Observations + Charts
Europe & US futures are trying to stabilize.
Asia mixed - heading for their biggest weekly drop in 5.
Japan lower after BOJ left policy settings unch as widely expected and maintained forward guidance/yen dropped.
USDJPY eyeing yesterday’s high ~148.3 – Ueda decline to comment on short-term FX moves.
Japan indexes 4th day of decline, with NKY eyeing the 100dma (been a decent support this year).
Global investors sold most Japan stocks last week in over 14 years as index reached multi-decade high.
China higher mostly driven by short covering on exp of more policy support measures over the weekend, just like the gov’t moves in every weekend this month.
Rebounded also helped by China considers relaxing foreign stake caps to attract global funds
HSTECH +370bps, snapping 4d of decline. CSI300 +180bps same move. BPRSEMI 5th d of decline.
Europe mostly in red only UK is seeing small gains. Ex-basic resources all SXXP sectors in the red so far.
Eurozone flash PMI mixed with manufacturing weaker, but services activity better than forecast.
UK GfK consumer confidence hit a 20-month high and retail sales posts modest recovery.
BOE- Markets put the probability of a November BoE rate hike at less than 50% despite policy statement leaving door open to more tightening.
EU cyclicals flat while EU Quality basket +50bps.
Miners leading w/iron ore gaining as investors look to Chinese stimulus and restocking at steel mills to bolster demand.
DXY +22bp, w/the USD 20bp higher vs EUR and ~40-45bp vs. the JPY. Brent +50bp. US nat gas +75bp +250bp in Europe. Bitcoin flat while gold +30bp.
US futures higher w/ESZ3 +6.75, HIWZ3 +5.00, RTYZ3 +3.90 and NQZ3 +56.25.