• APAC stocks were mostly positive albeit with gains capped amid the lack of fresh catalysts from over the weekend and as participants await this week’s key events including tomorrow's FOMC minutes release.
• DXY was pressured and trickled further beneath the 104.00 level amid gains in its major peers; PBoC maintained LPRs as expected.
• European equity futures are indicative of a flat open after the cash market closed +0.9% on Friday.
• Yemen’s Houthis said they will target all ships owned and operated by Israeli companies or carrying the Israeli flag, while the Houthis later announced that they seized an Israeli ship and took it to a Yemeni port.
• Energy Intel’s Bakr said she hasn’t heard of any ‘additional’ OPEC+ cuts being discussed at this time.
• Looking ahead, highlights include German Producer Prices, US Leading Index Change, New Zealand Trade, Speeches from ECB’s Lane, de Cos, BoE’s Bailey, RBA’s Bullock & Schwartz, Supply from the US, and Earnings from Zoom Video Communications.

US TRADE

EQUITIES

• US stocks finished little changed on Friday as markets struggled for direction, while Treasuries were mixed with bear flattening seen in the aftermath of the higher-than-expected US Housing Starts and Building Permits data, as well as some hawkish rhetoric from Fed officials.
• SPX +0.13% at 4,513, NDX +0.03% at 15,838, DJI +0.01% at 34,947, RUT +1.35% at 1,798.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed’s Collins (non-voter) said on Friday that she remains optimistic that inflation can come down without a large increase in unemployment, while she has not materially changed many aspects of her forecast at this point and continues to see some evidence of rebalancing of demand and supply, as well as inflation coming down. Furthermore, Collins said that policy should remain restrictive until there is sustained evidence of inflation declining.
• Sam Altman will not return as OpenAI CEO after being fired on Friday and Emmet Shear is the new interim CEO, according to The Information. Over the weekend, OpenAI staff and investors were behind Sam Altman with Microsoft (MSFT) and venture groups exploring options to bring him back after board members fired him on Friday, according to FT.
• APEC leaders agreed to the 2023 Golden Gate Declaration after the conclusion of the meeting, while they reaffirmed the importance of the rules-based multilateral trading system with the WTO at its core and will continue to work to ensure a level playing field to foster a favourable trade and investment environment.

APAC TRADE

EQUITIES

• APAC stocks were mostly positive albeit with gains capped amid the lack of fresh catalysts from over the weekend and as participants await this week’s key events including tomorrow's FOMC minutes release.
• ASX 200 finished marginally higher as strength in energy and financials was partly offset by losses in utilities and miners, while a quiet data calendar further added to the non-committal mood.
• Nikkei 225 swung between gains and losses in which an early rally saw the index climb above 33,850 and print its highest level since 1990, before wiping out all its gains and more.
• Hang Seng and Shanghai Comp outperformed amid resilience in tech and with the property sector underpinned by support pledges, while China’s latest benchmark 1-year and 5-year Loan Prime Rates were unsurprisingly maintained.
• US equity futures traded sideways in a quiet start to the holiday-shortened trading week stateside.
• European equity futures are indicative of a flat open after the cash market closed +0.9% on Friday.

FX

• DXY was pressured and trickled further beneath the 104.00 level amid gains in its major peers and with volumes set to be lighter this week owing to the US Thanksgiving holiday.
• EUR/USD eked marginal gains amid the softer buck and with an early platform at the 1.0900 level.
• GBP/USD edged closer towards the 1.2500 handle ahead of the Autumn Statement scheduled mid-week with UK Chancellor Hunt said to be considering income tax and national insurance cuts.
• USD/JPY mirrored the flimsy risk tone in Tokyo with early upside reversed after hitting resistance at the 150.00 level.
• Antipodeans were underpinned with price action helped after the PBoC set a firmer reference rate setting, while NZD/USD outperformed after it reclaimed the 0.6000 handle and with New Zealand PM-elect Luxon moving closer to establishing a coalition government after he reached a policy agreement with ACT and New Zealand First parties.
• PBoC set USD/CNY mid-point at 7.1612 vs exp. 7.2320 (prev. 7.1728)

FIXED INCOME

• 10-year UST futures were little changed in the absence of any major catalysts as participants await the FOMC minutes on Tuesday and with early downside cushioned by support near Friday’s lows near 108.20.
• Bund futures traded marginally lower after Friday's whipsawing and failure to sustain the 131.00 level.
• 10-year JGB futures conformed to the uneventful mood following last week's late pullback from resistance above 146.00 and amid the absence of additional BoJ purchases.

