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Writer's pictureSimon Charles Hooper

18/10/23 Briefing


The S&P 500 futures are down 18 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 90 points and are trading 0.6% below fair value. The Dow Jones Industrial Average futures are down 69 points and are trading 0.2% below fair value.

Stocks futures indicate a lower open as participants digest another batch of earnings news that featured better than expected results from Dow component Procter & Gamble (PG) and a Q4 profit warning from United Airlines (UAL).

Geopolitical angst, however, appears to be at the heart of today's weakness after the summit between President Biden and Arab leaders was called off following the Gaza hospital bombing yesterday. WTI crude oil futures are up 2.3% to $88.69/bbl while Brent crude futures are up 2.2% to $91.86/bbl.

The 2-yr note yield is down two basis points to 5.18% and the 10-yr note yield is down four basis points to 4.81%.

China's Q3 GDP grew by 4.9% versus an expected 4.4%. Industrial production and retail sales were both better than expected in September. The U.S. economic calendar features September housing starts and building permits at 8:30 a.m. ET.

Separately, the House will hold another vote for Speaker today at 11:00 ET, according to The New York Times, after Rep. Jim Jordan (R-OH) failed to obtain the required 217 votes in the first ballot yesterday.

In corporate news:

  • United Airlines (UAL 38.04, -2.08, -5.2%): beats by $0.27, reports revs in-line; issues weaker than expected guidance for Q4

  • Procter & Gamble (PG 148.70, +2.44, +1.7%): beats by $0.11, beats on revs; reaffirms FY24 EPS guidance, guides FY24 revs in-line

  • Travelers (TRV 169.50, +0.14, +0.1%): reports Q3 (Sep) results, revs in-line

  • J.B. Hunt Transport (JBHT 189.97, -6.04, -3.1%): misses by $0.03, reports revs in-line

  • Microsoft (MSFT 333.32, +1.26, +0.4%): preparing to bring Amazon (AMZN) as a customer of its 365 cloud tools in a $1.0 bln five-year deal, according to Business Insider

  • NVIDIA (NVDA 433.40, -5.98, -1.4%): disclosed last night it does not anticipate that the additional restrictions will have a near-term meaningful impact on its financial results; Citi cut its price target to $575 from $630 and maintained a Buy rating

  • U.S. Bancorp (USB 34.60, -0.29, -0.8%): beats by $0.09, reports revs in-line; guides Q4 revs below consensus

  • Citizens Financial Group (CFG 26.30, -0.80, -3.0%): misses by $0.06

  • Morgan Stanley (MS 78.09, -2.24, -2.8%): beats by $0.07, reports revs in-line

  • Abbott Labs (ABT 94.40, +2.26, +2.5%): beats by $0.04, beats on revs; guides FY23 EPS above consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.8%, India's Sensex: -0.8%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: +0.3%.

    • In economic data:

      • China's Q3 GDP 1.3% qtr/qtr (expected 1.0%; last 0.5%); 4.9% yr/yr (expected 4.4%; last 6.3%). September Industrial Production 4.5% yr/yr (expected 4.3%; last 4.5%), September Retail Sales 5.5% yr/yr (expected 4.9%; last 4.6%), September Fixed Asset Investment 3.1% yr/yr (expected 3.2%; last 3.2%), and September Unemployment Rate 5.0% (expected 5.2%; last 5.2%)

      • Australia's September MI Leading Index 0.1% m/m (last 0.0%)


  • In news:

    • The Bank of Japan conducted an unscheduled bond buying operation and there was speculation that the BoJ would raise its inflation forecast for FY23 to 3.0%.

    • An official with China's National Bureau of Statistics said that growth in Q4 would have to be above 4.4% in order for China to hit its annual growth target. The comments were made after the release of better than expected growth figures for Q3.

    • The People's Bank of China reportedly instructed banks to roll over local government loans for a longer term at lower rates.

    • Developer Country Garden appears to have missed its $15 mln coupon payment, which would trigger an offshore default.

    • Reserve Bank of Australia Governor Bullock said that he is a bit more worried about the impact that supply shocks will have on inflation.



  • Major European indices trade in the red. STOXX Europe 600: -0.5%, Germany's DAX: -0.7%, U.K.'s FTSE 100: -0.8%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.7%.

