US equity futures fell along with European and Asian stocks on Friday after tech giants Amazon and Apple and Starbucks sank in premarket trading after their earnings missed expectations, signaling a possible drop of around $180 billion in combined market value when the U.S. reopens, while dizzying bond-market gyrations sparked by surprise central bank announcements amid concerns over inflation and monetary tightening left investors scrambling to guess what happens next. A failure by Biden and the Democrats to pass their massive Build Back Better stimulus package added to the bearish sentiment. At 7:15 a.m. ET, Dow e-minis were down 45 points, or 0.12%, S&P 500 e-minis were down 22 points, or 0.5%, and Nasdaq 100 e-minis were down 138 points, or 0.88%. 10Y yields rose 3bps to 1.61%; the dollar rose while bitcoin was flat at $61,000.

“Disappointment on Apple and Amazon results will likely weigh on the market sentiment,” said Ipek Ozkardeskaya, senior analyst at Swissquote. “And there is little to improve the mood, as Joe Biden is still struggling to pass his mega spending bill, the Covid delta-plus cases are surging and the U.S. growth fell short of expectations in the latest read.” There was some relief out of China, where some Evergrande Group bondholders were said to receive an overdue interest payment shortly before the expiry of a grace period, buying more time for the debt-stricken property developer as it tries to raise cash through asset sales.

Separately, Joe Biden was dealt a setback on Thursday as the House of Representatives abandoned plans for a vote on an infrastructure bill with progressives seeking more time to consider his call for a separate $1.75 trillion plan for social initiatives.

Here are some of the biggest U.S. movers today:

• Apple slides 3.6% in U.S. premarket trading after the iPhone maker reported disappointing fourth-quarter results and warned about the impact of chip shortages, rekindling worries about the key holiday quarter
• Amazon slumps 5% in premarket trading after its forecast for holiday sales fell short of analysts’ estimates, signaling the pandemic’s boost to online shopping continues to fade
• Meta Materials up 2.9% in premarket trading after soaring as much as 32% Thursday postmarket as investors mistook it for Facebook Inc. following the Internet giant’s rebrand
• Western Digital shares drop 10% in premarket trading after its earnings forecast missed estimates
• U.S. Steel surges 8% in premarket trading as investors cheer a stock buyback and a hike in dividends
• Starbucks shares decline as much as 4.9% in U.S. premarket trading as the $20b in new payouts to shareholders failed to offset quarterly results that fell short of expectations
• B. Riley Financial gained in Thursday late trading after announcing a $4 dividend, composed of a $3 special one-time payout and a doubling of its regular quarterly dividend to $1
• DaVita Inc.fell 6.7% in after-hours trading after cutting the top end of its forecast for 2021 adjusted earnings per share from continuing operations
• Plantronics tumbled 12% postmarket after the headset maker reported second- quarter revenue that missed its own guidance, as well as analyst estimates
• A10 Networks shares rose 7.5% in extended trading on Thursday after the computer networking products company said it is confident in accelerating growth beyond the previous targets of 6-8%
• Tailwind Two shares rose 4.9% Thursday postmarket after Terran Orbital Corp., a builder of small satellites, said it is merging with the SPAC and plans to go public in the first quarter of 2022

Focus now turns to the latest readings on U.S. consumer spending and the Federal Reserve’s preferred inflation gauge, the core PCE price index, due at 8:30 a.m. ET, for clues on the health of the economy ahead of the central bank’s policy meeting next week.

“(The data) will carry rather more weight with markets. High prints may see the Fed taper trade priced into the end of the week, with stocks lower, especially above the one-two punch from Apple and Amazon,” said Jeffrey Halley, senior market analyst, Asia Pacific, OANDA. “Some actual concrete progress on the U.S. spending bills instead of empty rhetoric could give a pleasant boost to markets in the end of the week as well.”

In Europe, the Stoxx 600 index extends losses to hit session low, with most sectors declining, as data showing accelerating euro-area inflation stoked concern of faster rate hikes. The Index was -0.8% as of 11:28 am in London, trims best monthly gain since March
Real estate, technology sectors are worst performers, while insurance and energy outperform. BBVA jumped 6.1% in Madrid after it announced the start of a planned stock buyback and reported earnings that beat estimates.

