The S&P 500 futures trade three points, or 0.1%, above fair value in what could be a retail-oriented session in terms of data and earnings reports.
Briefly, the Census Bureau will release the Retail Sales report for October (Briefing.comconsensus +1.2%) at 8:30 a.m. ET. Walmart (WMT 149.50, +2.59, +1.8%) and Home Depot (HD 374.99, +3.91, +1.1%), which ended their fiscal third quarters in October, recently reported better-than-expected earnings results.
Import and Export Prices for October will also be released at 8:30 a.m. ET, followed by Industrial Production (Briefing.comconsensus 0.8%) and Capacity Utilization (Briefing.comconsensus 75.9%) for October at 9:15 a.m. ET, and the NAHB Housing Market Index for November (Briefing.comconsensus 80.0) and Business Inventories for September (Briefing.comconsensus 0.6%) at 10:00 a.m. ET.
In other developments, the Biden-Xi virtual summit didn't produce any market-moving headlines, Credit Suisse assumed coverage on Microsoft (MSFT 337.10, +1.03, +0.3%) and other software stocks with Outperform ratings, and the IEA said it expects oil prices to ease with increasing supply the rest of the year.
U.S. Treasuries trade near their flat lines after a curve-steepening trade yesterday. The 2-yr yield is unchanged at 0.52%, and the 10-yr yield is down one basis point to 1.61%. The U.S. Dollar Index is up 0.2% to 95.59. WTI crude futures are up 0.6% to $81.40/bbl.
In U.S. Corporate news:
Walmart (WMT 149.50, +2.59): +1.8% after beating top and bottom-line estimates and raising its FY22 EPS above consensus.
Home Depot (HD 374.99, +3.91): +1.1% after beating top and bottom-line estimates.
Microsoft (MSFT 337.10, +1.03): +0.3% after being assumed with an Outperform rating at Credit Suisse along with other software companies.
Advance Auto (AZO 237.00, -4.91): -0.1% despite beating top and bottom-line estimates, guiding FY21 revenue above consensus, and raising its FY21 comparable sales guidance.
Axon (AXON 207.00, +39.59): +23.7% after beating top and bottom-line estimates and guiding FY21 revenue above consensus.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.1% Hong Kong's Hang Seng: +1.3% China's Shanghai Composite: -0.3% India's Sensex: -0.7% South Korea's Kospi: -0.1% Australia's ASX All Ordinaries: -0.7%.
In economic data:
Japan's September Tertiary Industry Activity Index 0.5% m/m (last -1.1%)
Hong Kong's October Unemployment Rate 4.3% (last 4.5%)
In news:
Japan's Finance Minister Suzuki said that he expects the Japanese economy to accelerate in Q4 with fiscal stimulus having real impact next year.
Reserve Bank of Australia Governor Lowe said that wage growth has been insufficient and that the initial rate hike may not happen before 2024.
President Biden spoke with China's General Secretary Xi, but the conversation did not produce any noteworthy headlines.
Major European indices trade near their flat lines while Germany's DAX (+0.5%) and France's CAC (+0.5%) outperform. STOXX Europe 600: +0.4% Germany's DAX: +0.5% U.K.'s FTSE 100: +0.1% France's CAC 40: +0.5% Italy's FTSE MIB: UNCH Spain's IBEX 35: -0.1%.
In economic data:
Eurozone's Q3 GDP 2.2% qtr/qtr, as expected (last 2.2%); 3.7% yr/yr, as expected (last 3.7%). Q3 Employment Change 0.9% qtr/qtr (last 0.7%); 2.0% yr/yr (last 1.9%)
U.K.'s September Average Earnings Index + Bonus 5.8% yr/yr. September three-month employment change 247,000 (expected 185,000; last 235,000) and September Unemployment Rate 4.3% (expected 4.4%; last 4.5%)
France's October CPI 0.4% m/m, as expected (last -0.2%); 2.6% yr/yr, as expected (last 2.2%)
Italy's October CPI 0.7% m/m (expected 0.6%; last 0.6%); 3.0% yr/yr (expected 2.9%; last 2.9%)
In news:
Germany reportedly suspended its certification process for the Nord Stream 2 pipeline from Russia.