    • In economic data:

      • Eurozone's September CPI 0.3% m/m, as expected (last 0.5%); 4.3% yr/yr, as expected (last 5.2%). September Core CPI 0.2% m/m, as expected (last 0.3%); 4.5% yr/yr, as expected (last 5.3%). August Construction Output -1.1% m/m (last 1.0%)

      • U.K.'s September CPI 0.5% m/m, as expected (last 0.3%); 6.7% yr/yr (expected 6.6%; last 6.7%). September Core CPI 0.5% m/m, as expected (last 0.1%); 6.1% yr/yr (expected 6.0%; last 6.2%). September Input PPI 0.4% m/m (expected 0.9%; last 0.8%) and Output PPI 0.4% m/m (expected 0.3%; last 0.2%). September House Prices 0.2% yr/yr (expected 0.3%; last 0.7%)


  • In news:

    • The U.K.'s CPI showed no sequential deceleration in the yr/yr growth rate for September (6.7%) as rising fuel prices offset lower food prices.

    • British homebuilder Barratt Developments warned of a tough housing market due to low housing availability and high mortgage costs.

    • European Central Bank policymaker Holzmann said that future inflationary shocks could warrant more rate hikes while policymaker de Guindos said that economic activity is expected to remain subdued through the end of 2023.



U.S. equity futures:

  • S&P 500 Futures -16 @ 4,357

  • DJIA Futures: -74 @ 33,923

  • Nasdaq 100 Futures: -80 @ 15,042

Overseas:

  • Europe: DAX -0.7%, FTSE -0.8%, CAC -0.7%

  • Asia: Nikkei UNCH, Hang Seng -0.2%, Shanghai Composite -0.8%

Commodities:

  • Crude Oil +1.90 @ 87.34

  • Nat Gas +0.026 @ 3.105

  • Gold +23.05 @ 1958.75

  • Silver +0.339 @ 23.363

  • Copper +0.0408 @ 3.6193

Earnings/Guidance:

  • ABB Ltd ( ABBNY ) reports Q3 results; revs declined 2% yr/yr

  • Abbott Labs ( ABT â–´ 2.98% ) beats by $0.04, beats on revs; guides FY23 EPS above consensus

  • Ally Financial ( ALLY â–´ 3.23% ) beats by $0.03, misses on revs

  • ASML ( ASML â–¾ 4.06% ) beats by 0.13, misses on revs; guides Q4 revs in-line

  • BHP Group ( BHP â–¾ 2.04% ) reports Q3 production; remains on track to deliver full year production and unit cost guidance at all assets

  • Citizens Financial Group ( CFG â–¾ 3.01% ) misses by $0.06

  • Commerce Bancshares ( CBSH â–¾ 0.59% ) beats by $0.03, reports revs in-line

  • Elevance Health ( ELV â–´ 0.12% ) beats by $0.54, reports revs in-line; guides FY23 EPS above consensus

  • First Horizon ( FHN â–´ 3.73% ) beats by $0.03

  • Fulton Fincl ( FULT â–´ 1.39% ) beats by $0.02

  • Golub Capital ( GBDC â–´ 0.61% ) provides SepQ guidance

  • Hancock Whitney ( HWC â–¾ 2.44% ) beats by $0.08, reports revs in-line

  • Interactive Brokers ( IBKR â–¾ 3.53% ) beats by $0.04, beats on revs

  • J.B. Hunt Transport ( JBHT â–¾ 6.84% ) misses by $0.03, reports revs in-line

  • JinkoSolar's ( JKS â–´ 0.98% ) subsidiary published estimates of certain preliminary unaudited financial results for the nine months ended September 30, 2023

  • Just Eat Takeaway ( JTKWY ) provides Q3 trading update and outlook; launching a new share buyback program of up to EUR 150 million

  • M&T Bank ( MTB â–´ 0.34% ) beats by $0.10

  • Morgan Stanley ( MS â–¾ 6.61% ) beats by $0.07, reports revs in-line

  • NASDAQ ( NDAQ â–´ 4.92% ) beats by $0.02, reports revs in-line

  • Northern Trust ( NTRS â–¾ 5.53% ) misses by $0.01, misses on revs

  • Omnicom ( OMC â–¾ 1.72% ) beats by $0.02, reports revs in-line

  • Pinnacle Finl ( PNFP â–¾ 3.57% ) misses by $0.01, misses on revs

  • Procter & Gamble ( PG â–´ 2.89% ) beats by $0.11, beats on revs; reaffirms FY24 EPS guidance, guides FY24 revs in-line

