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%. 

  • Reuters - Australia's central bank raises rates to 12-year high, tempers hawkish stance

• 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%... 

  • Reuters - China's imports unexpectedly grow as demand makes cautious comeback

• 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.