Solid September employment figures from the U.K. have fueled speculation about a rate hike at the policy meeting in December.
Distiller Diageo issued strong guidance for FY23-25.
U.S. equity futures:
S&P 500 Futures: +1 @ 4,684
DJIA Futures: +49 @ 36,137
Nasdaq 100 Futures: UNCH @ 16,190
Overseas:
Europe: DAX +0.5%, FTSE +0.1%, CAC +0.5%
Asia: Nikkei +0.1%, Hang Seng +1.3%, Shanghai Composite -0.3%
Commodities:
Crude Oil +0.61 @ 80.36
Nat Gas +0.176 @ 5.193
Gold +6.25 @ 1872.85
Silver +0.177 @ 25.282
Copper -0.0055 @ 4.3945
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
Advance Auto (AAP) beats by $0.36, beats on revs, comps +3.1%; guides FY21 revs above consensus; raises FY21 comp guidance to +9.5-10.0% from prior guidance of +6-8%
AMMO (POWW) beats two analyst estimate by $0.11, beats on revs, raises FY22 revenue guidance
Aramark (ARMK) beats by $0.02, beats on revs
Axon (AXON) beats by $0.91, beats on revs; guides FY21 revs above consensus
Beachbody (BODY) reports Q3 (Sep) results; lowers FY21 sales guidance
Canoo (GOEV) reports Q3 results, net loss per share of $(0.35) vs. $(0.20) year-earlier quarter
Compass Minerals (CMP) beats by $0.12, beats single est on revs
Danimer Scientific (DNMR) reports Q3 (Sep) results
Desktop Metal (DM) misses by $0.01, misses on revs; guides FY21 revs below consensus
DouYu (DOYU) beats by RMB0.06, reports revs in-line
Endava (DAVA) beats by $0.06, beats on revs; guides Q2 EPS in-line, revs above consensus; raises FY22 guidance
Endeavor Group (EDR) beats by $0.03, beats on revs; guides FY21 revs above consensus
Evoqua Water (AQUA) misses by $0.07, beats on revs
GDS Holdings (GDS) reports Q3 (Sep) results, revs in-line; guides FY21 revs in-line
Home Depot (HD) beats by $0.54, beats on revs; Q3 total comps +6.1%; US comps +5.5%
Inter Parfums (IPAR) guides 2022 EPS and revs above dual analyst consensus
Intl Game Tech. PLC (IGT) sees FY22 revs in line; to repurchase up to $300 mln of the company's outstanding ordinary shares
J&J Snack Foods (JJSF) misses on EPS, beats on revs
Lucid Motors USA (LCID) reports Q3 results; Customer reservations rose to 13,000 in Q3
Nerdy (NRDY) reports Q3 results, misses on revs, issues inline Q4 revenue guidance
NetEase (NTES) misses by RMB0.38, beats on revs
On (ONON) beats by CHF0.16, beats on revs; guides FY21 revs above consensus; guides FY22 revs above consensus
PLBY Group (PLBY) reports Q3 (Sep) results, beats on revs
Porch Group (PRCH) reports Q3 results, beats on revs, raises FY21 revenue guidance above consensus
Rackspace Technology (RXT) beats by $0.01, reports revs in-line; guides Q4 EPS in-line, revs in-line
Rani Therapeutics (RANI) beats by $0.05; misses on revs
Sea Limited (SE) misses by $0.08, beats on revs; raises guidance
Talkspace (TALK) reports Q3 (Sep) results; also announces CEO Oran Frank, and Roni Frank to step down
Traeger (COOK) beats by $0.03, beats on revs; reaffirms FY21 revs guidance
Transdigm Group (TDG) beats by $0.55, misses on revs
Vintage Wine Estates (VWE) reports Q1 (Sep) results; co also acquires ACE Cider
Vodafone PLC (VOD) reports in-line results; beats on revs
XL Fleet (XL) reports Q3 results, revs down yr/yr
Walmart (WMT) beats by $0.06, beats on revs; raises FY22 EPS above consensus; Q3 US comps +6%
General News:
President Biden signs $1.2 trillion bipartisan infrastructure package