  • State Street ( STT â–´ 1.89% ) misses by $0.54, misses on revs

  • Stepan Company ( SCL â–´ 5.04% ) misses by $0.12, misses on revs

  • Terex ( TEX â–¾ 7.54% ) announces that John Garrison is retiring as Chairman and CEO effective Jan 1, Simon Meester named next CEO; guides FY23 EPS below consensus

  • Travelers (TRV) reports Q3 (Sep) results, revs in-line

  • United Airlines ( UAL â–¾ 7.56% ) beats by $0.27, reports revs in-line; issues guidance for Q4

  • United Comm Banks ( beats by $0.01

  • U.S. Bancorp ( USB â–¾ 2.81% ) beats by $0.09, reports revs in-line; guides Q4 revs below consensus

  • Vale S.A. ( VALE â–¾ 3.16% ) provides update to its production volume estimate for copper in 2023; sees FY23 Copper Production of 315-325kt

  • Winnebago ( WGO â–´ 0.39% ) beats by $0.23, misses on revs

  • Wintrust Fin ( WTFC â–´ 0.67% ) beats by $0.12, reports revs in-line

  • Woodside Energy Group ( WDS â–´ 0.67% ) provides Q3 update; narrows FY23 production guidance

News:

  • Hundreds of people are dead following airstrike in Gaza. Palestinian officials blamed Israel, but Israel Defense Forces denied involvement, blaming a "failed rocket launch" by the Palestinian Islamic Jihad group, according to CNN

  • House will hold another vote for Speaker today at 11:00 ET, according to the New York Times

  • President Biden plans to ask Congress for $100 bln in Ukraine and Israel aid, according to Bloomberg

  • Fed aiming to introduce proposal to lower debit card swipe fees, according to the Wall Street Journal

  • Albemarle ( ALB â–¾ 7.97% ) has closed on the restructuring of its MARBL joint venture with Mineral Resources Limited after receiving the required regulatory approvals

  • Amazon ( AMZN â–¾ 1.14% ) reaches 10K for its Rivian Automotive (RIVN) fleet, according to Tech Crunch

  • American Eagle ( AEO â–¾ 0.52% ) appoints two executive positions after the departure of its COO; names Sarah Clarke Chief Supply Chain Officer and Valerie van Ogtrop BP of Brand Operations

  • AN2 Therapeutics ( ANTX 0.00% ) has received an exclusive license from the University of Georgia Research Foundation to advance the development of a boron-containing small molecule for Chagas disease

  • Ardelyx ( ARDX â–´ 11.88% ) receives FDA approval for XPHOZAH and amends debt financing agreement with SLR Capital Partners to provide $50 million of additional committed capital

  • AstraZeneca ( AZN â–¾ 5.42% ) receives approval for Soliris in China for the treatment of adults with NMOSD

  • BeiGene ( BGNE â–¾ 1.54% ) announces late-breaking data at ESMO showing Tislelizumab plus Chemotherapy significantly improved overall survival at final analysis in first-line advanced Gastric or Gastroesophageal Junction Adenocarcinoma

  • Bio-Rad Labs ( BIO â–¾ 7.75% ) CFO Ilan Daskal to resign, effective Nov 6

  • Cameco ( CCJ â–´ 0.74% ) announces its Board Chair Ian Bruce passed away on October 15

  • CGI Group ( GIB â–¾ 0.60% ) subsidiary announced the competitive award of a multi-year contract by the General Services Administration's Federal Systems Integration and Management Center

  • Endeavour Silver ( EXK â–¾ 0.20% ) Continues to Intersect High-Grade Mineralization at the Guanacevi Mine including 3.43 g/t Gold and 1,265 g/t Silver for 1,540 g/t Silver Equivalents over 2.2 metres

  • Eneti's ( NETI â–´ 2.23% ) Seajacks UK Limited signed a contract with an undisclosed client to assist with the installation of wind turbines

  • FREYR Battery ( FREY â–¾ 3.41% ) provides Redomiciliation updates; anticipates that the Redomiciliation Transaction will become effective in the fourth quarter of 2023

  • Generation Bio ( GBIO â–¾ 2.09% ) announces breakthrough in its non-viral genetic medicine platform with novel 'Immune-quiet' DNA

  • Gilead Sciences ( GILD â–¾ 0.81% ) Announces New Clinical Trial in Europe to Assess Lenacapavir for HIV Prevention as Part of Landmark Purpose Program

  • Gogo ( GOGO â–¾ 1.29% ) selected by AirSprint Private Aviation to upgrade its Cessna Citation CJ3+ and Embraer aircraft to Gogo 5G

