As I leave the desk, a reminder of today's European Session stories and the '5 Things You Need to Know' via Newsquawk
1. European bourses began the week modestly firmer, though this proved shortlived and the complex has pivoted to being mixed overall in-fitting with the APAC handover
2. Stateside, futures are under more pressure, ES -0.5% as yields pickup a touch, NQ -0.7% lags slightly as such
3. USD is bolstered by the general risk tone, Yuan pressure post-PMIs and the latest piece from WSJ's Timiraos; DXY to a 111.20+ peak
4. Core fixed benchmarks pressured with yields extending as we enter a week dominated by Central Bank activity
5. Commodities under pressure amid the USD pickup and weak Chinese PMIs alongside COVID woes
via Reuters: Stocks stalled and the dollar and bond yields edged higher on Monday as record euro zone inflation, weak Chinese data and Russia's withdrawal from a crucial grain pact set traders up for another bumper Federal Reserve rate hike this week.
A potentially pivotal week for U.S. monetary policy was given a new twist from renewed "terminal rate" speculation, with the worrying growth signals from China and global inflation fears also stoked by higher agricultural prices.
Euro zone inflation also came in higher than economists had been expecting too, hitting a record of 10.7% year-on-year, in what will make for more uncomfortable reading for the European Central Bank, which is targeting 2% price growth.
Combined with news that Italy's economy grew far more strongly than expected in the third quarter, euro zone bond yields moved higher although the euro succumbed to another bout of U.S. dollar strength.
- Vitol's CEO - "absolutely" see significantly lower demand for oil products
- Kremlin says Black Sea grain deal hardly feasible as can't guarantee safety of shipping
- Average German household gas bill 173% higher than a year ago
- Reuters Poll - Oil poised for limited gains as economic risks loom
- Gas Commission proposes German cap on household gas at 12 cents per kWh
- The @Newsquawk US Market Open: European stocks mixed, USD boosted, commodities pressured
- Bank of Italy Visco: rate rises must continue to reduce risk of persistent high inflation
- FX Majors Weekly Outlook (31-04 November)
- Eurozone GDP QoQ Prelim Flash: 0.2% (Forecast 0.1%, Previous 0.8%)
- Eurozone CPI YoY Flash: 10.7% (Forecast 10.3%, Previous 9.9%)
- UK Mortgage Approvals: 66.789k (Forecast 63.728k, Previous 74.340k)
- Italian GDP Prelim QoQ: 0.5% (Forecast 0%, Previous 1.1%)
- Citi Research: "Maintains a 50% probability of a synchronized global recession in 2023"
- Fewer German companies feel threatened than during pandemic - Ifo
- Swiss Retail Sales YoY: 3.2% (Previous 3.0%)
- German Real Retail Sales YoY: -0.9% (Forecast -3.4%, Previous -4.3%)
- Apple supplier Foxconn's key China plant hit by COVID measures
- Swiss National Bank posts loss of $142.6 billion in first nine months of 2022
- China: U.S Export control towards China severely damaged china's rights, must be rectified