The Biden administration is preparing for a CBO score on Friday that will show the reconciliation bill is not fully paid for, but they will urge lawmakers to disregard it. The IRS enforcement provision will raise $120 bln versus White House estimates of $400 bln, according to the New York Times
White House issues readout of summit between President Biden and Chinese President Xi; Mr. Biden was clear that US needs to protect American workers and industries from the PRC's unfair trade and economic practices; Mr. Xi said Mr. Biden is "playing with fire" regarding US support for Taiwan
Senate Banking Chairman Sherrod Brown (D-OH) says that President Biden's decision on Fed Chair is "imminent", according to Bloomberg
Hollywood production workers ratified labor contracts, according to the Wall Street Journal
Aflac (AFL) increases quarterly dividend to $0.40/share from $0.33/share
Amarin (AMRN) Reports Subgroup Data from REDUCE-IT Highlighting Benefits of VASCEPA/VAZKEPA (Icosapent Ethyl) in Patients with Prior Peripheral Artery Disease (PAD) Presented in Rapid Fire Oral Session Presentation at the American Heart Association Scientific Sessions 2021
Autoliv (ALV) updates targets and announces new stock repurchase program at its Capital Markets Day
Boeing (BA) receives order for 787 Dreamliner, 767 Freighter and two 737 MAX airplanes from the United Republic of Tanzania
Boeing (BA) and Akasa Air, a brand of SNV Aviation, announced the new Indian carrier has ordered (72) 737 MAX airplanes to build its fleet
Bruker (BRKR) announces major advances in collision cross section enabled 4D proteomics workflows on the unique timsTOF multiomics platform
Century Aluminum (CENX) announces letter of intent with Qair for the supply of wind power to Grundartangi smelter
Codiak BioSciences (CDAK) announced "positive" initial data for exoSTING - currently being investigated in a Phase 1/2 clinical trial as a single agent for the treatment of multiple solid tumors
Compass Minerals (CMP) announces new capital allocation strategy; lowers quarterly dividend to $0.15 from $0.72/share
Faraday Future Intelligent Electric (FFIE) provides business update
Google (GOOG) interested in a cloud computing Pentagon contract, according to the New York Times
Humacyte (HUMA) announces "positive" results from a preclinical study of the small-diameter HAV in a primate model simulating pediatric heart disease
IMARA (IMRA) announces data from a pre-specified interim analysis from its ongoing Forte Phase 2b clinical trial of tovinontrine in transfusion-dependent subjects with beta-thalassemia
Intuit (INTU) appoints Suzanne Nora Johnson as Board Chair, effective January 2022
Kezar Life Sciences (KZR) announces interim results from MISSION 2 Phase 2 trial of KZR-616 in patients with lupus nephritis
Manulife Financial (MFC) enters into agreement to reinsure over 75% of US variable annuity block to Venerable Holdings
Meta Platforms (FB): Ohio Attorney General Dave Yost has filed a lawsuit against the social-media giant Facebook for misleading the public on how it controlled its proprietary algorithm
Moderna (MRNA) announces an agreement that enables the European Union and European Economic Area countries to donate doses of the Moderna COVID-19 vaccine that they have purchased under the EU Vaccines Strategy to COVAX on an ongoing basis for delivery in 2021
Molecular Partners AG (MOLN) provides update from ACTIV-3 global clinical study of Ensovibep in patients hospitalized with COVID-19