  • HF Sinclair ( DINO â–´ 0.36% ) entered into a Stock Purchase Agreement

  • Illumina ( ILMN â–¾ 2.93% ): Carl Icahn filed a lawsuit against Illumina over proposed acquisition of Grail, according to Bloomberg

  • Intellia Therapeutics ( NTLA â–¾ 2.72% ) announces that the FDA has cleared its Investigational New Drug (IND) application for NTLA-2001 for the treatment of transthyretin (ATTR) amyloidosis with cardiomyopathy

  • Kura Oncology ( KURA â–´ 0.57% ) announces positive results from registration-directed study of Tipifarnib in patients with HRAS mutant HNSCC

  • Lincoln Electric ( LECO â–¾ 2.63% ) increases quarterly cash dividend 11% to $0.71/share from $0.64/share

  • Microsoft ( MSFT â–´ 0.48% ) preparing to bring Amazon (AMZN) as a customer of its 365 cloud tools in a $1.0 bln five-year deal, according to Business Insider

  • Mirati ( MRTX â–¾ 0.04% ) presents late-breaking results evaluating the combination of Adagrasib and Pembrolizumab in first-line Non-Small Cell Lung Cancer

  • Mirum Pharmaceuticals ( MIRM â–¾ 1.49% ) Announces New PDUFA Date for LIVMARLI for the Treatment of Cholestatic Pruritus in Progressive Familial Intrahepatic Cholestasis

  • NVIDIA ( NVDA â–¾ 2.91% ) does not anticipate that the additional restrictions will have a near-term meaningful impact on its financial results

  • NVIDIA ( NVDA â–¾ 2.91% ) Partners With Foxconn to Build Factories and Systems for the AI Industrial Revolution

  • Rhythm Pharmaceuticals ( RYTM â–¾ 0.68% ) presents data from its long-term extension study of setmelanotide showing sustained and deepened BMI reduction in patients with hypothalamic obesity at one year at ObesityWeek 2023

  • Roche Hldg ( RHHBY ): Elecsys HTLV-I/II approved by FDA

  • Roche Hldg ( RHHBY ) unit Genentech's Alecensa Reduces the Risk of Disease Recurrence or Death by an Unprecedented 76% in People With ALK-Positive Early-Stage Non-Small Cell Lung Cancer

  • SAGE Therapeutics ( SAGE â–´ 0.71% ) announces FDA granted SAGE-718 orphan drug designation for the treatment of huntington's disease

  • Sanofi ( SNY â–¾ 0.39% ) reports TZIELD Phase 3 data presented at ISPAD shows potential to slow the progression of Stage 3 type 1 diabetes in newly diagnosed children and adolescents; full data simultaneously published in The NEJM

  • Sight Sciences ( SGHT â–¾ 1.48% ) to reduce its headcount by approximately 10% in plan to reduce operating expenses, improve cost efficiencies, and align its operations for long-term, profitable growth

  • Spirit Aerosystems ( SPR â–´ 26.50% ) and Boeing (BA) entered into Memorandum of Agreement to support production stability

  • Takeda ( TAK â–¾ 1.74% ) Announces Topline Results of Phase 3 ADMIRE-CD II Trial of Alofisel (darvadstrocel) in Complex Crohn's Perianal Fistulas

  • Takeda Pharma ( TAK â–¾ 1.74% ) settles tax dispute with Irish Revenue over break fee received by Shire

  • Tenable ( TENB â–´ 0.09% ) announces that Chubu Electric Power Grid Co. has chosen Tenable OT Security

  • Total ( TTE â–´ 0.22% ) aiming to extend French fuel cap through 2024, according to Bloomberg

  • UCB SA ( UCBJY ): FDA approved BIMZELX (bimekizumab-bkzx) for the treatment of moderate-to-severe plaque psoriasis

  • Viking Therapeutics ( VKTX â–¾ 4.38% ) Presents New Data from Phase 1 Clinical Trial of Dual GLP-1/GIP Receptor Agonist VK2735 in Oral Presentation at ObesityWeek 2023

  • Wallbox's ( WBX â–¾ 10.29% ) Pulsar Chargers GmbH entered into an agreement with ABL GmbH to acquire a majority of the operating assets

  • Y-mAbs Therapeutics ( YMAB â–¾ 1.76% ) Announces U.S. FDA Clearance of Investigational New Drug Application for CD38-SADA

M&A:

