4.3% Y/Y to 132.0mln (exp. 132.9mln).-5.7% in pre-market trade
• Meta Platforms Inc (META) Q2 2023 (USD): EPS 2.98 (exp. 2.91), Revenue 32.00bln (exp. 31.12bln), Advertising Revenue 31.50bln (exp. 30.42bln), FB DAUs 2.06bln (exp. 2.03bln), FB MAUs 3.03bln (exp. 3.00bln). Q3 Revenue view 32.00-34.50bln (exp. 31.18bln). +8.3fin% in pre-market trade
• EU antitrust regulator has opened an investigation into Microsoft's (MSFT) tying of its chat and video app Teams with its office product; Co. is concerned that these practices may constitute anti-competitive typing or bundling.
• Click here for the US Early Morning note.

NOTABLE EUROPEAN HEADLINES

• UK Treasury advisors are reportedly worried the BoE risks overdoing in the inflation fight, according to Bloomberg; believe that rate hikes should slow
• CBRT Report: Inflation forecasts revised upwards, exchange rate the main factor behind this. Click here for more detail.

DATA RECAP

• German GfK Consumer Sentiment (Aug) -24.4 vs. Exp. -24.7 (Prev. -25.4)
• Italian Manufacturing Business Confidence (Jul) 99.3 vs. Exp. 99.8 (Prev. 100.3); Consumer Confidence (Jul) 106.7 vs. Exp. 107.8 (Prev. 108.6)

GEOPOLITICS

• North Korea said a Chinese official delivered a letter from President Xi to North Korean Leader Kim and Kim said the dispatch of the Chinese delegation shows Xi's commitment to bilateral ties, while the official noted China is willing to contribute to regional peace and stability, as well as North Korea's prosperity and development, according to KCNA.
• North Korean leader Kim met with Russian Defence Minister Shoigu and they visited a missile and arms expo with senior government officials. Furthermore, North Korean and Russian defence chiefs held talks and their countries are to step up cooperation against gangster-like US hegemony, while the visit is to boost unity in the face of a common enemy and North Korea said it fully supports Russia's battle to protect sovereignty and safety, according to KCNA.
• French President Macron denounced "new imperialism" in the Pacific during a landmark visit to the region and warned of a threat to the sovereignty of smaller states, according to AFP News Agency.
• Russia's FSB says traces of explosives were detected at a vessel which was in transit from Turkey to Russia for grain shipment, via Ifx.

CRYPTO

• Bitcoin is little changed in another narrow range with specifics somewhat light as broader market action remains at the whim of Central Banks and earnings, with the ECB next after the FOMC avoided shaking the boat.

APAC TRADE

• APAC stocks traded higher in the aftermath of the FOMC meeting and press conference where the Fed delivered a widely expected 25bp rate hike and Powell kept the door open for a further increase although didn’t commit to any decision and stressed a data-dependent approach.
• ASX 200 was led by strength in real estate and tech, while participants also digested production updates.
• Nikkei 225 was initially hesitant amid a firmer currency and as the BoJ kick-started its 2-day policy meeting but eventually conformed to the rally.
• KOSPI gained with the spotlight on earnings including Samsung Electronics which topped estimates.
• Hang Seng and Shanghai Comp were positive with outperformance in Hong Kong despite the HKMA’s lockstep rate, as sentiment benefitted from recent support efforts and with the tech and auto industries lifted after China issued guidelines on the standardisation of intelligent connected vehicles and with regulators holding talks with major ride-hailing firms. Furthermore, XPeng shares surged over 30% in early trade after Volkswagen took about a 5% stake in the Co. and plans to jointly develop two electric models for the mid-size segment.

NOTABLE ASIA-PAC HEADLINES

• Hong Kong Monetary Authority raised its base rate by 25bps to 5.75%, as expected.
• BoK said it will strengthen the role of the standing lending facility as a liquidity backstop for financial institutions, while it will lower lending rates, accept more collateral and extend the maturity for loans taken out from its standing lending facility.
• China's National Financial Regulatory Admin. says people's consumption ability is not sufficient and the willingness of consumption not strong.

DATA RECAP

• Chinese Industrial Profits YY (Jun) -8.3% (Prev. -12.6%); YTD (Jun) -16.8% (Prev. -18.8%)
• Australian Export Prices (Q2) -8.5% (Prev. 1.6%); Import Prices (Q2) -0.8% (Prev. -4.2%)