Northwest Natural (NWN) subsidiary and Archaea Energy (LFG) subsidiary sign 21-year renewable natural gas agreement
Nouveau Monde Graphite (NMG) provides corporate update on the development of its mine-to-market battery material business
ONEOK (OKE) to restart construction on previously announced natural gas and natural gas liquids infrastructure projects
Paragon 28's (FNA) Circular External Fixation System receives 501(k) marketing clearance from FDA
Peloton (PTON) files patent lawsuit against Ifit and Echelon, according to Bloomberg
Pfizer (PFE) and the Medicines Patent Pool sign licensing agreement for COVID-19 oral antiviral treatment candidate to expand access in low- and middle-income countries
PureTech (PRTC) Announces Publication of Phase 1 Results for LYT-100 in the Journal Clinical Pharmacology in Drug Development and Provides Timing Updates
Qualcomm (QCOM) and BMW Group (BMWYY) to extend their long-lasting technology collaboration to automated driving
Qualtrics (XM) expands relationship with Amazon's (AMZN) AWS
Rockley Photonics (RKLY) signs new partnership agreements with five global consumer electronics manufacturers
Southwest Gas (SWX) issues statement regarding Icahn Enterprises' intended director nominations
Stantec (STN) has been selected by FEMA to provide engineering and technical services for the National Flood Insurance Program
Stratasys (SSYS) provides strategic updates and announces partnership with Danish shoe manufacturer ECCO
Talis Biomedical (TLIS) appoints Brian Blaser as CEO, effective December 1
Talos Energy (TALO) and Freeport LNG Development execute letter of intent to develop a carbon capture and sequestration project on Texas Gulf Coast
TechnipFMC (FTI) awarded "large contract" by Exxon Mobil affiliate to supply subsea production system for the Yellowtail development
Theravance Biopharma (TBPH) has voluntarily discontinued its Phase 2 study of izencitinib in Crohn's disease
Twitter (TWTR) CFO Ned Segal says that cryptocurrency investments do not "make sense right now", according to the Wall Street Journal
Universal Insurance (UVE) declares special cash dividend of $0.13/share
Viper Energy Partners (VNOM) increases common unit repurchase authorization to $150.0 mln
M&A:
Cazoo (CZOO) has acquired Swipcar for 30 mln; will accelerate Cazoo's planned launch in Spain & Italy in 2022
Cboe Global Markets (CBOE) agrees to acquire NEO; terms not disclosed
CubeSmart (CUBE) to acquire Storage West platform for approximately $1.69 billion; also commences 13.5 mln share public offering
Exxon (XOM) in discussions to sell oil and gas properties in Texas, according to Reuters
Farmland Partners (FPI) acquires Murray Wise Associates
MoneyLion (ML) has acquired MALKA Media Group; financial terms not disclosed
OneWater Marine (ONEW) to acquire Norfolk Marine
Penske Auto (PAG) has acquired McCoy Freightliner
Quipt Home Medical (QIPT) executes LOI to acquire an arm's length private respiratory care company; deal would be immediately accretive to adj. EBITDA and net income
Rocket Lab USA (RKLB) agrees to acquire Planetary Systems Corporation in cash and stock transaction
SiteOne Landscape Supply (SITE) announces acquisition of Semco Stone; terms not disclosed
Sun Communities (SUI) to acquire Park Holidays UK for US$1.3 bln
Willis Towers Watson (WLTW) has signed a definitive agreement to acquire Leaderim; financial terms not disclosed
Syndicate:
AG Mortgage Investment Trust (MITT) commences public offering of 7.0 mln common shares