Asian equities headed for their third day of declines as disappointing results weighed on big technology stocks, and financials fell as bond-yield curves continued to flatten. The MSCI Asia Pacific Index slid as much as 0.6%, with TSMC, Tencent, AIA and Ping An among the biggest drags. The regional benchmark was set for a weekly loss of 1.1%, its worst in four weeks. The U.S. Treasury yield curve inverted between 20 and 30 years on Thursday, a sign that investors expect central-bank policy tightening to lead to slower economic growth and inflation. Meanwhile, Apple and Amazon.com slid in late trading after reporting weak sales, hurt by the global supply-chain crisis.  “U.S. stock futures and South Korean stocks fell following the drop in Apple,” said Hiroshi Namioka, chief strategist at T&D Asset Management Co. “Investor sentiment deteriorated on concerns about the impact of supply constraints on stocks beyond firms related to Apple.” Benchmarks in Hong Kong, the Philippines, India and Australia were also among the worst performers. The biggest gains were in Indonesia, China and New Zealand

In rates, the 10-year US Treasury yield climbed to 1.61% before easing 1 basis point. The curve between 20- and 30-years has inverted for the first time since the U.S. government reintroduced a two-decade maturity in 2020 as inflation pressures and the prospect of interest-rate hikes are whipsawing bond markets.

Treasury futures remain near lows of the day into early U.S. session, after trading heavy during Asia session, when Australian bond yields surged as the central bank’s decision not to defend its yield target on Friday fueled bets that policy makers may soon scrap the program.

In Treasury futures, multiple block trades shortly after 6am ET were consistent with a curve-steepening wager. Yields were cheaper by 2bp-3bp across the curve, keeping spreads broadly within 1bp of Thursday’s close; 10-year yields around 1.605% are around 1bp richer vs bunds and gilts. Aussie 10-year yields closed 21.8bp cheaper vs U.S. amid speculation that policy makers may soon scrap the yield-curve control program. In the US, 2s10s and 5s30s curves remain flatter on week after reaching most compressed levels in months on Thursday; month-end flows may support long-end Friday, with Bloomberg Treasury index set to extend by an estimated 0.08yr in 4pm rebalancing

European bonds extended Thursday’s retreat as data on Eurozone economic growth and inflation topped analysts’ estimates, reinforcing conviction that interest-rate increases are on the horizon after European Central Bank President Christine Lagarde offered only mild pushback against traders’ bets on a hike as soon as October next year. The euro slipped after jumping 0.7% on Thursday, but remains on track for a third week of gains.

“In the very near term, because many global central banks are just dipping their feet into taper, not even into quantitative tightening, the aggregate liquidity could remain very supportive,” Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore, said on Bloomberg Television. “Although I think you get very much more discriminatory moves and much more selective moves in the equity markets.”

In FX, the U.S. dollar ticked up from a one-month low and crude oil fluctuated and the Bloomberg Dollar Spot Index advanced as much as 0.2% as the greenback rose versus all its Group-of-10 peers apart from the Swiss franc; the Kiwi and Scandinavian currencies were the worst performers. The euro pared about half of Thursday’s advance against the dollar and European bond yields rose. Italian bonds led peripheral underperformance vs. euro-area peers and ECB policy-tightening bets gained momentum as markets continued to digest Lagarde’s lack of reassurance in her comments on Thursday. The pound inched lower in the European session. Gilts’ aggressive flattening moves in previous sessions paused as yield increases were most pronounced in the long end. Australian bond yields surged as the central bank’s decision not to defend its yield target on Friday fueled bets that policy makers may soon scrap the program. The currency hovered under its 200-day moving average.

In commodities, Brent and WTI both rose about 0.3%. Spot gold flat on the day, trades just below $1,800/oz. Base metals fall on the LME, with zinc, nickel and aluminum declining the most. Ethereum finally hit a new all-time-high, rising briefly above $4400. Chinese coal futures extended a dramatic decline as China’s government said there’s further room for prices to fall, ratcheting up interventions in the market aimed at easing an energy crisis.

