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17/11/22 Briefing

The S&P 500 futures are down 34 points and are trading 0.9% below fair value. The Nasdaq 100 futures are down 107 points and are trading 0.9% below fair value. The Dow Jones Industrial Average futures are down 226 points and are trading 0.7% below fair value.

Carryover concerns about the post-CPI rally running its course weigh on the equity futures market this morning. Additionally, worries that the economic environment and earnings estimates will deteriorate further in coming months have created some reservations as well.

Republicans officially captured control of the House of Representatives following last week's election, according to CNN. It is expected the House breakdown will be 221-214 in favor of Republicans once all votes are counted, according to NBC.

Russia renewed the Ukraine grain deal, according to The Wall Street Journal.

Treasury yields are climbing this morning. The 2-yr note yield is up three basis points to 4.39% and the 10-yr note yield is up five basis points to 3.74%.

Energy complex futures trade in mixed fashion. WTI crude oil futures are down 2.0% to $83.85/bbl and natural gas futures are up 1.4% to $6.70/mmbtu.

In corporate news:

  • Norwegian Cruise Line (NCLH 16.74, -0.85, -4.83%): Credit Suisse downgraded to Underperform from Outperform

  • NVIDIA (NVDA 16.74, -0.85, -4.83%): misses by $0.12, beats on revs; guides Q4 revs below consensus

  • Cisco (CSCO 46.44, +2.05, +4.62%): beats by $0.02, beats on revs; guides JanQ EPS in-line, revs above consensus; guides FY23 EPS in-line, revs in-line

  • Bath & Body Works (BBWI 37.82, +6.69, +21.49%): beats by $0.20, beats on revs; guides Q4 EPS in-line, expects Q4 revs to be down mid-single to low-double digits yr/yr

  • Alibaba (BABA 77.69, -0.47, -0.60%): beats by RMB1.32, reports revs in-line; extends share repurchase program

  • Macy's (M 21.31, +1.60, +8.12%): beats by $0.33, reports revs in-line; raises FY23 EPS guidance, reaffirms FY23 revs guidance; Q3 comps -3.1% on owned basis

  • Kohl's (KSS 28.61, -1.19, -3.99%): beats by $0.07, beats on revs; will not provide Q4 guidance and withdraws FY22 guidance

  • Starbucks (SBUX 96.25, -0.82, -0.84%): Workers at 100 Starbucks locations plan to strike on Red Cup Day, according to CNBC.

  • BJ's Wholesale (BJ 80.60, +2.24, +2.86%): beats by $0.15, beats on revs; guides FY23 EPS above consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: -1.2%, China's Shanghai Composite: -0.2%, India's Sensex: -0.4%, South Korea's Kospi: -1.4%, Australia's ASX All Ordinaries: +0.2%.

  • In economic data:

  • China's October FDI 14.4% yr/yr (last 15.6%) o Japan's October trade deficit JPY2.30 trln (expected deficit of JPY2.23 trln; last deficit of JPY2.04 trln). October Imports 53.5% yr/yr (expected 49.7%; last 45.9%) and Exports 25.3% yr/yr (expected 28.1%; last 28.9%)

  • Hong Kong's October Unemployment Rate 3.8% (last 3.9%)

  • Australia's October Employment Change 32,200 (expected 15,000; last -3,800) and full employment change 47,100 (last 10,900). October Unemployment Rate 3.4% (expected 3.6%; last 3.5%) and Participation Rate 66.5% (expected 66.6%; last 66.5%)

  • New Zealand's Q3 Input PPI 0.8% qtr/qtr (expected 2.6%; last 3.1%) and Output PPI 1.6% qtr/qtr (expected 2.1%; last 2.4%)

  • Singapore's October trade surplus $4.07 bln (last surplus of $5.78 bln). October non-oil exports -3.7% m/m (expected -2.3%; last -3.9%); -5.6% yr/yr (expected -0.6%; last 3.1%)


  • In news:

  • Bank of Japan Governor Kuroda repeated that current inflation is the result of cost push factors and that the BoJ will continue supporting the economy with easing. Another BoJ official said that it is too early to talk about tightening policy.

  • The Japanese government is reportedly considering raising taxes on electric vehicles.

  • Moody's commented on China's property sector, noting that the outlook remains negative since government support will not have an immediate impact.



  • Major European indices trade in the red. STOXX Europe 600: -0.5%, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.7%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -1.0%.