Apellis Pharmaceuticals (APLS) prices 8.75 mln share public offering at $40/share
Athira Pharma (ATHA) files for $300 mln mixed securities shelf offering
Certara (CERT) files for 10 mln share common stock offering by selling shareholders
Clover Health (CLOV) commences public offering of 35.0 mln shares of common stock
Crescent Capital BDC (CCAP) has priced an underwritten primary offering of 2,500,000 shares of its common stock, which will result in net proceeds exclusive of offering expenses to the Company of ~$53.3 mln, or $21.33/share
Custom Truck One Source (CTOS) announces that selling stockholders affiliated with Blackstone (BX) have commenced secondary offering of 12.3 mln shares of common stock
Definitive Healthcare (DH) launches follow-on offering of 11.0 mln shares of Class A common stock
DoubleVerify (DV) announces secondary public offering of 8.0 mln common shares by selling stockholders
EverCommerce (EVCM) files for 11 mln share common stock offering
Gatos Silver (GATO) files for $500 mln mixed securities shelf offering
MercadoLibre (MELI) announces public offering of common stock; amount not indicated
Newegg Commerce (NEGG) files for $300 mln share common stock offering
NorthWestern (NWE) announces public offering of $325.0 mln of its common shares
Norwegian Cruise Line (NCLH) announces registered direct offering of ordinary shares
OptiNose (OPTN) files for share common stock offering, no amount given
Peloton (PTON) files for shelf offering of Class A Common Stock; commenced an underwritten public offering of $1 billion of shares of its Class A common stock
SoFi Technologies (SOFI) files for 50 mln share common stock offering by selling shareholders
StepStone Group (STEP) prices secondary offering of 4.5 mln shares of common stock at $52.35 per share
Sun Communities (SUI) prices offering of 3.5 mln shares of common stock at $185.00 per share
Unity Software (U) announces private offering of $1.5 bln aggregate principal amount of Convertible Senior Notes due 2026
IPOs:
Expected to Trade:
Braze (Nasdaq: BRZE): The customer engagement platform that powers customer-centric interactions between consumers and brands is expected to price its 8.0 M share IPO between $55-$60.
Iris Energy (Nasdaq: IREN): The builder, owner and operator of data center and electrical infrastructure for the mining of Bitcoin primarily powered by renewable energy is expected to price its 8.3 M share IPO between $25$27.
KinderCare Learning Center (NYSE: KLC): The largest private provider of early childhood education and care services in the United States is expected to price its 25.8 M share IPO between $18-$21.
Sono Group (Nasdaq: SEV): The manufacturer of solar electric vehicles is expected to price its 10.0 M share IPO between $14-$16.
Sweetgreen (NYSE: SG): The restaurant chain focused on healthier food and environmental impact is expected to price its 12.5 M share IPO between $23-$25.
UserTesting (NYSE: USER): The pioneer of a video-first, enterprise-grade SaaS platform that enables organizations to see and hear the experiences of people as they engage with products, designs, apps, processes, concepts, or brands, is expected to price its 14.2 M share IPO between $15-$17.
Gapping Up/Down
Gapping up:
KZR +62.8%, AXON +22.8%, RPRX +11.3%, PLBY+11.1%, PRCH +10.7%, RXT +10.1%, XM +8.8%, ONON +7.5%, NTES +6.6%, FND +6.5%, QTNT +6.3%, VOD +5.5%, LCID +5.1%, ALV +4.4%, POWW +3.7%, TALO +2.9%, TLIS +2.6%, UVE +2.5%, GOEV +2.4%, RKLB +2.3%, LFG +1.7%, VNOM +1.5%, DAN +1.1%, KVSA +1.1%, FTI +0.9%
