• APAC stocks were pressured following the tech-led declines on Wall St owing to the Apple event and with participants cautious ahead of the upcoming US CPI data.
• Apple (AAPL) shares sold off after the new iPhone prices provided some disappointment, whilst some also cited a “sell the news” event. 
• ECB’s new 2024 inflation projection is to be above 3% vs. 3% in June, firming the case for an interest rate hike, according to Reuters sources.
• DXY eked mild gains amid the risk-off mood, EUR/USD remained indecisive after yesterday’s whipsawing, and USD/JPY resumed its upward trend after finding support near 147.00.
• Looking ahead, highlights include UK GDP Estimate, US CPI, IEA Oil Market Report, Supply from Italy, UK, Germany & US

US TRADE

EQUITIES

• US stocks were lower with the Nasdaq leading the downside as tech stocks were pressured following the Apple event where the iPhone pricing point provided some disappointment, while higher oil prices and a slight increase in short-term yields ahead of the incoming US CPI data also contributed to the cautious mood.
• SPX -0.57% at 4,461, NDX -1.11% at 15,289, DJIA -0.05% at 34,646, RUT +0.01% at 1,855.
• Click here for a detailed summary.

NOTABLE US HEADLINES

• Apple (AAPL) stated in its product event that the response to the Vision Pro has been amazing and it is on track to ship the Vision Pro early next year, while it announced its Apple Watch Series 9. Furthermore, it also announced the iPhone 15 and iPhone 15 Pro with iPhone 15 price to start at USD 799 and the Plus at USD 899, while the iPhone Pro starts at USD 999 and Pro Max at USD 1199. Shares closed lower by 1.7%.
• US Commerce Secretary Raimondo is expected to meet with US business CEOs on Thursday.
• US government is reportedly looking to offload almost USD 13bln of mortgage bonds it amassed from Silicon Valley Bank and Signature Bank following the collapse of the lenders, according to Bloomberg.
• US House Speaker McCarthy said he has a plan to avoid a government shutdown, while it was later reported that McCarthy will unveil a stopgap funding plan today.

ECB SOURCES

• ECB’s new 2024 inflation projection is to be above 3% vs. 3% in June, firming the case for an interest rate hike, according to Reuters sources. Furthermore, the ECB is to cut its 2023 and 2024 economic growth projections to be broadly in line with market expectations, while a source said the rate decision is still a close call and formal proposals for the meeting have not yet been presented.
• Market pricing now ascribes a ~79% chance of a 25bps hike at Thursday’s meeting vs. ~50% in recent sessions.

APAC TRADE

EQUITIES

• APAC stocks were pressured following the tech-led declines on Wall St owing to the post-Apple event disappointment and with participants cautious ahead of the upcoming US CPI data.
• ASX 200 declined as tech stocks mirrored the underperformance seen in US counterparts and with nearly all sectors on the retreat aside from energy and utilities after further upside in oil prices.
• Nikkei 225 swung between gains and losses with early advances seen following mixed PPI data and the improvement in BSI large industry surveys, although the index eventually slipped with money markets now pricing the BoJ to exit negative rates in January compared to a previous pricing of an exit in September next year.
• Hang Seng and Shanghai Comp were initially kept afloat amid strength in the energy names and with developers underpinned as some cities further loosened restrictions for the sector, but then conformed to the soured mood.
• US equity futures marginally extended on the prior day's losses ahead of the latest US inflation data.
• European equity futures are indicative of a weaker open with Euro Stoxx 50 future -0.5% after the cash market closed down 0.3% yesterday.

