- US stocks shrugged off the initial weakness seen at the open to close in the green with the attention on earnings season amid a relatively catalyst-light session. Most sectors gained and advances were led by outperformance in Utilities, Real Estate and Financials with the latter buoyed by strong MS earnings, while Communication, Consumer staples and Technology lagged alongside losses in Meta (META) shares.
- USD mildly strengthened amid weakness in its major peers as opposed to any dollar-specific updates, while there was a lack of Fed speakers and very little on the calendar stateside aside from US Import and Export Prices which were softer than expected but failed to impact the dollar.
- Looking ahead, highlights include Japanese Trade Data, Australian Employment Change & Unemployment Rate, Singapore Non-Oil Exports, China's Housing Ministry, MoF, and PBoC Briefing, Supply from Japan.
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LOOKING AHEAD
- Highlights include Japanese Trade Data, Australian Employment Change & Unemployment Rate, Singapore Non-Oil Exports, China's Housing Ministry, MoF, and PBoC Briefing, Supply from Japan.
- Click for the Newsquawk Week Ahead.
US TRADE
- US stocks shrugged off the initial weakness seen at the open to close in the green with the attention on earnings season amid a relatively catalyst-light session. Most sectors gained and advances were led by outperformance in Utilities, Real Estate and Financials with the latter buoyed by strong MS earnings, while Communication, Consumer staples and Technology lagged alongside losses in Meta (META) shares.
- SPX +0.47% at 5,842, NDX +0.07% at 20,174, DJIA +0.79% at 43,078, RUT +1.64% at 2,287.
- Click here for a detailed summary.
DATA RECAP
- US Export Prices MM (Sep) -0.7% vs. Exp. -0.4% (Prev. -0.7%, Rev. -0.9%)
- US Import Prices MM (Sep) -0.4% vs. Exp. -0.4% (Prev. -0.3%, Rev. -0.2%)
FX
- USD mildly strengthened amid weakness in its major peers as opposed to any dollar-specific updates, while there was a lack of Fed speakers and very little on the calendar stateside aside from US Import and Export Prices which were softer than expected but failed to impact the dollar.
- EUR slightly softened against the dollar after a failed attempt to return to the 1.0900 handle with participants now looking ahead to EU CPI data and the ECB policy decision.
- GBP was heavily pressured and GBP/USD gave back the 1.3000 status following the softer-than-expected UK CPI data.
- JPY resumed its weakening trend which saw USD/JPY approach closer towards 150.00 but stalled short of the key aforementioned level.
FIXED INCOME
- T-notes were marginally higher in the aftermath of soft New Zealand and UK inflation reports ahead of US retail sales and ECB on Thursday.
COMMODITIES
- Oil prices were choppy amid reports of an oil spill in Iran but ultimately settled marginally in the red.
- US Private inventory data (bbls): Crude -1.58mln (exp. +1.8mln), Gasoline -5.9mln (exp. -1.5mln), Distillates -2.7mln (exp. -2.2mln), Cushing +0.4mln.
- Iraq set November Basrah medium crude selling price to Asia at plus USD 0.40/bbl to Oman/Dubai average and to Europe at minus USD 5.00/bbl vs dated Brent, while it set the price to America at minus USD 1.10/bbl vs ASCI.
- Qatar set the December term price for Al-Shaheen oil at USD 1.93bbl above Dubai quotes which is down vs. November, according to Reuters sources.
GEOPOLITICAL
MIDDLE EAST
- Israel’s plan to respond to Iran’s attack is ready, according to CNN sources.
- Israeli PM Netanyahu said he held an emergency discussion on increasing aid to Gaza, according to Reuters citing three Israeli officials.
- Israeli officials have been assuring their US counterparts that Israel will act quickly to improve the dire humanitarian situation in Gaza following an ultimatum from the Biden administration, according to two Israeli officials cited by Axios.
- Iran's Atomic Energy Organisation spokesperson said an attack on an Iranian nuclear site is "highly unlikely" and any damage would be "quickly compensated".
- US officials expect Israel’s counterattack on Iran will come before US Election Day, according to CNN.
- Qatari PM said there has been no engagement at all from all parties in the last three to four weeks regarding Gaza ceasefire talks.
OTHER
- Slovakian PM Fico sees a high probability of the Ukraine war ending soon and is looking for a hint at an EU meeting.
- Russia said it will retaliate against Norway in a painful way following Oslo's decision to cut Russian diplomatic staff.
ASIA-PAC
NOTABLE HEADLINES
- Chinese President Xi said they will strive to excel in Q4 economic efforts and aim to meet its annual development goal.
- PBoC is to push forward financial technology in some regions and will be providing additional loans for tech companies, according to Bloomberg.
- China's Cyberspace regulator called for a systematic examination of the risks of Intel (INTC) products to effectively safeguard China’s national security and the legitimate rights and interests of Chinese consumers.
- Key US lawmakers reportedly push to cut off Huawei vendors from US chip gear, according to Bloomberg.
- BoJ announced the continuation of relaxation of terms and conditions for securities lending facility for cheapest-to-deliver issues.
EU/UK
NOTABLE HEADLINES
- UK Chancellor Reeves will use her Budget to increase capital gains tax on the sale of shares and other assets but will not change the rate for second homes, according to The Times. It was also reported that Reeves's Budget is set to be the largest tax raiser in history in which she may look to increase fuel duty and faces backlash from Cabinet colleagues, according to The Telegraph.
- Italy's Economy Minister Giorgetti said the government reached a deal with the EU over a seven-year adjustment path for deficit and debt.
DATA RECAP
- UK CPI YY (Sep) 1.7% vs. Exp. 1.9% (Prev. 2.2%)
- UK Core CPI YY (Sep) 3.2% vs. Exp. 3.4% (Prev. 3.6%)