  • In economic data:

  • Eurozone's October CPI 1.5% m/m, as expected (last 1.2%); 10.6% yr/yr (expected 10.7%; last 9.9%). October Core CPI 0.6% m/m, as expected (last 1.0%); 5.0% yr/yr, as expected (last 4.8%). September Construction Output 0.09% m/m (last -0.99%)

  • Italy's September trade deficit EUR6.45 bln (last deficit of EUR9.51 bln)

  • Spain's September trade deficit EUR6.98 bln (last deficit of EUR7.94 bln)

  • Swiss October trade surplus CHF4.14 bln (last surplus of CHF4.19 bln)


  • In news:

  • Year-over-year CPI and Core CPI readings for the eurozone accelerated to fresh highs for the year in October.

  • British Chancellor Hunt is delivering the Autumn Budget Statement today.

  • Press reports speculated that the European Central Bank may opt for a 50-bps rate hike instead of 75 bps at the December meeting.

  • Bank of France Governor Villeroy de Galhau said that a rate range around 2.00% in December will likely be seen as a normal range.

  • Steelmaker Thyssenkrupp will offer its first dividend in four years, but also warned that sales and profits will face renewed pressure in 2023.



U.S. equity futures:

  • S&P 500 Futures: -34 @ 3,925

  • DJIA Futures: -263 @ 33,291

  • Nasdaq 100 Futures: -106 @ 11,593

Overseas:

  • Europe: DAX -0.1%, FTSE -0.7%, CAC -0.7%

  • Asia: Nikkei -0.4%, Hang Seng -1.2%, Shanghai Composite -0.2%

Commodities:

  • Crude Oil -1.76 @ 83.83

  • Nat Gas +0.132 @ 6.332

  • Gold -10.10 @ 1765.70

  • Silver -0.472 @ 21.052

  • Copper -0.0485 @ 3.725

Earnings/Guidance:

  • Alibaba ( BABA 1.44% ) beats by RMB1.32, reports revs in-line; extends share repurchase program

  • Bath & Body Works ( BBWI 7.64% ) beats by $0.20, beats on revs; guides Q4 EPS in-line, expects Q4 revs to be down mid-single to low-double digits yr/yr

  • BJ's Wholesale ( BJ 0.14% ) beats by $0.15, beats on revs; guides FY23 EPS above consensus

  • Bowlero ( BOWL 1.03% ) reports Q1 (Sep) earnings, beats on revs, comps of +19.9%

  • Brady ( BRC 0.58% ) beats by $0.02, reports revs in-line; reaffirms FY23 EPS guidance

  • BrightView ( BV 1.64% ) misses by $0.01, reports revs in-line; guides Q1 revs below consensus

  • Camtek ( CAMT 4.01% ) beats by $0.01, reports revs in-line

  • Cellebrite DI ( CLBT 0.81% ) misses by $0.01, reports revs in-line

  • Cisco ( CSCO 1.14% ) beats by $0.02, beats on revs; guides JanQ EPS in-line, revs above consensus; guides FY23 EPS in-line, revs in-line

  • Copa Holdings ( CPA 0.47% ) beats by $0.23, misses on revs

  • Copart ( CPRT 0.03% ) misses by $0.05, reports revs in-line

  • Dole plc ( DOLE 0.54% ) beats by $0.04, reports revs in-line; guides FY22 revs in-line

  • Global-E Online ( GLBE 5.54% ) reports Q3 (Sep) results, beats on revs; guides Q4 revs below consensus

  • Helmerich & Payne ( HP 2.19% ) misses by $0.03, beats on revs

  • Hillenbrand ( HI 1.90% ) beats by $0.04, beats on revs; guides DecQ EPS below two analyst estimate; guides FY23 EPS in-line, revs above consensus

  • Kohl's ( KSS 7.08% ) beats by $0.07, beats on revs; will not provide Q4 guidance and withdraws FY22 guidance

  • Kulicke & Soffa ( KLIC 4.68% ) beats by $0.21, beats on revs; guides Q1 EPS below consensus, revs below consensus, increases quarterly dividend

  • Macy's ( M 8.07% ) beats by $0.33, reports revs in-line; raises FY23 EPS guidance, reaffirms FY23 revs guidance; Q3 comps -3.1% on owned basis

  • NetEase ( NTES 0.38% ) beats by RMB3.88, reports revs in-line

  • NJ Resources ( NJR 0.64% ) beats by $0.05, beats on revs; guides FY23 EPS in-line