Looking at today’s data we get preliminary September industrial production, preliminary Q3 GDP from Euro Area, Germany, France and Italy, preliminary October CPI from Euro Area, France and Italy, UK September mortgage approvals, Canada August GDP, US September personal spending, personal income, October MNI Chicago PMI and final October University of Michigan consumer sentiment index are due. In corporate earnings, ExxonMobil, Chevron, AbbVie, Charter Communications, Daimler, BNP Paribas, Aon and NatWest Group are among companies reporting.

Market Snapshot

• S&P 500 futures down 0.4% to 4,567.00
• STOXX Europe 600 down 0.5% to 472.83
• German 10Y yield up 3.3 bps to -0.103%
• Euro down 0.2% to $1.1663
• Brent Futures up 0.2% to $84.49/bbl
• Gold spot down 0.3% to $1,793.54
• U.S. Dollar Index up 0.14% to 93.48
• MXAP down 0.5% to 197.77
• MXAPJ down 0.7% to 649.27
• Nikkei up 0.3% to 28,892.69
• Topix little changed at 2,001.18
• Hang Seng Index down 0.7% to 25,377.24
• Shanghai Composite up 0.8% to 3,547.34
• Sensex down 0.9% to 59,417.39
• Australia S&P/ASX 200 down 1.4% to 7,323.74
• Kospi down 1.3% to 2,970.68

Top Overnight News from Bloomberg

• The returns on carry trades are roaring back in the currency markets of the world’s major developed countries, thanks to surging commodity prices, low volatility and the growing ranks of central banks that are tightening monetary policy
• U.K. households are under increasing financial stress just as the Bank of England contemplates weaning the nation off near-zero interest rates, according to debt-collection firm Lowell
• China’s junk dollar bonds had their steepest two-month decline in a decade as stress builds in the battered real estate sector and defaults mount to a record
• France and Italy drove economic growth in the 19-nation euro area in the third quarter following the suspension of most Covid-19 curbs. A surge in consumer spending propelled French output to 3% in the three months through September, exceeding all but one estimate in a Bloomberg survey. Italy reported an expansion of 2.6% that was bolstered by industry and services
• As the prospect of interest-rate hikes whipsaws bond markets, bears can be forgiven for betting the recent 10-year Treasury selloff will resume in earnest given the inflationary pressures building everywhere. But with a key section of the U.S. yield curve inverting on growth fears, the likes of AXA Investment Managers to HSBC Holdings Plc can find a receptive audience to make a case that the 40-year bull market is alive and well

A more detailed look at global markets courtesy of Newsquawk

Asia-Pac equities initially traded lower but later painted a mixed picture as the tailwinds from Wall Street dissipated. The S&P 500 and Nasdaq closed at record highs, whilst the DJIA and R2K posted solid gains. Aftermarket earnings saw reports from Apple (-3.5% AM) and Amazon (-4.7% AM), who both fell over 5% at one point, in turn hitting the NQ, with both firms citing supply chain issues. US equity futures overnight resumed trade modestly firmer but then drifted lower as APAC sentiment seeped into the Western futures. The ASX 200 (-1.5%) was dragged lower by its Telecoms and Financials sectors, whilst the KOSPI (-1.3%) conformed to the risk tone. The Nikkei 225 (+0.3%) was initially hampered with some of the export-heavy sectors towards the bottom of the bunch, although later recovered as the JPY eased, and with Japan also looking ahead to the lower house election on Sunday. The Shanghai Comp (+0.8%) saw its opening losses cushioned after another daily net CNY 100bln injection by the PBoC, for a net weekly injection of CNY 680bln – the largest in 21 months. Hang Seng (-0.7%) failed to recover amid post-earnings losses from BYD, Ping An Insurance, and Petrochina, whilst Alibaba and Tencent are also in the red. Finally, the RBA once again refrained from defending the April 2024 yield, with the bond extending its rise to 0.77% vs the RBA’s 0.10% target range.

