Dollar continues to underperform major counterparts ahead of FOMC and expectations for a Dovish-Hike

WTI hits October 2017 lows as oversupply and growth concerns weigh on prices

Looking ahead, highlights include US building permits and housing starts, ECB’s Makuch

ASIA

Asian equities were lower across the board following the slump seen on Wall St. as investors readied for an expected Fed hike against the backdrop of slowing global growth. The S&P fell to the lowest in 14 months,...

• Asian equities were lower across the board following the slump seen on Wall St. as investors readied for an expected Fed hike against the backdrop of slowing global growth
• UK Labour Leader Corbyn is now implementing a forward motion of no-confidence in UK PM May following her decision to not hold a Brexit vote immediately
• UK PM May has challenged Corbyn instead to call for a no-confidence vote in the government rather than herself, after the PM secured...

• Dollar is trading cautiously ahead of FOMC with comparative outperformance seen in G10 counterparts.
• EU & Asian equities begin the week cautiously, amidst comments that the US are raising concerns over China with the WTO
• Looking ahead the highlight is NY Fed Manufacturing

• Asian equity markets began the week somewhat cautiously following the downbeat lead from Wall St. in which the three major bourses closed lower by around 2% each
• PM May’s Deputy David Lidington and Number 10 Chief of Staff Gavin Barwell dismissed reports from The Times that they were preparing for a second referendum behind PM May's back
• UK Attorney General Cox has reportedly told Cabinet Ministers that PM May must be “removed” after...

• Early EU sentiment undermined by disappointing Chinese data, EZ PMIs and negative Brexit rumblings
• Some respite as China looks set to temporarily lift retaliatory tariffs on US cars
• Looking ahead highlights include, US Retail Sales, Flash PMIs, Industrial Production and Baker Hughes rig count

• Asian equity markets were negative across the board as sentiment in the region soured following the lacklustre lead from Wall St and as region digested disappointing data from China
• In FX markets, the DXY consolidated just above the 97.00 level with price action kept range-bound by mixed trade in the greenback’s major counterparts
• EU reportedly strengthened the wording on Brexit backstop in summit document and reiterated it doesn't seek to use Brexit backstop, however EU leaders said the...

• UK PM May leadership challenge submitted by 1922 committee, with results due at 21:00GMT/16:00EST
• US-China trade tensions marginally subside as Trump says telephone negotiations are underway
• Looking ahead, highlights include US CPI & Real Weekly Earnings, Brazilian Interest Rate Decision, US 10yr Auction

• Asian stocks traded higher across the board with sentiment underpinned as news flow spurred optimism regarding US-China trade relations
• Multiple sources in the UK believe that the 48 letter threshold has been reached to trigger a confidence vote in UK PM May; yet to be confirmed
• Most major FX pairs attempted to nurse losses against the greenback with EUR and GBP regaining some ground vs. the USD
• Looking ahead, highlights include...

• China reportedly looking to move forward with US Auto Tariff reduction lifts equity futures further as risk-on tone returns
• Cable climbing as UK PM May returns to Brussels for compromise
• Looking ahead, highlights include US PPI, US 3yr Note Auction, PM May meeting EU’s Juncker & Tusk

• Asian equity markets were mixed as sentiment in the region only found mild solace from the tech-led recovery on Wall St.
• A source said Brexit vote could take place in early January, although a spokesman for UK PM May said doesn't think PM May established a new Brexit deal vote date
• Reports suggest Italian PM Conte is targeting a 2.1% deficit, whilst Deputy PMs Salvini and Di Maio refuse a deficit of below 2.2% and the EU demand a target of 1.95%
• Looking ahead, highlights include UK...

• Mixed reports on meaningful vote deal leads to a meandering GBP
• Risk sentiment remains soft, as trade uncertainty remains at the forefront
• Looking ahead, highlights include US JOLTS, BoC’s Lane and BoE’s Cunliffe

• European equities extend cash-open gains as the region following the rebound seen on Wall St
• Oil trades choppy as OPEC talks come to a standstill with Iran remaining an obstacle
• Government sources state that the UK meaningful vote on PM May’s deal will take place on December 11th
• Looking ahead, highlights include US and Canadian Jobs Reports, US EIA Natural Gas Storage Fed's Brainard Speaking, OPEC+ Meeting in...

• Asian stocks saw cautious gains with the region getting an early tailwind after the sharp rebound on Wall St, where most majors finished lower albeit off worse levels
• UK PM May is said to be weighing plan to postpone next week's Brexit vote, with her allies urging her to delay the vote amid forecasts for a catastrophic defeat
• Oil prices subdued following the lack of solid breakthrough at yesterday’s OPEC meeting and with Saudi Energy Minister...