  • NVIDIA ( NVDA 4.54% ) misses by $0.12, beats on revs; guides Q4 revs below consensus

  • Sociedad Quimica y Minera ( SQM 2.61% ) beats on top and bottom lines

  • Siemens AG ( SIEGY ) reports Q4 results; revs rise 18% yr/yr; provides FY23 outlook; proposes dividend raise

  • Sonos ( SONO 5.39% ) beats by $0.01, beats on revs; guides FY23 revs above consensus; authorizes new repurchase program of up to $100 mln; appoints interim CFO Eddie Lazarus to full-time CFO

  • Star Bulk Carriers ( SBLK 3.30% ) misses by $0.03, beats on revs

  • The Children's Place ( PLCE 7.76% ) misses by $0.40, beats on revs; guides Q4 EPS below consensus, revs below two analyst estimate

  • Weibo ( WB 3.52% ) misses by $0.02, misses on revs

News:

  • Republicans officially capture control of House of Representatives following last week's election. Republicans will be able to block President Biden's agenda despite small majority, according to CNN

  • It is expected that House breakdown will be 221-214 in favor of Republicans once all votes are counted, according to NBC News

  • JP Morgan predicted mild US recession in 2023, according to Reuters

  • Guangzhou experiencing record COVID outbreak, according to Financial Times

  • Russia renews Ukraine grain deal, according to the Wall Street Journal

  • Republicans pledge scrutiny regarding financial support for Ukraine, according to Bloomberg

  • UK releases economic plan that includes tax increases and spending reductions

  • Activision Blizzard ( ATVI 0.64% ): Blizzard Entertainment and NetEase (NTES) suspending game services in China

  • Agilent ( A 0.59% ) increases its quarterly dividend 7% to $0.225/share

  • Andersons ( ANDE 2.36% ) announces that Bill Krueger, who was president of trade and processing at the company, has been appointed as COO

  • Arconic ( ARNC 2.21% ) approves two-year share repurchase program, authorizing the repurchase of up to $200 mln of common stock

  • Ardelyx ( ARDX 0.82% ) reports FDA Advisory Committee votes that the benefits of XPHOZAH (tenapanor) outweigh its risks for the control of serum phosphorus in adult patients with chronic kidney disease on dialysis

  • atai Life Sciences N.V. ( ATAI 0.35% ) initiated a clinical study with Massachusetts General Hospital

  • BeiGene ( BGNE 0.93% ) received EC approval of BRUKINSA (zanubrutinib) for the treatment of adult patients with treatment-nave or relapsed/refractory CLL

  • BioNTech ( BNTX 0.71% ) and Pfizer (PFE) Advance Next-Generation COVID-19 Vaccine Strategy with Study Start of Candidate Aimed at Enhancing Breadth of T cell Responses and Duration of Protection

  • BlackSky Technology ( BKSY 0.00% ): National Geospatial Intelligence Agency doubles the value of a five-year economic indicator monitoring contract to $60 mln

  • Castor Maritime ( CTRM 0.00% ) to effect a spin-off of its tanker fleet, resulting in a newly formed subsidiary called Toro Corp.

  • dLocal Limited ( DLO 50.71% ) comments on short seller report; says report contains "numerous inaccurate statements, groundless claims, and speculation"

  • DoorDash ( DASH 4.10% ) and UberEats (UBER): NYC pitching a minimum wage of $23.82/hr by 2025 for app-based food restaurant delivery workers, according to Bloomberg

  • Editas Medicine ( EDIT 6.13% ) announces clinical data from the Phase 1/2 BRILLIANCE trial of EDIT-101

  • Esperion Therapeutics ( ESPR 0.00% ) promotes Ben Halladay to CFO, effective today

  • First Solar ( FSLR 0.66% ) selects Lawrence County, AL as the location for its fourth PV solar module manufacturing facility; represents an investment of approximately $1.1 bln; expected to be commissioned by 2025

  • i3 Verticals ( IIIV 1.94% ) appointed Paul Christians as COO

  • Intl Game Tech. PLC's ( IGT 1.52% ) Canada Solutions signed a five-year contract extension with Loto-Qubec to deliver INTELLIGEN video lottery central system software and related components. The extension will run through September 2027

  • KKR ( KKR 1.90% ) will lead a US$68 mln Series B funding round in Advanced Navigation, a developer of AI robotics and navigation technology

  • Krystal Biotech ( KRYS 1.81% ): Jeune Aesthetics announces nine-month durability of effect in the extension cohort of the PEARL-1 study of KB301

