RANsquawk Daily US Opening News - 31st October 2019

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• Fed cut rates by 25bps as expected and stated “it will continue to monitor incoming information as it assesses the appropriate path"
• Asian equities traded mostly positive after mild post-FOMC tailwinds, a slew of blue-chip earnings and disappointing Chinese PMI data
• China Global Times Editor tweeted that based on what he knows, Chile cancelling APEC summit will not affect arrangements of the China-US trade talks
• BoJ kept policy settings unchanged but adjusted its forward guidance to reflect chance...

• European equities are earnings/M&A driven this morning whilst markets remain tentative ahead of today’s risk events
• FX and Fixed Income markets are largely on standby ahead of FOMC
• US President Trump’s insistence that China commits to large purchases of US agricultural products has reportedly become a negotiating sticking point
• Looking ahead highlights include US, ADP, GDP (Advanced), FOMC and BoC Rate Decisions & Press Conferences, ECB's Lautenschlager
• Earnings: Apple,...

• Asian equity markets traded mostly negative after the cautious tone rolled over from Wall St
• A Chinese Foreign Ministry spokesperson said team members will make continuous and stepped-up efforts on the trade consultation
• US President Trump’s insistence that China commits to large purchases of US agricultural products has reportedly become a negotiating sticking point
• UK lawmakers approved the early election bill with 438 votes and 20 against for an election on December 12th
• Looking ahead,...

• European bourses are softer after a relatively flat open, as newsflow remains light ahead of the weeks risk events
• UK Opposition Labour Party are to back a December election, irrespective of the date
• US House Speaker Pelosi announced in a letter to Democrats that the House will vote to formalize the procedures related to impeachment inquiry of President Trump
• Looking ahead highlights include, US Consumer Confidence & Pending Home Sales,...

• Asian equity markets trade mostly higher as the region just about took impetus from Wall St where the S&P 500 and NASDAQ 100 notched record highs
• USTR office is to consider extensions of certain tariff exclusions on USD 34bln of Chinese goods from November 1st
• UK lawmakers rejected PM Johnson's request for an early election with 299 MP's voting in favour, short of the two-thirds (434) majority needed
• UK PM Johnson will now give notice of a short bill (requires a simple majority but can be...

• European bourses are little changed this morning on a lack of newsflow
• European Council President Tusk announces that "The EU27 has agreed that it will accept the UK's request for a Brexit "flextension" until 31 January 2020
• China’s MOFCOM stated the technical consultations of some of the text agreement for the deal with US were basically completed and that the sides agreed to properly handle their core concerns
• Looking ahead, highlights...

• Asian equity markets began the week with a positive tone amid trade hopes after China signalled that a partial agreement may be within reach
• EU is reportedly preparing to allow a 3-month Brexit extension to January 31st 2020 with an option to leave earlier
• UK’s Liberal Democratic party have drawn up a bill which would fix an election for December 9th, SNP are said to back the bill
• In FX, DXY traded relatively stable, GBP/USD was subdued,...

• European bourses are mixed but overall slightly subdued in what has been a quiet session thus far
• Chinese Foreign Ministry state they are extremely indignant about, and oppose, the speech by VP Pence
• FX complex is little changed overall with the USD slightly mixed and GBP softer as election talk increases
• Looking ahead, highlights include US Baker Hughes
• Earnings: Verizon Communications, Phillips 66, Charter Communications, Royal Caribbean, Aon,...

• Asian equities traded mixed with a lack of conviction amid the absence of any firm macro drivers and as earnings releases remained centre stage
• US Vice President Pence suggested the US will continue to seek better relations with China
• UK PM Johnson is calling for an election on December 12th under the Fixed Term Parliament Act
• UK opposition party Labour is to reject PM Johnson’s offer until a no-deal Brexit is taken off the table
• Looking ahead, highlights include German Consumer Sentiment...

• European equities are firmer this morning after a choppy session following Flash PMIs
• Riksbank and Norges Bank left rates unchanged as expected; Riksbank maintained December hiking bias – as such Scandi’s are firmer
• UK PM Johnson reportedly faces increasing revolt from within his party over the threat of holding an election before delivering the Brexit
• Looking ahead highlights include, US Durables, Initial Jobless Claims and Markit PMIs, ECB, and CBRT policy decisions, ECB’s Draghi, US 7yr...

• Asian equity markets traded mixed after having failed to fully sustain the positive lead from Wall St with global markets heavily focused on earnings releases
• UK PM Johnson reportedly faces increasing revolt from within his party over the threat of holding an election before delivering the Brexit
• EU Diplomats are to discuss the UK's extension on Friday and say that an extension until 31 January is most likely
• US President Trump said Turkey told the US that they will make the ceasefire permanent and...

• European bourses are mixed as sentiment remains tentative, although they have been grinding higher throughout the session
• EU could respond as soon as today to the UK’s Brexit extension request, France pusing to wait until Friday
• Russian Energy Minister Novak says he has no information regarding possible discussions on deeper oil production cuts at the OPEC+ December meeting
• In FX, the DXY is modestly firmer with G10 counterparts flat/slightly subdued in comparison
• Looking ahead, highlights...