  • Freeline Therapeutics ( FRLN â–´ 14.93% ): Majority shareholder Syncona files amended 13D; submitted acquisition proposal for outstanding shares

  • PPG Industries ( PPG â–¾ 1.24% ) divests Traffic Solutions operations in Australia and New Zealand

  • SSR Mining ( SSRM â–´ 0.83% ) to sell its Sunrise Lake Property to Honey Badger Silver in exchange for a 4% net smelter return royalty on the property

  • Talaris Therapeutics ( TALS â–¾ 6.38% ) receives stockholder approval of merger with Tourmaline Bio

  • TreeHouse Foods ( THS â–´ 1.11% ) agrees with J.M. Smucker (SJM) to purchase the brands Bick's, Habitant, Woodman's, and McLarens for approximately $20 mln

Syndicate:

  • Ambrx Biopharma ( AMAM â–¾ 4.95% ) files $300 mln mixed shelf securities offering

  • Bridger Aerospace Group ( BAER â–¾ 30.67% ) commences $70 mln public offering of common stock

  • Clear Channel Outdoor ( CCO â–¾ 1.68% ) signs share purchase agreement to sell its France Business to Equinox Industries

  • Conduit Pharmaceuticals ( CDT â–´ 8.10% ) files for 7,755,710 shares of common stock by selling shareholders; relates to warrants

  • Ultragenyx Pharma ( RARE â–¾ 13.28% ) announces proposed public offering of up to $300 mln of common stocks

IPOs:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • VKTX +9%, TALS +8.2%, FND +8.1%, RYTM +5.9%, FULT +4%, CCO +3.4%, VICR +2.2%, WTFC +2%, HWC +1.5%, GBDC +1.4%, CBSH +1.4%, ARDX +1.2%, LBRT +0.9%, SNY +0.8%, MRTX +0.7%, SSRM +0.6%


  • Gapping down:

    • BAER -6.4%, WAFD -6.3%, MIRM -5.9%, UAL -5.9%, BIO -5.6%, RARE -5.1%, GOGO -4.6%, JBHT -4.1%, SGHT -3.2%, IBKR -3.2%, ASML -2.4%, YMAB -1.9%, LECO -1.8%, NVDA -1.6%, AAL -1.4%, OMC -1.4%, ALK -1.3%, DAL -1.2%, TAK -1.1%, PNFP -1.1%, AEO -0.8%, BHP -0.7%


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

  • Upgrades

    • Broadstone Net Lease (BNL) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $17

    • Dow (DOW) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $59

    • Huntsman (HUN) upgraded to Buy from Underperform at BofA Securities; tgt $27

    • LyondellBasell (LYB) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $107


  • Downgrades:

    • Albemarle (ALB) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $161

    • ArcelorMittal (MT) downgraded to Neutral from Buy at BofA Securities

    • Lithium Americas (LAC) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $7

    • Sherwin-Williams (SHW) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $275

    • Sociedad Quimica y Minera (SQM) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $59


  • Others:

    • CrowdStrike (CRWD) initiated with a Buy at DZ Bank; tgt $215

    • Fortinet (FTNT) initiated with a Hold at DZ Bank; tgt $58

    • Lithium Argentina (LAAC) initiated with a Buy at Deutsche Bank; tgt $11

    • Nu Holdings (NU) initiated with a Buy at Redburn Atlantic; tgt $!!

    • Palo Alto Networks (PANW) initiated with a Buy at DZ Bank; tgt $310


Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for Oct 14 (Briefing.com Consensus NA; Prior NA)

  • 08:30 ET: Housing Starts for Sep (Briefing.com Consensus 1380K; Prior 1283K)

  • 08:30 ET: Building Permits for Sep (Briefing.com Consensus 1448K; Prior 1543K)

  • 10:30 ET: EIA Crude Oil Inventories for Oct 14 (Briefing.com Consensus NA; Prior 10.18M)

  • 14:00 ET: Fed's Beige Book for Oct.