  • Liberty Media ( LSXMA 0.43% ) announces plans to pursue split-off of the Atlanta Braves and its associated real estate development project and the creation of a new Liberty Live Group tracking stock

  • LyondellBasell ( LYB 3.04% ) is evaluating the expansion of its propylene production capacity at its Channelview Complex near Houston, TX

  • Marinus Pharmaceuticals ( MRNS 3.97% ) has entered into a collaboration and supply agreement with Tenacia Biotechnology

  • Markel Corp ( MKL 0.60% ) announces that Thomas Gayner will become sole CEO upon retirement of Richard R. Whitt on January 1, 2023

  • Matthews ( MATW 1.29% ) increase its quarterly dividend 4.5% to $0.23/share

  • Microsoft ( MSFT 0.10% ) is bullish on Asia, according to CNBC

  • Moog (MOG.A) announces CEO transition; company appoints Patrick Roche to succeed John Scannell, who will retire on February 1, 2023

  • PennantPark Investment ( PNNT 0.82% ) increases quarterly distribution by 10% to $0.165/share; also reports Q4 results, including 18% decrease in net investment income to $9.2 mln

  • Performance Food Group ( PFGC 1.03% ) announces a share repurchase program for up to $300 mln of company's common stock

  • Petrobras ( PBR 3.26% ) cutting liquefied petroleum gas sales prices for distributors

  • Post ( POST 3.08% ) promotes former Treasurer Matt Mainer to CFO; promotes former CFO Jeff Zadoks to COO; both effective December 1

  • Regeneron Pharma ( REGN 0.95% ) and CytomX Therapeutics (CTMX) announce collaboration and licensing agreement for bispecific cancer therapies

  • Robinhood Markets ( HOOD 8.18% ) reports October operating data; Monthly Active Users up 0.3 mln from end of September

  • Starbucks ( SBUX 0.78% ): Workers at 100 Starbucks locations plan to strike on Red Cup Day, according to CNBC

  • Target ( TGT 13.14% ) Unveils Biggest Black Friday Week Sale Ever

  • Tesla ( TSLA 3.86% ): Board member James Murdoch commented that CEO Elon Musk has in the past few months identified a potential successor for the role of CEO, according to Reuters

  • TSMC ( TSM 1.26% ) will produce Qualcomm (QCOM) flagship chips, according to Digitimes

  • Vale S.A. ( VALE 3.73% ) announces Sol do Cerrado solar project start-up

M&A:

  • Booking Holdings ( BKNG 0.59% ): EU Commission opens in-depth investigation into the proposed acquisition of eTraveli by Booking

  • Curtiss-Wright ( CW 0.42% ) completes acquisition of Keronite Group for $35 mln in cash; Keronite expected to generate sales of about $9 mln in 2022 and is expected to be neutral to EPS in first full year of ownership

  • Diamondback Energy ( FANG 4.82% ) enters into definitive agreement to acquire all leasehold assets and related assets of Lario Permian; transaction expected to be immediately accretive to all relevant 2023/2024 metrics

  • Globant ( GLOB 2.51% ) announces the acquisition of eWave; financial terms were not disclosed

  • Goal Acquisitions Corp ( PUCK 0.10% ): Digital Virgo will go public via business combination with PUCK

  • Stellantis ( STLA 0.27% ) acquires aiMotive, an artificial intelligence and autonomous driving start-up

  • Uranium Royalty ( UROY 8.90% ) acquires U.S. Uranium Royalty Portfolio from Anfield Energy

Syndicate:

  • DZS Inc. ( DZSI 1.94% ) prices offering of 3,377,315 shares of common stock at $11.50 per share

  • Ormat Tech ( ORA 1.23% ) prices offering of 3.75 mln shares of common stock at $90.00 per share

  • Privia Health ( PRVA 11.46% ) prices secondary offering of 5.0 mln shares of common stock at $23.50 per share

  • Tenaya Therapeutics ( TNYA 8.87% ) to offer and sell $75 mln of shares of common stock

  • Uranium Energy ( UEC 5.83% ) files mixed securities shelf offering

  • Wolfspeed ( WOLF 6.13% ) prices upsized private offering of $1,525 mln of its 1.875% Convertible Senior Notes due 2029 (previouslly $1,300 mln); expected to result in ~ $1,497.5 mln in net proceeds

IPOs:

  • Expect to Price:

  • No IPOs expected.


