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Week Ahead October 3-7th, 2022:

  • MON: BoJ SOO, Bank of Israel Announcement, Japanese Tankan Survey (Q3), Swiss CPI (Sep), EZ/UK/US Final Manufacturing PMI (Sep), US ISM Manufacturing PMI (Sep)
  • TUE: RBA Announcement, US Durable Goods (Aug)
  • WED: RBNZ Announcement, South Korean CPI (Sep), German Trade Balance (Aug), EZ/UK/US Final Services & Composite PMI (Sep), US ADP (Sep), Canadian Trade Balance (Aug), US ISM Services PMI (Sep), OPEC+...
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  • European equities are attempting to claw back some of yesterday’s downside on quarter and month end; US futures similarly bid
  • GBP's revival has continued ahead of a meeting between PM Truss and the OBR, with a statement expected
  • A move that has taken Cable above 1.12 but shy of mini-Budget levels; DXY sub-112.00 at worst, though still firmer overall.
  • Debt Benchmarks bid but modestly off best levels with Bunds leading the charge, but well...
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  • APAC stocks were mostly lower after the negative performance across global peers (SPX -2.11%, NDX -2.86%).
  • European equity futures are indicative of a flat open with the Euro Stoxx 50 future unch. after the cash market closed down 1.7% yesterday.
  • DXY reclaimed 112 to the upside, EUR/USD maintained 0.98 status, whilst cable extended recovery gains to breach 1.12 at one stage.
  • EU senior diplomat said EU countries are nowhere near a consensus...
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  • European stocks are experiencing another bleak session thus far as the overnight gains in futures dissipated heading into the cash open.
  • USD has regained some poise after a mid-week pullback; though, the DXY remains off earlier 113.79 highs
  • Yuan has derived pronounced support from Reuters reports that China's state banks have been told to stock up for intervention offshore
  • UK PM Truss stuck to the Chancellor's mini-Budget, saying it is the...
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  • APAC stocks traded higher as the region took impetus from the rally on Wall St (SPX +1.91%).
  • European equity futures are indicative of a higher open with the Euro Stoxx 50 future +0.6% after the cash market closed up 0.2% yesterday.
  • DXY reclaimed 113 status with majors broadly softer vs. the greenback, GBP lags after Cable encountered resistance around 1.09. 
  • 10yr UST futures eased from this week’s highs as yesterday’s Gilt-driven...
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  • BoE is to undertake temporary Gilt purchases and is pushing back the commencement of QT to restore orderly conditions.
  • Initial debt pressure has given way to pronounced and increasing upside following the BoE's statement, Gilts +350ticks, Cable whipsawed but ultimately settled near pre-release.
  • European bourses remain softer on the session, with sectors still defensive; though, this pressure has waned in wake of BoE action.
  • Crude benchmarks...
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  • APAC stocks were lower across the board following the renewed bond selling on Wall Street.
  • European equity futures are indicative of a lower open with the Euro Stoxx 50 future -1.2% after the cash market closed down 0.4% yesterday.
  • DXY has extended gains above 114.00, antipodeans lag majors, EUR/USD and GBP/USD are on 0.95 and 1.06 handles respectively.
  • 10yr UST futures remained subdued after the prior day’s renewed selling with the 10yr...
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  • European bourses are mixed, Euro Stoxx 50 +0.2%, as the complex wanes from best levels ahead of a packed Central Bank agenda.
  • DXY has eased from newly formed peaks as yields ease from highs and broader sentiment stages a modest recovery.
  • GBP and Gilts have reclaimed some composure following recent pronounced pressure, all eyes on BoE's Pill.
  • Stateside, USTs are holding firm and similarly at the top-end of ranges ahead of numerous Fed...
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  • APAC stocks were mostly higher in which the majority of indices shrugged off the negative lead from Wall St (-1.02%).
  • European equity futures are indicative of a higher open with the Euro Stoxx 50 future +0.5% after the cash market closed down 0.2% yesterday.
  • DXY pulled back from recent highs, Cable has recovered to a 1.07 handle, NZD leads FX majors.
  • BoE said it is monitoring developments in financial markets very closely and it will not...
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  • European bourses are softer after a mixed cash open and despite a brief foray higher, Euro Stoxx 50 -0.5%, as sentiment remains subdued amid recession/inflation concerns.
  • Stateside, futures are lower across the board in-fitting with peers going into a week of Fed speak and inflation data.
  • DXY climbed to a fresh YTD high of 114.58 before paring modestly, but remaining firmer, as GBP in particular lifts off worst levels.
  • Cable succumbed to a...
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  • APAC stocks traded mostly negative in a resumption of last week's global stock rout. 
  • European equity futures are indicative of a lower open with the Euro Stoxx 50 future -0.7% after the cash market closed down 2.3% on Friday.
  • GBP/USD suffered a flash crash to 1.0327, DXY breached 114 to the upside, Italian election had little sway on EUR.
  • Italy is on course to appoint a right-wing government led by the Brothers of Italy party;...
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  • MON: Japanese Flash PMIs (Sep), German Ifo (Sep), US National Activity Index (Aug), German Prelim. CPI (Sep), Canadian Business Barometer (Sep).
  • TUE: NBH Policy Announcement; Chinese Industrial Profit (Aug), EZ M3 (Aug), US Building Permit Revisions (Aug), Durable Goods (Aug), Consumer Confidence (Sep), New Home Sales (Aug), Richmond Fed (Sep).
  • WED: BoJ Minutes (Jul); Australian Retail Sales (Aug), German GfK (Oct), Swiss Investor Sentiment (Sep), US...