COMMODITIES

• Crude futures resumed last week's late recovery amid expectations that OPEC+ could support prices after sources last week noted that the group is set to consider additional cuts when it meets on November 26th.
• Energy Intel’s Bakr said she hasn’t heard of any ‘additional’ OPEC+ cuts being discussed at this time. On Friday, it was reported OPEC+ is to consider whether to deepen oil-output cuts at the next meeting on Nov 26th, according to Reuters OPEC+ sources. Additionally, on Friday, reports suggested Saudi Arabia is highly likely to extend its 1mln BPD cut at least until Spring, while an additional OPEC+ cut of up to 1mln BPD could be on the table, according to FT sources.
• Russia’s Gazprom and Venezuela’s PDVSA are to discuss new gas projects in Venezuela, according to RIA.
• Spot gold initially prodded Friday's lows but then reverted to flat territory north of USD 1980/oz.
• Copper futures extended on recent gains with prices helped as the mood in China mildly improved.

CRYPTO

• Bitcoin was slightly lower overnight but remained above USD 37,000 after its steady weekend ascent.

NOTABLE ASIA-PAC HEADLINES

• PBoC 1-Year Loan Prime Rate (Nov) 3.45% vs. Exp. 3.45% (Prev. 3.45%)
• PBoC 5-Year Loan Prime Rate (Nov) 4.20% vs. Exp. 4.20% (Prev. 4.20%)
• China’s securities regulator will adopt different policies to address the risk of bond defaults by large real estate companies depending on their respective circumstances, according to Chinese financial media outlet Yicai.
• Taiwan’s APEC envoy Chang said he had informal interactions with US President Biden, Vice President Harris and Secretary of State Blinken but didn’t have any interactions with Chinese President Xi.

GEOPOLITICS

• Israel, Hamas and the US are close to an agreement to free dozens of hostages in Gaza in exchange for a five-day pause in fighting and were reported to have reached a tentative deal, according to the Washington Post. However, the White House said there is no deal yet and they continue to work hard to get a deal between Israel and Hamas.
• Israeli forces advanced in Gaza City as Israeli PM Netanyahu resisted calls for a ceasefire, according to FT. In relevant news, Israel’s ambassador to the US Herzog said Israel is hopeful a significant number of hostages could be freed in the coming days.
• US President Biden said in an Op-Ed article that a revitalised Palestinian authority should ultimately govern Gaza and the West Bank, while he added that the international community must establish a reconstruction mechanism to sustainably meet Gaza’s long-term needs.
• UN Secretary-General Guterres said he is deeply shocked that two UNRWA schools were struck in less than 24 hours in Gaza which killed and injured dozens of people. Guterres also said the civilian toll in Gaza is staggering and unacceptable, while he reiterated the call for an immediate humanitarian ceasefire.
• EU’s foreign policy chief Borrell said at a joint press conference with Qatari PM Al-Thani that the UN Security Council resolution on humanitarian pauses in Gaza must be implemented. It was also reported that Qatar’s PM said challenges to the hostages deal are now very minor and that sticking points in negotiations are practical and logistical, while he is more confident now that a deal can be reached on hostages.
• Iran’s Foreign Minister said resistance groups are cleverly adjusting pressure on Israel and its supporters and have an 'unactivated capacity' for pressure.
• Iran's Supreme Leader Khamenei called on Muslim states to at least cut off political ties with Israel for a limited period of time, according to TASNIM.
• Yemen’s Houthis said they will target all ships owned and operated by Israeli companies or carrying the Israeli flag, while the Houthis later announced that they seized an Israeli ship and took it to a Yemeni port.
• Chinese Foreign Minister Wang Yi said the international community must act now and take effective measures to end the humanitarian disaster regarding the Gaza situation and that China fully supports the Riyadh summit call for a two-state solution. Saudi's Foreign Minister also commented that they call for an immediate ceasefire and humanitarian assistance, while he added the international community needs to shoulder the responsibility to stop Israel.
• Turkish President Erdogan said Turkey will make efforts to rebuild damaged infrastructure, hospitals and schools in Gaza if a ceasefire is achieved, while he added that Turkey is making a call for nuclear weapons inspections in Israel so no doubt is left on the issue, according to Turkish media.
• Armenia and Azerbaijan agreed on basic principles of a peace treaty, according to TASS citing Armenia's PM.

GLOBAL NEWS

• Javier Milei won Argentina's presidential election against Sergio Massa who conceded defeat.

EU/UK

NOTABLE HEADLINES

• UK Chancellor Hunt said he will not conduct any tax cuts that would make inflation worse and that the only way to reduce personal taxes is to spend public money more efficiently, while he responded that everything is on the table regarding the Autumn Statement when asked about reports of inheritance tax cuts. Hunt also stated that the tax burden is too high which he wants to bring down, according to Reuters. It was separately reported that Hunt is ‘considering’ a cut to income tax and national insurance in the Autumn Statement but may delay a widely anticipated reduction in inheritance tax until the spring budget, according to the Independent.
• Hungarian PM Orban said Hungary needs to change the EU not leave it, while he also stated that they will need to correct the mistaken promise to start talks about Ukraine’s EU membership.
• Fitch affirmed Spain on Friday at A-; Outlook Stable, while Moody’s raised Portugal’s rating by two notches from Baa2 to A3; Outlook Stable and affirmed Italy at Baa3; Outlook revised to Stable from Negative.