Gapping down:
TALK -30.7%, BODY -27.5%, OPTN -26.8%, NRDY-11.1%, NEGG -10.1%, CLOV -9.3%, DM -7.7%, CMP-7.5%, MARA -7.4%, DNMR -7.2%, DOYU -6.6%, MITT -5.9%, SOFI -5.5%, DH -5.2%, MELI -5.1%, COOK -4.8%, CTOS -4.6%, NWE -4.2%, IONQ -4.1%, APLS -3.7%, STEP -3.6%, FFIE -3.4%, U -3.3%, SUI-2.9%, TBPH -2.7%, NCLH -2.4%, CENX -2.3%, RANI-2%, CERT -1.7%, DV -1.5%, GATO -1.5%, EVCM-1.4%, SSYS -1.1%, AAP -1%, CUBE -0.9%, VWE-0.9%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Allegiant Travel (ALGT) upgraded to Buy from Neutral at Goldman; tgt raised to $250
IdaCorp (IDA) upgraded to Buy from Neutral at BofA Securities; tgt raised to $123
Downgrades:
Arista Networks (ANET) downgraded to Neutral from Buy at UBS; tgt raised to $530
Avis Budget (CAR) downgraded to Underweight from Equal Weight at Barclays; tgt raised to $217
Beachbody (BODY) downgraded to Neutral from Buy at Guggenheim
Beachbody (BODY) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $4
Jefferies (JEF) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $46
Landos Biopharma (LABP) downgraded to Mkt Perform from Outperform at SVB Leerink; tgt lowered to $16
Lithium Americas (LAC) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $31
Robinhood Markets (HOOD) downgraded to Neutral from Overweight at Atlantic Equities; tgt lowered to $35
Southwest Air (LUV) downgraded to Neutral from Buy at Goldman; tgt lowered to $59
Others:
Adobe (ADBE) initiated with a Neutral at Credit Suisse; tgt $700
Anika Therapeutics (ANIK) initiated with an Overweight at Stephens; tgt $55
Autodesk (ADSK) initiated with an Outperform at Credit Suisse; tgt $450
Callaway Golf (ELY) initiated with a Buy at BofA Securities; tgt $45
Canadian Nat'l Rail (CNI) initiated with a Neutral at Atlantic Equities
Canadian Pacific (CP) initiated with an Overweight at Atlantic Equities
Celsius (CELH) initiated with a Buy at Stifel; tgt $95
Cloudflare (NET) initiated with a Neutral at Credit Suisse; tgt $205
Confluent (CFLT) initiated with an Outperform at Credit Suisse; tgt $115
Coupa Software (COUP) initiated with a Positive at Susquehanna; tgt $35
Eastern Bankshares (EBC) initiated with an Overweight at Piper Sandler; tgt $25
Genasys (GNSS) initiated with an Overweight at Stephens; tgt $8
Microsoft (MSFT) assumed with an Outperform at Credit Suisse; tgt $400
MongoDB (MDB) initiated with an Outperform at Credit Suisse; tgt $700
Oracle (ORCL) initiated with an Outperform at Credit Suisse; tgt $110
Palantir Technologies (PLTR) initiated with a Neutral at Credit Suisse; tgt $25
Palo Alto Networks (PANW) assumed with an Outperform at Credit Suisse; tgt $625
Salesforce (CRM) initiated with an Outperform at Credit Suisse; tgt $375
ServiceNow (NOW) initiated with an Outperform at Credit Suisse; tgt $850
Snowflake (SNOW) initiated with an Outperform at Credit Suisse; tgt $455
Splunk (SPLK) initiated with an Outperform at Credit Suisse; tgt $225
Teradata (TDC) initiated with an Underperform at Credit Suisse; tgt $40
UiPath (PATH) initiated with an Outperform at Credit Suisse; tgt $75
VMware (VMW) initiated with an Outperform at Credit Suisse; tgt $175
Zeta Global Holdings (ZETA) initiated with a Neutral at Credit Suisse; tgt $11
Upcoming Events:
Econ Data:
08:30 ET: Retail Sales for Oct (Briefing.comConsensus 1.2%; Prior 0.7%)
