Equity markets extend gains after recent Fed decision, Apple results weigh on US equity FUTs



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General trend

– Quiet FX and bond session amid Japanese holiday.

– Upcoming US jobs data in focus.

Headlines/economic data

Australia/New Zealand

-ASX 200 opens +0.5% at 6,932.

-AUSTRALIA Q3 RETAIL SALES Q/Q: +0.2% V -0.3%E.

– Australia Oct Final PMI Services: 47.9 v 47.6 prelim (confirms move back into contraction).

-Lendlease [LLC.AU]: Co. and Google End Development Agreement; The decision to end these agreements followed a comprehensive review by Google of its real estate investments, and a determination by both organisations that the existing agreements are no longer mutually beneficial given current market conditions.

-Final New Zealand Election Results: National Party loses 2 seats to 48; the party needs Act and New Zealand First parties in order to form a majority government [**Reminder Oct 16th NZD/USD Rises following New Zealand election results; PM Hipkins conceded his Labour party lost the election on Sat.; The National Party [led by Christopher Luxon] had ~40% of the vote [>98% of the votes counted].; Following the election results, some analysts believe the National Party and ACT will require coalition talks with others.; The National Party has promised various fax cuts. ].

-New Zealand PM-Elect Luxon: Will probably seek recounts in 2 seats.

China/Hong Kong

-Hang Seng opens +1% 17,405.

– Shanghai Composite opens +0.1% at 3,012.

-CHINA OCT CAIXIN PMI SERVICES: 50.4 V 51.0E.

-China regulators reportedly probing end-Oct liquidity stress – press.

-China MIIT to issue guidelines on humanoid robot development by 2025.

-China PBOC sets Yuan reference rate: 7.1796 v 7.1797 prior.

-China PBOC Open Market Operation (OMO): Sells CNY43B in 7-day reverse repos; Net drains CNY456B v drains CNY230B prior.

Japan

-Japan markets are closed for holiday.

-MORE PRESS REPORTS THAT BANK OF JAPAN (BOJ) PLANS TO RAISE SHORT-TERM RATES FROM -0.1% TO 0.0% AROUND SPRING 2024 OR LATER, BUT TO RETAIN DOVISH RHETORIC AS MOVING TO EXIT DECADE-LONG NEGATIVE RATES – PRESS [from Nov 2nd].

-BOJ Gov Ueda to meet with business leaders on Nov 6th and hold a news conference – press.

-Japan has been forced to cut defense spending plan; cites the weaker yen – financial press.

Korea

– Kospi opens +1% at 2,365.

-South Korea Oct Foreign Reserves: $412.9B v $414.1B prior.

Other Asia

-Indonesia Central Bank (BI): Will strengthen Rupiah (IDR) stabilization measures to be in line with currency fundamentals.

-Singapore Oct PMI (whole economy): 53.7 v 54.2 prior (8th straight expansion).

Europe

-ECB Schnabel (Germany): Cannot close the door to further rate hikes; progress on inflation seen so far is encouraging but cannot declare victory too early against inflation.

Levels as of 01:20 ET

– Nikkei 225, closed, ASX 200 +1.1% , Hang Seng +2.2%; Shanghai Composite +0.7% ; Kospi +1.1%.

– Equity S&P500 Futures: -0.1%; Nasdaq100 -0.3%, Dax flat; FTSE100 +0.1%.

– EUR 1.0628-1.0614 ; JPY 150.52-150.27 ; AUD 0.6438-0.6419 ;NZD 0.5903-0.5884.

– Gold flat at $1,993/oz; Crude Oil +0.5% at $82.83/brl; Copper +0.2% at $3.6940/lb.



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