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Writer's pictureStéphan

China liq injection largest since 2020 / ME geopolitics, crude, CHF, JPY & XAU focus / Q3 Earnings



  • "Anxiety and Paralysis dominate conversations": GS's Prime's weekly highlights nn trader flows and positioning, U.S pushing to contain ME war, U.S, Israel, Egypt agree to 5hour ceasefire to begin at 6am GMT, coinciding with re-opening of the Rafah border crossing

  • ECB Lagarde - underlying inflation is still strong, wage growth is “historically high”

  • New Zealand elects conservative Christopher Luxon as premier after 6 years of liberal rule

  • 75% of S&P 500 debt is fixed rate--in 2007, it was just 44% --BofA >>> few of the largest U.S. corporations aren't that sensitive to interest rates rise (chart available)

  • China’s central bank is making the biggest medium-term liquidity injection since 2020 [a net 289 billion yuan via a one-year policy loan] stepping up efforts to support the nation’s economic recovery and debt sale

  • Brexit: 'Call us' on trade, says German finance minister Christian Lindner

  • Aliyev raises Azerbaijan's flag in former breakaway region of Karabakh

  • Australia's Albanese takes share of blame for Indigenous referendum failure

 

Markets :
  • CHF hit near all time highs vs EURO and few other pairs, EURJPY, see below, topping out for last few months, but no clear 'sell' yet anyway.

  • Equity markets : geopolitics, crude and energy in focus. JPM, Wells Fargo, Citibank whilst Blackrock underperform missing revenue. For the quarter, Blackrock clients pulled US13bln from long term funds. For the week ahead: GS and BofAML earnings upcoming on Tuesday, MS,TSLA, NVDA (Wed) in focus

  • Bonds driving sentiment again/still last week, first movers, then the rest reacts

  • Crude key to follow for ME risk sentiment

 













The overall US inflation rate moved up to 3.7% in September, the third increase in as many months. How long will the inflation rate remain elevated, above the Fed’s 2% long-term target? That’s the big question among market participant The Week in Charts (10/15/23) - Charlie Bilello's Blog





SPX500 - below 200dma in low 4200 and mr market will get worried/get caught short vol etc, 4400 resistance area.




WTI



EURJPY (other JPY crosses similar) - been forming a top since end of June - could argue both ways in short-term, BoJ 'should' move on YCC comes Q1 2024, but that's a relatively long way away, that said if markets go into harsher risk-off mood, JPY crosses should/will come under pressure



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