• Asian equity markets traded lacklustre as the region took its cue from the losses on Wall St where sentiment was dampened by further Brexit uncertainty
• UK Government won the vote on the second reading of the WAB by 329 to 299 votes but lost the vote for the programme motion by 308-322
• EU’s Tusk said he will recommend the EU27 accept UK request for an extension to avoid a no-deal Brexit
• US Commerce Secretary Ross is looking to negotiations with EU to ease trade dispute and is said to have floated new...

• European equities are choppy, sectors are mixed, risk tone remains tentative
• UK government published the Withdrawal Agreement Bill on Monday which will see its first vote at 1900BST on Tuesday
• Canadian PM Trudeau's Liberal Party won the Canadian General Election but fell short of an outright majority
• Looking ahead, highlights include Canadian Retail Sales, US Existing Home Sales, Richmond Fed and APIs, NZ Trade, RBA Assistant Governor Kent,...

• Asian equity markets traded mostly positive amid mild tailwinds from Wall St where all major indices edged higher and the S&P 500 above 3000
• US President Trump said China is purchasing US agricultural goods now and that any issues in phase 2 talks are in many ways a lot easier than the issues faced in phase 1
• UK government published the Withdrawal Agreement Bill on Monday night which will see its first vote at 1900BST on Tuesday
• Canadian...

• Major European bourses are modestly firmer, FTSE lags amid a firmer pound, SAP shares rose after earnings and announcing a deal with Microsoft
• UK Parliament vote on the Brexit deal was postponed on Saturday after lawmakers voted (322-306) in favour of passing the Letwin amendment
• In FX, GBP/USD briefly topped 1.3000, DXY fell further towards 97.00, risk currencies outperform
• Looking ahead highlights include BoE’s Haldane, Fed’s Bowman, ECB...

• Asian equity markets began the week with a cautious tone following last Friday’s lacklustre close on Wall St and amid continued Brexit uncertainty
• Parliament vote on the Brexit deal was postponed on Saturday after lawmakers voted (322-306) in favour of passing the Letwin amendment
• PM Johnson stated that legislation will be tabled in the upcoming week and sent a letter to the EU requesting a Brexit extension which he did not sign
• Looking ahead highlights include, German PPI, BoE’s Haldane, Fed’s...

• Major European Bourses are modestly lower, France’s CAC underperforms as Renault cut outlook
• Chinese economic growth slowed to the weakest pace since 1992, although Q/Q and YTD GDP figures matched analysts’ forecasts, while IP surpassed estimates
• Outside experts reportedly warned President Trump that continued escalation of US-China trade tensions could hurt economy and re-election
• Looking ahead, highlights US Baker Hughes rig count, Fed’s...

• Asian equity markets traded cautiously after the rally from the Brexit deal breakthrough petered out and as participants mulled over mixed Chinese data
• Chinese economic growth slowed to the weakest pace since 1992, although Q/Q and YTD GDP figures matched analysts’ forecasts, while IP surpassed estimates
• UK rebel Labour MPs were said to be considering backing PM Johnson's Brexit deal if workers' and other rights are written into UK law
• Looking ahead, highlights US Baker Hughes rig count, Fed’s...

• EU and UK have reached a Brexit deal, sources indicate DUP against it; no word from DUP Leader Foster yet
• Sterling is stronger with Cable reaching just shy of 1.30 at best; other G10 currencies are firmer vs. USD
• There will be no discussions on further Turkey sanctions during the European Commission summit, according to a senior EU officials
• Looking ahead highlights include, US Housing Permits & Starts, Philadelphia Fed, Industrial Production and EIA Weekly Stocks, EU Council Summit Begins,...

• Asian equity markets traded mixed after the lacklustre tone rolled over from Wall St where all majors finished with marginal losses
• UK PM Johnson told the 1922 Committee that the UK will still leave deal or no deal on 31st October if a deal cannot be reached
• EU sources stated that a level playing field, customs arrangements and NI consent all have been agreed in the EU/UK talks, although VAT provisions are not done yet
• US President Trump suggested the Phase 1 of the US-China trade deal is moving...

• European bourses are mixed but little changed overall as sentiment remains choppy, FTSE underperforms on ongoing GBP strength
• EU’s Barnier is optimistic a deal can be reached today, but EU sources state there is now not enough time to formally sign a deal at tomorrow’s summit; DUP remain the critical voice at present
• In FX, a volatile session for GBP thus far with the remaining G10 currencies mixed vs. USD; debt complex is bid across the board
• US House passed a bill aimed at supporting the Hong Kong...

• Asian equity markets traded higher after taking the impetus from the gains across global peers
• A large split reportedly opened up among Tory Eurosceptics whether to back PM Johnson's Brexit plan with some in the ERG supporting it, whilst others spoke out against it
• Reports are now talking about an effective deadline of 1300BST for a Brexit deal to be agreed in Brussels
• China urged US lawmakers to stop interfering and threatened to retaliate with strong measures after the US House passed a bill aimed...

• European indices are firmer this morning, though sentiment has been impacted by US-China rhetoric
• Reports indicate China will struggle to purchase USD 50bln of US agri products annually, unless retaliatory tariffs are removed
• Mixed comments from EU’s Barnier stating that a Brexit deal is possible this week although sources note that the latest proposals are not enough
• DXY is mixed vs. G10 peers, with GBP and JPY outperforming and the debt complex is firmer thus far
• Looking ahead highlights...