  • 16:00 ET: Net Long-Term TIC Flows for Aug (Briefing.com Consensus NA; Prior $8.8B)

Earnings:

  • Monday (Oct 16)

    • Morning: SCHW

    • Afternoon: ELS


  • Tuesday (Oct 17)

    • Morning: ACI BAC BK ERIC GS JNJ LMT PLD

    • Afternoon: FULT HWC IBKR JBHT OMC PNFP UAL WTFC


  • Wednesday (Oct 18)

    • Morning: ABT ALLY ASML CFG CBSH ELV FHM MTB MS NDAQ NTRS PG STT SCL TRV USB UNF UCBI WGO

    • Afternoon: AA CNS COLB CCI DFS EFX FNB FR KMI LRCX LVS LBRT MRTN NFLX PPG REXR SAP SLG STLD SNV TSLA ZION


  • Thursday (Oct 19)

    • Morning: ALK AAL T AUB BMI BKU BX EWBC FITB FCX GPC HOMB IRDM KEY LNN MAN MMC NOK PM POOL SNA TSM TCBI TFC UNP WBS WNS

    • Afternoon: ASB OZK CSX GBCI ISRG KNX WDFC


  • Friday (Oct 20)

    • Morning: AXP ALV BHLB CMA EEFT FBP HBAN IPG RF SXT SLB

    • Afternoon: HTH


Asia & Europe detail:

Asia: Nikkei UNCH, Hang Seng -0.2%, Shanghai Composite -0.8%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. The Bank of Japan conducted an unscheduled bond buying operation and there was speculation that the BoJ would raise its inflation forecast for FY23 to 3.0%. An official with China's National Bureau of Statistics said that growth in Q4 would have to be above 4.4% in order for China to hit its annual growth target. The comments were made after the release of better than expected growth figures for Q3. The People's Bank of China reportedly instructed banks to roll over local government loans for a longer term at lower rates. Developer Country Garden appears to have missed its $15 mln coupon payment, which would trigger an offshore default. Reserve Bank of Australia Governor Bullock said that he is a bit more worried about the impact that supply shocks will have on inflation.

  • In economic data:

    • China's Q3 GDP 1.3% qtr/qtr (expected 1.0%; last 0.5%); 4.9% yr/yr (expected 4.4%; last 6.3%). September Industrial Production 4.5% yr/yr (expected 4.3%; last 4.5%), September Retail Sales 5.5% yr/yr (expected 4.9%; last 4.6%), September Fixed Asset Investment 3.1% yr/yr (expected 3.2%; last 3.2%), and September Unemployment Rate 5.0% (expected 5.2%; last 5.2%)

    • Australia's September MI Leading Index 0.1% m/m (last 0.0%)


---Equity Markets---

  • Japan's Nikkei: UNCH

  • Hong Kong's Hang Seng: -0.2%

  • China's Shanghai Composite: -0.8%

  • India's Sensex: -0.8%

  • South Korea's Kospi: +0.1%

  • Australia's ASX All Ordinaries: +0.3%

---FX---

  • USD/JPY: -0.1% to 149.70

  • USD/CNH: UNCH at 7.3221

  • USD/INR: UNCH at 83.22

Europe: DAX -0.7%, FTSE -0.8%, CAC -0.7%

Major European indices trade in the red. The U.K.'s CPI showed no sequential deceleration in the yr/yr growth rate for September (6.7%) as rising fuel prices offset lower food prices. British homebuilder Barratt Developments warned of a tough housing market due to low housing availability and high mortgage costs. European Central Bank policymaker Holzmann said that future inflationary shocks could warrant more rate hikes while policymaker de Guindos said that economic activity is expected to remain subdued through the end of 2023.

  • In economic data:

    • Eurozone's September CPI 0.3% m/m, as expected (last 0.5%); 4.3% yr/yr, as expected (last 5.2%). September Core CPI 0.2% m/m, as expected (last 0.3%); 4.5% yr/yr, as expected (last 5.3%). August Construction Output -1.1% m/m (last 1.0%)

    • U.K.'s September CPI 0.5% m/m, as expected (last 0.3%); 6.7% yr/yr (expected 6.6%; last 6.7%). September Core CPI 0.5% m/m, as expected (last 0.1%); 6.1% yr/yr (expected 6.0%; last 6.2%). September Input PPI 0.4% m/m (expected 0.9%; last 0.8%) and Output PPI 0.4% m/m (expected 0.3%; last 0.2%). September House Prices 0.2% yr/yr (expected 0.3%; last 0.7%)


---Equity Markets---

  • STOXX Europe 600: -0.5%

  • Germany's DAX: -0.7%

  • U.K.'s FTSE 100: -0.8%

  • France's CAC 40: -0.7%

  • Italy's FTSE MIB: -0.4%

  • Spain's IBEX 35: -0.7%

---FX---

  • EUR/USD: -0.2% to 1.0554

  • GBP/USD: UNCH at 1.2182

  • USD/CHF: -0.1% to 0.8990

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