• Crude collapses as OPEC+ and Saudi assert that there is no rush to cut, and 1.3mln BPD is “excessive
• Huawei CFO arrested on Iranian sanction violations hints at further trade tensions as the bearish market sentiment takes hold
• Looking ahead, highlights include ADP Employment, Initial Jobless Claims, ISM Non-Manufacturing Data, Durable Goods (R), Factory Orders and DoEs, Canadian Trade Balance, BoJ's Kuroda, Fed's Powell, Quarles, Bostic,...

• Asian stocks were lower across the board for a 3rd consecutive day with sentiment dampened after the US market closure and reports that Canada arrested Huawei’s CFO at the request of US authorities
• The potential ramifications for US-China trade discussions weighed heavily on US equity futures and forced the CME to intervene to prevent a harder drop
• UK PM May is being pushed by cabinet members to postpone next week's Parliament vote on Brexit amid...

• European bourses (Eurostoxx -0.9%) have followed suit from their US and Asia-Pac counterparts as trade-inspired optimism continues to fade
• Brexit legal advice states "backstop could mean the UK is subject to protracted and repeating rounds of negotiations"
• Broad dollar and DXY have handed back some of Tuesday’s pronounced gains made amidst yesterday’s Wall St. selloff
• Looking ahead, highlights include, BoC...

• Asian stock markets were pressured following the sell off on Wall St where doubts regarding a US-China trade deal saw all US majors drop over 3%
• China’s Mofcom declared the US-China trade meeting as successful, although were said to be puzzled and irritated by the Trump administration's triumphant rhetoric
• UK Government was defeated in the Commons after being found in contempt of Parliament, with MPs also granted more power over the next Brexit...

• European equities have kicked the session off with modest losses (Eurostoxx 50 -0.5%) as markets take a breather from yesterday’s “trade truce” inspired gains
• DXY pulling back further from 97.000 to register a fresh post-G20 low of 96.372
• Oil surged on source reports of a 1.3mln BPD minimum cut, before pairing gains after KSA Energy Minister watered down cut expectations
• Looking ahead, highlights include weekly...

• Asian stocks traded mostly negative as the relief rally fizzled out in the region with investors quick to book their recent profits.
• In FX markets, USD softened against its major counterparts with the DXY back below the 97.00 level amid a decline in US yields, which benefitted both EUR/USD and GBP/USD
• Italy's Deputy PMs Di Maio and Salvini are said to be open to a possible 2% deficit. However, Italian press noted that a budget deficit at 2% is not low...

• US President Trump and Chinese President Xi Jinping announced a truce at the G20 in which the US agreed to delay hiking tariffs on USD 200bln of Chinese goods to 25% for 90 days
• Russia President Putin spoke with Saudi Arabia’s Crown Prince in which they agreed to extend the OPEC+ agreement, although haven’t decided on the precise volume of production cuts
• Looking ahead, highlights include US Markit Manufacturing PMIs, Fed’s Quarles,...

• US President Trump and Chinese President Xi Jinping announced a truce at the G20 in which the US agreed to delay hiking tariffs on USD 200bln of Chinese goods to 25% for 90 days
• Russia President Putin spoke with Saudi Arabia’s Crown Prince in which they agreed to extend the OPEC+ agreement, although haven’t decided on the precise volume of production cuts
• Italian PM Conte is reportedly preparing for a deficit of 1.9%-2.0%, while Italian Deputy...

• Italian QQ GDP contraction weighs on BTP’s as Bund-BTP spread retests 300bps
• Double trouble for Deutsche bank as MS downgrades EU banking stocks and probe enters second day
• EU equity indices largely in the red and core EU bonds in the green in skittish trade ahead of G20
• Looking ahead, highlights include, Canadian GDP, Chicago PMI, ECB's Draghi, Mersch & Coeure, Fed's Williams...

• Asian stocks traded mixed amid a cautious global risk tone ahead of the US-China showdown at the G20 and as participants digested disappointing Chinese PMI data
• FOMC Minutes stated almost all policy makers said rate hikes likely warranted "fairly soon" and it could be appropriate at future meetings to emphasise more greatly on data
• UK PM May is turning to Eurosceptics in her cabinet to launch a last gasp effort to sell her compromise Brexit deal,...

• European equities (Eurostoxx 50 +0.1%) initially piggybacked on the optimism seen on Wall St and during the Asia-Pac session as perceived dovish rhetoric by Fed Chair Powell continues to guide markets.
• Chinese President Xi is expected to offer greater market access and fewer subsidies to state firms when he meets with US President Trump at the G20
• Looking ahead the highlights are, German National CPI, US PCE Price Index and Jobless data, FOMC Minutes,...

• Asian stocks traded mostly positive after risk appetite was ignited by Fed Chair Powell’s dovish comments which spurred hopes the Fed may begin to slow down on its hiking cycle
• In FX markets, the USD was pressured post-Powell with the DXY back below 97.00 which led EUR/USD and GBP/USD to reclaim the 1.1300 and 1.2800 handles respectively
• EU could give Italy more time before triggering the Excessive Deficit Procedure (EDP); according to La Repubblica
• Looking ahead, highlights...