Morning Call Script - 07 Nov 2023
Overnight asset drivers & the impending data calendar
Please note that the Harkster Research Platform had some technical upgrades over the weekend. You may need to hard refresh your browser tab or re-download your Harkster iOS app for the platform to work correctly. See here for more details.
What’s Moved Overnight
25bps from the RBA but their outlook wasn't as hawkish as many expected, leaving the Aussie vulnerable and after the initial pop higher, the lifestyle has dropped 90bps into the London open 0.6430. Rather than pre-committing to further hikes, they're now data dependent which led to a 10bps rally in Aussie 2yr to 4.3%.
Correction of last week's correction has continued with APAC stocks weaker, USD drifting stronger ... EUR 1.0695, GBP 1.2315, JPY 150.40, Nikkei down 1.3% and Kospi falling 3% (unravelling some of the short sale ban euphoria).
Chinese imports +3% vs expected -4.8% but had little impact on major assets as exports dropped -6.4% vs exp -3.3%...
Bloomberg - Fed’s Kashkari Says Too Soon to Declare Victory on Inflation, More Data Needed
As we jump on the Fed "tightening financial conditions" feedback loop, Waller's speech this afternoon (15:00) tops the table of the long list of Fed speak
Have a great day, and keep smiling!
Podcast for the Commute
Goldman Sachs - The $100bln opportunity: How anti-obesity drugs are re-shaping healthcare and consumer behaviour
The Day Ahead
EUR (08:30): French, German, Eurozone Construction PMI
GBP (11:30): Sunak Deliver's "The King's Speech".. setting the Tory agenda for the next election
USD (13:30): Trade Balance
CAD (13:30): Trade Balance
USD: Manheim Index
Fed Speak: Barr (14:15), Jeffrey (14:50), Waller (15:00), Williams (17:00) and Logan (18:30)
Stay informed throughout the day with our new commentary feed (‘Intraday Market Colour’) highlighting key notes, topics du jour, and HarksterHQ’s market updates around key data points and headlines.
Available on the Harkster Research Platform.
ㅤㅤㅤ
The information provided in this post is for general information purposes only. No information, materials, services, and other content provided in this post constitute solicitation, recommendation, endorsement or any financial, investment, or other advice. Seek independent professional consultation in the form of legal, financial, and fiscal advice before making any investment decision.
NVO and LLY look good.....