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  • European bourses are pressured across the board after the Flash PMI releases for the region indicate a contraction & resurgence in price pressures; Euro Stoxx 50 -1.5%
  • Stateside, futures are lower in sympathy and continuing APAC performance awaiting their own PMI metrics and Fed commentary
  • Gilts decimated to sub-99.00 from the 102.30 region in wake of the mini-Budget and accompanying fund consideration and potential inflationary...
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  • APAC stocks were negative in the aftermath of the rush of global central bank rate hikes; Nikkei 225 was closed due to a public holiday
  • DXY marginally gained but with price action contained after the headwinds yesterday, EUR/USD remained firmly below the 0.9900 handle, USD/JPY retested 142.00 to the downside
  • Chinese Senior Diplomat Wang Yi said US-China ties are at a low ebb; G7 Foreign Ministers' statement noted there is no change in G7 policy positions on...
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  • Equities in Europe trade mostly lower but off worst levels; US equity futures trade on either side of the unchanged mark
  • USD/JPY slumped as Japan announced FX market intervention via USD-selling and JPY-buying; DXY retreated from a 111.81 peak as a result
  • Debt futures have witnessed some choppy price action at the sidelines, with the longer end of the curve outperforming 
  • Russian Deputy Chair of Security Council Medvedev said Russian...
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  • US stocks closed with losses and the S&P 500 fell beneath 3800 after the FOMC; APAC traded mostly lower
  • Fed hiked FFR by 75bps to 3.00-3.25% as expected in a unanimous decision; Fed dot plots saw the terminal rate forecast hiked to 4.6% from 3.8%
  • Fed Chair Powell in his Q&A largely reiterated the rhetoric from Jackson Hole, but he said it is likely that rates will get to levels in the dot plot
  • In FX, DXY rose to 111.79 overnight and...
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  • Stocks in Europe have clambered off worst levels with the region now trading mixed on the eve of the FOMC following the initial Russian-induced downside
  • US equity futures are modestly firmer, but near the unchanged mark overall
  • USD bid on risk-aversion pre-FOMC, though the DXY has since eased from the fresh YTD high at 110.87
  • The concerted initial bid for core benchmarks has waned with yields subdued
  • Crude propped up...
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  • US stocks closed with losses amid broad risk aversion on the eve of the FOMC; APAC stocks traded lower
  • In FX, DXY was quiet but held onto recent gains, EUR/USD was subdued, USD/JPY was rangebound
  • 10yr UST futures were lacklustre amid pre-FOMC positioning, Bund futures languished near the prior day's lows
  • Russian President Putin is expected to speak at 07:00BST/02:00EDT to announce the annexation of around 15% of Ukrainian...
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  • Bourses across Europe have been dipping with sentiment initially sullied by a marked and unexpected acceleration in German PPI
  • US equity futures have slipped into negative territory, but the breadth of the market remains shallow as the clock ticks down to the FOMC tomorrow
  • DXY remains towards the top of today's intraday band but under the 110.00 mark, JPY failed to gain impetus from hotter-than-expected Japanese CPI
  • Debt futures continue to...
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  • APAC followed suit, but gains were capped ahead of risk events
  • DXY lacked direction after a pullback from 110.00, EUR/USD remained above parity, USD/JPY traded rangebound, and Antipodeans were lacklustre
  • 10yr UST futures marginally gained, Bund futures were subdued, and 10yr JGB futures traded indecisively
  • Japanese CPI topped forecasts and remained above the BoJ’s target, whilst China’s PBoC maintained its LPRs and set a stronger CNY fix for...
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  • The subdued tone seen across a holiday-thinned APAC session reverberated into Europe; US futures are softer
  • The Dollar regrouped and regained a bid on a combination of technical and positional factors; DXY topped  110.00 but remains shy of Friday's best
  • Bonds have extended to the downside, WTI and Brent futures have resumed the sell-off, and crypto markets remain pressured
  • US President Biden said US forces would defend Taiwan in the...
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  • US stocks declined on Friday to post a weekly loss; APAC stocks were mostly subdued
  • DXY was firmer amid the cautious mood in stocks, USD/JPY was choppy with Japan on holiday
  • 10yr UST futures were slightly lower, crude oil gained, and crypto markets were under pressure
  • US President Biden said US forces would defend Taiwan in the event of a Chinese invasion
  • Looking ahead, highlights include UN General Assembly, speech...
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  • MON: Japanese Respect for the Aged Day; EZ Construction Prices (Jul), Canadian Producer Prices (Aug), German Producer Prices (Aug).
  • TUE: Chinese LPR, Riksbank Policy Announcement, RBA Minutes (Sep); Japanese CPI (Aug), EZ Current Account (Jul), US Building Permits/Housing Starts (Aug), Canadian CPI (Aug).
  • WED: FOMC & BCB Policy Announcements; UK PSNB (Aug), US Existing Home Sales (Aug), New Zealand Trade Balance (Aug).
  • THU: BoE,...
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  • Euro-bourses see the deepest losses whilst the FTSE 100 is cushioned by the slide in the Pound
  • GBP extended losses in wake of significantly weaker than forecast ONS retail sales data, with Cable sliding to the lowest level since 1985
  • 10yr T-note is almost flat ahead of preliminary Michigan sentiment which will be watched closely for inflation expectations
  • China will impose sanctions on CEO of Raytheon Technologies (RTX) and CEO of Boeing...
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  • APAC stocks fell despite better-than-expected Chinese activity data as the region took its cue from the losses in the US.
  • Chinese IP and Retail Sales exceeded expectations. NBS said the economy continued a recovery trend in August.
  • European equity futures are indicative of a weaker open with the Euro Stoxx 50 future -0.8% after the cash market closed down by 0.7% yesterday.
  • DXY was choppy on a 109 handle, EUR/USD continued to move above...
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