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Global Stocks Pressured By Weak Earnings, Rate Hike Concerns; Pound Jumps

Global stocks are pressured this morning after a plunge in the Thai stock market and currency on concerns about the king's health and Fed hikes coupled with some more bad news out of Samsung which cut profit estimates by a third, while European stocks are suffering after Swedish telecom giant Ericsson issued a profit warning, sending its shares plunging 17%.

Global Stocks Decline On Samsung Woes; Rising Dollar Pressures Oil

Global markets and US equity futures fell on Samsung Galaxy Note 7 contagion concern, while the dollar rose to its strongest level in 11 weeks and U.S. bonds declined as investors boosted wagers that the Federal Reserve will raise interest rates this year.

Key Events In The Coming Week

In the US focus will be on the market's reaction to the second presidential debate, FOMC Minutes but also retail sales, import and producer prices and Michigan sentiment. We also hear from various Fed speakers throughout the week, and Chair Yellen gives a keynote speech on Friday.

A Look Inside The Pound Flash Crash: What Really Happened In Those 30 Seconds

At just after 7 minutes after hour, whether 7pm on the east coast, midnight GMT or early Friday morning in Asian trading, pound sterling plunged by more than 6%, in the span of 2 minutes although the bulk of the plunge took place in just 30 seconds: from 7:16 to 7:46, when the market became "disorderly" in technical parlance, or in simple terms, broke. Here is what happened in those 30 seconds.

Deutsche Bank "Shocked" At "Disorderly, Dramatic" Pound Flash Crash

According to Deutsche Bank, the GBP move has been "shocking", and it will only get worse. The German bank's FX analyst George Saravelos writes in a note to clients that Deutsche Bank expects the pound to revisit lows seen during the Asia session and forecasts GBP/USD to trade at 1.15 by next year.

Sterling Tumbles To 31 Year Low Pushing The FTSE100 Near All Time High; US Futures Flat

Sterling dropped to its weakest since 1985, hit by a growing sense that the UK may be heading for a 'hard' Brexit in which it cuts links to the EU's single market in favor of total control over immigration. The dollar strengthened, the Nikkei225 rose as the Yen fell,  stocks in Europe rallied while US equity futures were fractionally in the green.

Brexit Means March: Theresa May Will Trigger EU Divorce In Q1 Of 2017

After weeks of speculation on the UK's timetable for invoking Article 50, and eventually exiting the EU, Prime Minister Theresa May today announced she’ll begin the U.K.’s withdrawal from the European Union in the first quarter of 2017, ending speculation about the start of the 2-year Brexit process.

Crude Declines As OPEC Deal Doubts Emerge; Futures Roll Over

After oil soared over 5% yesterday, its biggest jump since April, overnight skepticism and doubts have emerged about the viability and compliance with the deal, coupled with a boost in production by non-OPEC producers, and as a result WTI has dipped back under $47, down 0.5%, suggesting that the OPEC surge may be short-lived, and modestly pressuring US equity futures.

Futures Fail To Rebound As Deutsche Bank Tries To Comfort Markets That It Is "Fine"

After yesterday's "Hillary rally" in the US, the overnight's session has seen more risk-on sentiment as European stocks advanced, ignoring weakness in Asia as investors followed every twist of shares of beleaguered lender Deutsche Bank, whose CEO last night assured Bill readers that the bank is not seeking a bailout, which however was contradicted by a Zeit article this morning reporting that Germany may seek as much as s 25% "bailout" stake in a worst case scenario.

Deutsche Bank Contagion: Nord LB, Lufthansa, Korean Air Pull Bond Deals

As noted earlier, the post-debate market relief rally has given way to concerns over banking woes, with stocks turning lower in Europe as focus returns to Deutsche Bank. More troubling is the overnight news that two German issuers - Nord LB and Lufthansa  - followed quickly by Korean Air Lines, have pulled their bond deal as "uncertainty on the credit front appears to be weighing" on the broader market.