• Major European bourses are cautious as the US/China trade front positivity abates slightly
• In FX, DXY is firmer above 98.000, AUD subdued by SOMP, PBoC set USD/CNY fix below 7.00
• Iranian Air Defences have reportedly shot down a drone on the edge of Persian Gulf, US defence Official said no reports of a US drone being shot down
• Looking ahead, highlights include Labour Market Report; US University of Michigan Sentiment, Baker Hughes Rig Count; Fed’s Bostic, Williams, Daly, Brainard, Moody’s on...

• Asian bourses traded mixed as the region failed to sustain the momentum from the record levels on Wall St
• US and China sources noted that both sides want to have a Phase 1 trade deal down on paper by the end of next week
• However, source reports stated the US plan to roll back China tariffs faces fierce internal opposition, no final decision has been made
• Chinese trade figures topped estimates but continued to show a contraction in both...

• European bourses are higher as risk sentiment derives support from the trade flow in early hours
• China and US have agreed to cancel existing tariffs in different phases, MOFCOM said; noting the magnitude of tariff cancellations for Phase 1 can be negotiated if a deal is reached
• Debt complex is significantly subdued on the risk-on tone, USD/CNH drops further below the 7.0 mark
• Looking ahead, highlights include, US Initial Jobless Claims and Consumer Credit, BoE Rate Decision, MPR & Press...

• Asian equity markets traded indecisively as they took their cue from the similar performance of their US peers
• US President Trump meeting with Chinese President Xi to sign a trade deal could be delayed until December as discussions over terms and venue continue
• Senior US administration official said that the US is mulling a Trump-Xi meeting to sign an interim trade deal after the NATO summit in London in early December (3rd-4th)
• Looking ahead, highlights include German Industrial Output, Chinese FX...

• Major European bourses are little changed thus far, in a relatively quiet EU session
• Chinese President Xi's visit to Brazil next week may be too soon to sign a Phase One trade deal with the US., SCMP
• Iranian President Rouhani says nuclear site Fordow will "soon be back to full production"; follows reports that they have begun injecting gas into the facility
• FX complex is uninspiring with the USD marginally softer overall,...

• Asian equities traded lacklustre following a flat finish on Wall St where the major indices remained near record highs
• Participants await the next developments in the trade saga and whether the US succumbs to China’s demands to roll-back tariffs
• Brexit Party leader Farage is reportedly in discussions with certain Eurosceptic Conservatives over withdrawing rival Brexit Party candidates at the upcoming general election
• DXY slightly eased back from the 98.00 level but held on to the majority of the...

• European bourses are firmer in risk-on trade this morning following the positive US-China rhetoric
• US reportedly considers dropping some tariffs on China with the White House said to mull whether to roll back levies on USD 112bln of Chinese imports which were introduced at 15% on September 1st
• US National Security Adviser O’Brien stated that US President Trump invited Chinese President Xi to the US if the two sides are ready to sign the phase one agreement; is...

• Asian equity markets were higher as the region sustained the momentum from Wall St where all major US indices posted record highs on the continued US-China trade optimism
• FT reports that the US is mulling rolling back the 15% tariffs on USD 112bln of Chinese imports that took effect from September 1st
• However, doubts remain over whether or not US President Trump would be willing to support such a move
• Looking ahead, highlights include UK Markit Services PMI, EZ PPI, US International Trade, Markit...

• Asian equity markets kick-started the week on the front-foot following a strong performance from Wall St., Japan was away on holiday
• SCMP opinion piece noted that China might make further compromises, but the Phase 1 deal does not provide any incentive for a more comprehensive agreement
• US Commerce Secretary Ross suggested the US may not need to impose auto tariffs later this month
• In FX, DXY is firmer, GBP, EUR, CAD, JPY and CHF are softer,...

• Asian equity markets kick-started the week on the front-foot following a strong performance from Wall St., Japan was away on holiday
• US Commerce Secretary Ross said they are very far along in Phase 1 of the US-China trade deal, whilst USTR Lighthizer and WH Trade Adviser Navarro highlighted constructive talks with China
• SCMP opinion piece noted that China might make further compromises, but the Phase 1 deal does not provide any incentive for a more comprehensive...

• European Cash indices are a touch firmer but little changed as markets await the US Jobs report
• Chinese Caixin Manufacturing PMI beat Exp.; foreign ministry says reports of a US/China leaders meeting in Macau is speculation
• US Secretary of State Pompeo said US is to impose new sanctions and nuclear curbs on Iran
• FX complex is little changed overall vs. a slightly softer USD
• Looking ahead highlights include US Labour Market Report, Construction Spending and ISM; Fed’s Clarida, Williams,...

• Asian equity markets mostly staged a turnaround from the weak Wall St. lead, China outperformed whilst Nikkei 225 lagged
• In FX, USD held onto recent losses, JPY was marginally firmer, antipodeans welcomed above-forecast China Caixin Manufacturing PMI
• US Secretary of State Pompeo said US is to impose new sanctions and nuclear curbs on Iran
• Looking ahead, highlights include Swiss CPI, UK Manufacturing PMI, US Labour Market Report, Construction...

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...

• MON: Eurozone M3 Money Supply, US Good Trade Balance, Dallas Fed Manufacturing Business Index.
• TUE: Tokyo CPI, German Import Price Index, US S&P Case-Shiller, CB Consumer Confidence, US Pending Home Sales.
• WED: Australian CPI, Swedish Confidence, German Labour Market Report, Regional and National CPI, Consumer Confidence (F), ADP Employment, BoC Rate Decision, FOMC Rate Decision.
• THU: Australian Building Approvals, Chinese Manufacturing...

• 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...