US stocks declined at month-end amid global data woes- Newsquawk Asia-Pac Market Open

US stocks declined at month-end and gave back some of this month’s strong gains with disappointing China data and problems in the Russia/Ukraine grain deal providing headwinds, while hot EZ inflation and weak Chicago PMI and Dallas Fed survey data added to the global demand woes.
USD was firmer to start the week in which the DXY climbed above 111.00 with hawkish WSJ Timiraos comments over the weekend cited ahead of a catalyst-filled week including the FOMC on Wednesday, followed by the BoE on Thursday and NFP on Friday.
Looking ahead, highlights include Regional PMIs, South Korean Trade Data, Chinese Caixin Manufacturing PMI, RBA Rate Decision, 10yr JGB Auction.

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Regional PMIs, South Korean Trade Data, Chinese Caixin Manufacturing PMI, RBA Rate Decision, 10yr JGB Auction.
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US TRADE

US stocks declined at month-end as disappointing China data and problems in the Russia/Ukraine grain deal provided headwinds entering the Monday session, while hot EZ inflation data and weak Chicago PMI and Dallas Fed survey data added to the global demand woes and the Dollar strength.
SPX -0.75% at 3,871, NDX -1.22% at 11,405, DJIA -0.39% at 32,732, RUT -0.00% at 1,846.
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NOTABLE HEADLINES

US Treasury said Q4 borrowing estimate assumes end-December cash balance of USD 700bln and it expects to issue USD 578bln in net marketable debt in January-March 2023, assuming end-March cash balance of USD 500bln. Furthermore, it expects to issue USD 550bln in net marketable debt in October-December 2022 period (prev. August estimate of USD 400bln) with the increase in the Q4 borrowing estimate due to changes in fiscal activity, greater-than-projected discount on marketable securities and lower non-marketable funding.
White House official said President Biden will call on oil and gas companies to invest record profits in lowering costs for American families and if oil and gas companies don't act, President Biden will ask Congress to consider tax penalties and other restrictions. It was also separately reported that President Biden is to float a windfall tax on energy producers, according to AP.

DATA RECAP

Treasuries were sold across the curve into month-end amid a hawkish Timiraos ahead of the FOMC while traders also look to refunding.

USD was firmer to start the week in which the DXY climbed above 111.00 with hawkish WSJ Timiraos comments over the weekend cited ahead of a catalyst-filled week including the FOMC on Wednesday, followed by the BoE on Thursday and NFP on Friday.
EUR weakened amid the firmer buck, despite hot inflation data from Europe and hawkish ECB commentary.
GBP retreated beneath the 1.1500 handle and although there was nothing to incremental on the UK political front behind the underperformance of the currency, the fallout continues over Home Secretary Braverman, while UK PM Sunak and Chancellor Hunt also stated it is unavoidable that all Britons will pay more tax.
JPY continued to weaken against the greenback amid the widening yield differentials ahead of the FOMC.

Crude prices were lower as weak Chinese data and a stronger Dollar into month-end applied sustained pressure.
OPEC World Oil Outlook 2022 stated that energy has witnessed a significant shift in focus since the publication of last year’s World Oil Outlook, while it noted medium-term oil demand is growing steadily and will reach 107mln BPD by 2027 which is a robust increase of 10mln BPD from the previous. Furthermore, it was separately reported that the OPEC Secretary General sees an oil surplus in Q4.
India's oil marketing companies are likely to cut petrol and diesel prices by 40 paise each tomorrow, according to ET Now sources.

Russian Defence Ministry said it stresses that Russia is suspending, not withdrawing from the Black Sea initiative.
UN official said there were no ships in the Black Sea grain corridor on the night of October 29th when Russia said its ships were attacked, while the official added that Russia and Ukraine both committed not to attack ships and related port facilities under the deal. Furthermore, the official noted that insurers said premiums may increase for shipping in the Black Sea following the Russian suspension.
North Korea said the US will pay if it uses force against North Korea and noted that US and South Korean military actions are raising tensions, while it called on the US to halt military provocations and said it will consider stronger measures if US provocations continue. Furthermore, North Korea accused the US and South Korea of ceaseless and reckless military moves, as well as noted that joint US military exercises in the region have a clearly aggressive nature, according to KCNA.
US State Department said there has been no change in US policy towards North Korea and the US remains open to diplomacy, while the US would like to see North Korea engage in serious and substantial dialogue.

NOTABLE HEADLINES

Macau is to commence mass COVID nucleic acid testing on November 1st, according to Bloomberg.
EU officials have proposed a far-reaching ban on the sale of goods made with forced labour, although the plan is in the early days and could take years to come into force, according to WSJ.
RBI will not take or discuss any actions on rates at the November 3rd MPC, according to CNBC-TV18.

European equity markets were mostly positive and the STOXX Europe 600 finished up by 0.4%.

NOTABLE HEADLINES

UK PM Sunak and Chancellor Hunt said it is unavoidable that all Britons will pay more tax.
ECB's de Cos said recession risks are spreading and the outlook has darkened significantly.
ECB's Visco said rate rises must continue to reduce the risk of persistent high inflation and there are no doubts that rates are not yet in line with the objective of the 2% inflation target.
German Economy Ministry spokesperson said the cabinet should possibly decide this week about a one-off payment for December regarding gas price help. It was also reported that German Chancellor Scholz said they will adopt the main framework for implementing the gas price commission's proposal this week.
Italian PM Meloni said they are to issue new economic and public finance targets on Friday.

DATA RECAP

EU HICP Flash YY (Oct) 10.7% vs. Exp. 10.2% (Prev. 9.9%)
EU HICP-X F&E Flash YY (Oct) 6.4% vs. Exp. 6.0% (Prev. 6.0%)
EU GDP Flash Prelim QQ (Q3) 0.2% vs. Exp. 0.2% (Prev. 0.8%)
EU GDP Flash Prelim YY (Q3) 2.1% vs. Exp. 2.1% (Prev. 4.1%)
German Retail Sales MM Real* (Sep) 0.9% vs. Exp. -0.3% (Prev. -1.3%, Rev. -1.4%)
German Retail Sales YY Real* (Sep) -0.9% vs. Exp. -4.9% (Prev. -4.3%, Rev. -1.5%)