Gapping Up/Down

  • Gapping up:

  • ARDX +77%, BBWI +21.1%, CTRM +7.2%, CPA +6.2%, SONO +3.9%, CSCO +3.5%, SQM +3.3%, KKR +3.1%, DOLE +2.7%, ARNC +1.9%, NVDA +1.6%, HOOD +1.4%, ESPR +1%, PBR +0.9%


  • Gapping down:

  • TNYA -20.1%, DZSI -14.9%, BNOX -13.2%, GLBE -11.3%, ORA -9%, SI -7.5%, MKL -4.6%, NTES -4.3%, BOWL -3.8%, WB -3.4%, SBLK -3.3%, CPRT -3.3%, KLIC -2.4%, HP -1.2%, ATVI -1.1%, UBER -1%, UEC -0.8%, DASH -0.8%, FSLR -0.7%



Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

  • Allete (ALE) upgraded to Neutral from Underweight at JP Morgan; tgt $65

  • Ardelyx (ARDX) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $8

  • Banco Bradesco (BBD) upgraded to Overweight from Neutral at JP Morgan


  • Downgrades:

  • Aveanna (AVAH) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $2

  • IQVIA (IQV) downgraded to Neutral from Buy at Citigroup; tgt lowered to $245

  • Kinnate BioPharma (KNTE) downgraded to Hold from Buy at Stifel; tgt lowered to $11

  • Quest Diagnostics (DGX) downgraded to Sell from Neutral at Citigroup; tgt lowered to $125

  • REE Automotive (REE) downgraded to Neutral from Buy at BTIG Research

  • Science Applications (SAIC) downgraded to Hold from Buy at Jefferies; tgt $110

  • Two Harbors Investment (TWO) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $16


  • Others:

  • Dragonfly Energy (DFLI) initiated with a Buy at Stifel; tgt $12

  • Edgewell Personal Care (EPC) initiated with a Buy at Canaccord Genuity; tgt $48

  • e.l.f. Beauty (ELF) initiated with a Buy at Canaccord Genuity; tgt $63

  • Energizer (ENR) initiated with a Hold at Canaccord Genuity; tgt $34

  • Energy Recovery (ERII) initiated with a Buy at B. Riley Securities; tgt $28

  • Estee Lauder (EL) initiated with a Hold at Canaccord Genuity; tgt $228

  • Grove Collaborative Holdings (GROV) initiated with a Buy at Canaccord Genuity; tgt $2

  • Helen of Troy (HELE) initiated with a Buy at Canaccord Genuity; tgt $120

  • KemPharm (KMPH) initiated with an Overweight at Cantor Fitzgerald; tgt $20

  • Middleby (MIDD) initiated with a Buy at Canaccord Genuity; tgt $171

  • Olaplex (OLPX) initiated with a Buy at Canaccord Genuity; tgt $8

  • Prestige Consumer (PBH) initiated with a Buy at Canaccord Genuity; tgt $71

  • Solo Brands (DTC) initiated with a Buy at Canaccord Genuity; tgt $7

  • Theratechnologies (THTX) initiated with an Overweight at Cantor Fitzgerald; tgt $9

  • Thorne HealthTech (THRN) initiated with a Buy at Canaccord Genuity; tgt $5.50

  • Traeger (COOK) initiated with a Buy at Canaccord Genuity; tgt $6

  • Vaxcyte (PCVX) initiated with a Buy at BTIG Research; tgt $69

  • YETI Holdings (YETI) initiated with a Buy at Canaccord Genuity; tgt $58


Upcoming Events:

  • Econ Data:

  • 08:30 ET: Housing Starts for Oct (Briefing.com Consensus 1420K; Prior 1439K)

  • 08:30 ET: Building Permits for Oct (Briefing.com Consensus 1518K: Prior 1564K)

  • 08:30 ET: Initial Claims for Nov 12 (Briefing.com Consensus 222K; Prior 225K)

  • 08:30 ET: Continuing Claims for Nov. 5 (Briefng.com Consensus NA; Prior 1493K)

  • 08:30 ET: Philadelphia Fed Index for Nov (Briefing.com Consensus -5.0; Prior -8.7)

  • 10:30 ET: EIA Natural Gas Inventories for Nov 12 (Briefing.com Consensus NA; Prior +79 bcf)


  • Earnings:

  • Monday (Nov 14)

  • Morning: MASS ACM YOU CGEN XRAY MNDY OTLY TWKS TSEM TSN

  • Afternoon: AZTA DLO HLLY JJSF SHLS VVV


  • Tuesday (Nov 15)