08:30 ET: Retail Sales ex-auto for Oct (Briefing.comConsensus 0.9%; Prior 0.8%)
08:30 ET: Import Prices ex-oil for Oct (Briefing.comConsensus NA; Prior NA)
08:30 ET: Export Prices ex-ag for Oct (Briefing.comConsensus NA; Prior NA)
09:15 ET: Industrial Production for Oct (Briefing.comConsensus 0.8%; Prior -1.3%)
09:15 ET: Capacity Utilization for Oct (Briefing.comConsensus 75.9%; Prior 75.2%)
10:00 ET: NAHB Housing Index for Nov (Briefing.comConsensus 80.0; Prior 80.0)
10:00 ET: Business Inventories for Sep (Briefing.comConsensus 0.6%; Prior 0.6%)
16:00 ET: Net Long-Term TIC Flows for Sep (Briefing.comConsensus NA; Prior $79.3B)
Earnings:
Monday (Nov 15)
Morning: ACM HHR OTLY TSN WMG
Afternoon: AAP AXON CSPR CMP DM JJSF LCID PLBY RXT COOK
Tuesday (Nov 16)
Morning: ARMK DOYU DAVA AQUA GDS GFF HD NTES SE TDG WMT
Afternoon: AVDX DLO DLB LZB STNE VREX
Wednesday (Nov 17)
Morning: BIDU BILI BV IQ LOW MANU MTOR TGT TJX
Afternoon: BBWI CSCO CPA CPRT HP HI KLIC NVDA SONO TTEK VSCO ZTO
Thursday (Nov 18)
Morning: BABA ATKR ATHM AZEK BERY BJ BRC CSIQ JD KSS M MMS NJR WOOF PLCE VIPS
Afternoon: AMAT BECN CAL ESE FTCH GLOB INTU NUAN PANW POST ROST UGI WSM WWD WDAY
Friday (Nov 19)
Morning: FL
Asia & Europe detail:
Asia: Nikkei +0.1%, Hang Seng +1.3%, Shanghai Composite -0.3%
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Finance Minister Suzuki said that he expects the Japanese economy to accelerate in Q4 with fiscal stimulus having real impact next year. Reserve Bank of Australia Governor Lowe said that wage growth has been insufficient and that the initial rate hike may not happen before 2024. President Biden spoke with China's General Secretary Xi, but the conversation did not produce any noteworthy headlines.
In economic data:
Japan's September Tertiary Industry Activity Index 0.5% m/m (last -1.1%)
Hong Kong's October Unemployment Rate 4.3% (last 4.5%)
---Equity Markets---
Japan's Nikkei: +0.1%
Hong Kong's Hang Seng: +1.3%
China's Shanghai Composite: -0.3%
India's Sensex: -0.7%
South Korea's Kospi: -0.1%
Australia's ASX All Ordinaries: -0.7%
---FX---
USD/JPY: +0.1% to 114.21
USD/CNH: +0.1% to 6.3852
USD/INR: UNCH at 74.37
Europe: DAX +0.5%, FTSE +0.1%, CAC +0.5%
Major European indices trade near their flat lines while Germany's DAX (+0.5%) and France's CAC (+0.5%) outperform. Germany reportedly suspended its certification process for the Nord Stream 2 pipeline from Russia. Solid September employment figures from the U.K. have fueled speculation about a rate hike at the policy meeting in December. Distiller Diageo issued strong guidance for FY23-25.
In economic data:
Eurozone's Q3 GDP 2.2% qtr/qtr, as expected (last 2.2%); 3.7% yr/yr, as expected (last 3.7%). Q3 Employment Change 0.9% qtr/qtr (last 0.7%); 2.0% yr/yr (last 1.9%)
U.K.'s September Average Earnings Index + Bonus 5.8% yr/yr. September three-month employment change 247,000 (expected 185,000; last 235,000) and September Unemployment Rate 4.3% (expected 4.4%; last 4.5%)
France's October CPI 0.4% m/m, as expected (last -0.2%); 2.6% yr/yr, as expected (last 2.2%)
Italy's October CPI 0.7% m/m (expected 0.6%; last 0.6%); 3.0% yr/yr (expected 2.9%; last 2.9%)
---Equity Markets---
STOXX Europe 600: +0.4%
Germany's DAX: +0.5%
U.K.'s FTSE 100: +0.1%
France's CAC 40: +0.5%
Italy's FTSE MIB: UNCH
Spain's IBEX 35: -0.1%
---FX---
EUR/USD: UNCH at 1.1370
GBP/USD: +0.3% to 1.3452
USD/CHF: +0.2% to 0.9271
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