FX

• DXY eked mild gains amid the risk-off mood but with price action kept rangebound in the absence of fresh macro drivers and with participants lacking commitment heading into the US inflation data.
• EUR/USD remained indecisive after yesterday’s whipsawing and following the ECB source reports.
• GBP/USD struggled for direction after the recent headwinds from weaker jobs data and with monthly GDP and Industrial Production releases scheduled later.
• USD/JPY resumed its upward trend after it springboarded from a platform at the 147.00 level.
• Antipodeans were pressured amid the subdued risk appetite and their high-beta statuses.
• PBoC set USD/CNY mid-point at 7.1894 vs exp. 7.2783 (prev. 7.1986)

FIXED INCOME

• 10yr UST futures remained subdued after the prior day’s indecisive performance ahead of the US CPI data and following a decent 10yr auction.
• Bund futures extended on recent selling pressure following the ECB sources and ahead of tomorrow's close-call ECB meeting.
• 10yr JGB futures were choppy after the Ueda-induced selling pressure and despite the BoJ’s presence in the market for nearly JPY 1.4tln of JGBs on top of its fixed-rate purchases.

COMMODITIES

• Crude futures slightly extended on the prior day's gains, although gains in the complex were capped after bearish private inventories and the overall risk-off mood.
• US Energy Inventory Data (bbls): Crude +1.2mln (exp. -1.9mln), Gasoline +4.2mln (exp. +0.2mln), Distillate +2.6mln (exp. +1.3mln), Cushing -2.4mln.
• US EIA STEO raised 2023 forecast for world oil demand growth by 50k BPD and now sees a 1.81mln BPD Y/Y increase, while it cut 2024 world oil demand growth by 250k BPD to a 1.36mln BPD Y/Y increase.
• Spot gold languished around the prior day's lows as participants awaited key inflation data.
• Copper futures were lacklustre as the risk momentum in the largest copper purchaser faltered.

CRYPTO

• Bitcoin traded rangebound and eased back after its recent brief return above USD 26,000.
• Binance US reduced staff and its president departed, according to The Block.

NOTABLE ASIA-PAC HEADLINES

• China will extend tariff exemptions for imports of some US products until April 30th, 2024.
• US Senate Majority Leader Schumer plans a bipartisan delegation to China in October, according to Punchbowl.
• Japanese Finance Minister Suzuki said PM Kishida asked him to stay on in the current job in the cabinet reshuffle, while he added that they need to respond appropriately to market moves and will decide on the size and content of the new economic package from now on, according to Reuters.
• Nikkei article stated there is a sense at the BoJ that December is too soon to end negative rates and although the government is keen on moves that could support the weak Yen, December is a politically difficult time and a January decision appears to be a more realistic scenario.

DATA RECAP

• Japanese Business Survey Index Large Manufacturing (Q3 2023) 5.4% (Prev. -0.4%)
• Japanese Business Survey Index Large All Industry (Q3 2023) 5.8% (Prev. 2.7%)
• Japanese PPI MM (Aug) 0.3% vs. Exp. 0.1% (Prev. 0.1%)
• Japanese PPI YY (Aug) 3.2% vs. Exp. 3.2% (Prev. 3.6%)

GEOPOLITICS

• Russian-installed Governor of Sevastopol said Ukraine launched an air attack on Sevastopol in Crimea, while the air attack sparked a fire at Sevastapol's shipyard and 24 people were injured, according to Reuters.
• Russian President Putin and North Korean leader Kim met at the Vosotchny Cosmodrome for talks. Russian President Putin responded that it is why they have come to the Vostochny Cosmodrome when asked if Russia will help North Korea build satellites, while he added that they will discuss all issues and that North Korean Leader Kim is showing a big interest in Russian rocket equipment.
• North Korea fired projectiles believed to be ballistic missiles which landed outside of Japan's exclusive economic zone, according to NHK citing the Japanese Coast Guard.
• Taiwan's Defence Ministry said 28 Chinese military aircraft entered Taiwan's air defence zone on Wednesday morning and some Chinese aircraft crossed the Bashi channel to carry out drills with Chinese carrier Shandong, while it also showed a picture of a Taiwanese warship shadowing the Shandong.

EU/UK

• ECB's Villeroy said overall inflation is past its peak in France and the ECB will bring inflation toward 2% by 2025, according to an AFP interview.
• BP (BP/LN) CEO Looney has surprisingly stepped down after he had failed to fully disclose previous relationships with colleagues, according to The Telegraph.