  • Morning: ARMK BERY DAVA ENR AQUA HD HUYA DNUT SE TME WKME WMT

  • Afternoon: AAP VREX


  • Wednesday (Nov 16)

  • Morning: LOW ONON SR TGT TJX

  • Afternoon: BBWI CSCO CPA CPRT GLBE HP HI KLIC NVDA SONO


  • Thursday (Nov 17)

  • Morning: BABA BJ BRC BV CAMT CLBT DOLE KSS M NTES NJR WB

  • Afternoon: AMAT BRBR DLB ESE FTCH GPS GLOB KEYS PANW POST ROST STNE UGI WSM WWD


  • Friday (Nov 18)

  • Morning: ATKR BKE FL JD SPB TWST



Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng -1.2%, Shanghai Composite -0.2%

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Bank of Japan Governor Kuroda repeated that current inflation is the result of cost push factors and that the BoJ will continue supporting the economy with easing. Another BoJ official said that it is too early to talk about tightening policy. The Japanese government is reportedly considering raising taxes on electric vehicles. Moody's commented on China's property sector, noting that the outlook remains negative since government support will not have an immediate impact.

  • In economic data:

  • China's October FDI 14.4% yr/yr (last 15.6%) o Japan's October trade deficit JPY2.30 trln (expected deficit of JPY2.23 trln; last deficit of JPY2.04 trln). October Imports 53.5% yr/yr (expected 49.7%; last 45.9%) and Exports 25.3% yr/yr (expected 28.1%; last 28.9%)

  • Hong Kong's October Unemployment Rate 3.8% (last 3.9%)

  • Australia's October Employment Change 32,200 (expected 15,000; last -3,800) and full employment change 47,100 (last 10,900). October Unemployment Rate 3.4% (expected 3.6%; last 3.5%) and Participation Rate 66.5% (expected 66.6%; last 66.5%)

  • New Zealand's Q3 Input PPI 0.8% qtr/qtr (expected 2.6%; last 3.1%) and Output PPI 1.6% yr/yr (expected 2.1%; last 2.4%)

  • Singapore's October trade surplus $4.07 bln (last surplus of $5.78 bln). October non-oil exports -3.7% m/m (expected -2.3%; last -3.9%); -5.6% yr/yr (expected -0.6%; last 3.1%)


---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: -1.2%

  • China's Shanghai Composite: -0.2%

  • India's Sensex: -0.4%

  • South Korea's Kospi: -1.4%

  • Australia's ASX All Ordinaries: +0.2%

---FX---

  • USD/JPY: +0.3% to 139.83

  • USD/CNH: +0.8% to 7.1604

  • USD/INR: +0.2% to 81.60

Europe: DAX -0.1%, FTSE -0.7%, CAC -0.7%

Major European indices trade in the red. Year-over-year CPI and Core CPI readings for the eurozone accelerated to fresh highs for the year in October. British Chancellor Hunt is delivering the Autumn Budget Statement today. Press reports speculated that the European Central Bank may opt for a 50-bps rate hike instead of 75 bps at the December meeting. Bank of France Governor Villeroy de Galhau said that a rate range around 2.00% in December will likely be seen as a normal range. Steelmaker Thyssenkrupp will offer its first dividend in four years, but also warned that sales and profits will face renewed pressure in 2023.

  • In economic data:

  • Eurozone's October CPI 1.5% m/m, as expected (last 1.2%); 10.6% yr/yr (expected 10.7%; last 9.9%). October Core CPI 0.6% m/m, as expected (last 1.0%); 5.0% yr/yr, as expected (last 4.8%). September Construction Output 0.09% m/m (last -0.99%)

  • Italy's September trade deficit EUR6.45 bln (last deficit of EUR9.51 bln)

  • Spain's September trade deficit EUR6.98 bln (last deficit of EUR7.94 bln)

  • Swiss October trade surplus CHF4.14 bln (last surplus of CHF4.19 bln)


---Equity Markets---

  • STOXX Europe 600: -0.5%

  • Germany's DAX: -0.1%

  • U.K.'s FTSE 100: -0.7%

  • France's CAC 40: -0.7%

  • Italy's FTSE MIB: -0.7%

  • Spain's IBEX 35: -1.0%

---FX---

  • EUR/USD: -0.5% to 1.0341

  • GBP/USD: -0.7% to 1.1824

  • USD/CHF: +0.5% to 0.9485


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