Top Asian News

• Taiwan Growth Slows in Third Quarter Despite Record Exports
• Asia Stocks Set for Third Day of Losses as Tech, Financials Fall
• Taiwan 3Q GDP Expands 3.80% Y/Y; Survey Est. 4.3%
• Malaysia Unveils Biggest Budget to Spur Post-Lockdown Recovery

European bourses commenced the session on the back foot, Euro Stoxx 50 -0.9%, though performance throughout the morning has been choppy with indices having been unchanged and lower by as much as 1.0% on the session thus far. The morning’s busy docket hasn’t changed the dial too much, with the action perhaps more a factor of participant’s digesting the US/APAC leads and earnings updates. APAC was subdued with pressure Stateside most pronounced in the NQ (-0.8%) after earnings from Apple (AMZN) and Amazon (AAPL), which both fell around 5.0% in after hours trading, with attention being placed on supply chain issues impacting performance. In Europe, all sectors started in the red, though banking names have picked up given the ongoing drive higher in yields offsetting poorly received updates from the likes of NatWest (-4.5%); attention is on the company’s money laundering provisions of some GBP 300mln. Elsewhere, real estate names are hampered amid reports that UK banks/building societies are to begin increasing mortgage rate given inflation. Auto’s are towards the top of the pile driven by updates from Daimler (+1.7%) and the CFO remarking that market demand is high, could expect an increase in 2022 passenger car sales. Finally, the energy sector is in-focus amid OPEC+ JTC sourced reports (see commodities) and as we have a number of key names due to report stateside, including Exxon (XOM) following Chevron beating on top and bottom lines, +2.1% pre-market.

Top European News

• NatWest Shares Fall as Margin Pressures Overshadow Profit Surge
• Agnellis Agree to Sell PartnerRe to Covea for $9 Billion
• Euro-Area Economy Bolstered by France, Italy Growth: GDP Update
• Telenet Falls as HSBC Cuts to Hold on ‘Drastic’ Strategy

In FX, the Dollar has regained some poise following yesterday’s sell-off, largely on the back of a post-ECB rebound in the Euro that knocked the index down to a new w-t-d base and gave other Greenback rivals a lift indirectly. However, the index remains toppy towards the bottom of 94.024-93.277 extremes within a narrow 93.592-320 range, wary about residual or final rebalancing flows that a German bank model suggests is more prominent vs the Pound and Yen. From a tech perspective, the 50 DMA could be pivotal and comes in at 93.415 today after the DXY tested, but respected the 100 DMA circa 94.000 on several occasions, while fundamental drivers may come via a raft of data and survey releases, including PCE price metrics and the Chicago PMI. Aside from all this, yields remain elevated and curves are re-steepening irrespective of a downturn in broad risk sentiment, or perhaps in response to the ongoing bond rout, with safe-haven benefits for the Buck.

• NZD/AUD – Yet another change in fortunes for the Kiwi and Aussie, as the Antipodean cross rebounds amidst several positive factors for the latter, like much stronger than forecast final retail sales and a pick-up in ppi, while ramp higher in 3 year cash continues unchecked. Hence, Aud/Nzd is eyeing 1.0500 again and Aud/Usd is consolidating near 0.7550, but Nzd/Usd has slipped back below 0.7200.
• EUR – Some consolidation and a partial loss of the aforementioned ECB-inspired recovery momentum has pushed the Euro back down, with Eur/Usd now testing support and underlying bids around 1.1650 even though flash Eurozone inflation came in well above expectations and most preliminary Q3 GDP prints beat consensus (Germany the exception). Nevertheless, the headline pair looks less inclined to be drawn to the latest option expiries close to 1.1600 (1.5 bn in a band ending at 1.1590) and adjacent to similar size between the half round number and 1.1660 (1.4 bn to be precise).
• CHF/CAD/GBP/JPY – The Franc is marginally outpacing the Buck and extending its outperformance against the Euro to the brink of 0.9100 and not much further away from 1.0600 respectively in wake of an upbeat Swiss KOF leading indicator, but the SNB could be on edge amidst a sharp ratchet up in implied interest rates via the 3 month strip. Elsewhere, the Loonie is idling either side of 1.2350 vs its US peer in line with crude prices ahead of Canadian monthly GDP and ppi that might provide tangible justification for the BoC’s hawkish shift on QE and rate guidance, Sterling continues encounter resistance circa 1.3800 and 0.8450 against the Euro awaiting developments on the UK-French fishing row front rather than reacting to stronger than forecast BoE mortgage lending and approvals. Similarly, the Yen has taken a raft of Japanese data in stride as it straddles 113.50 in lock-step with its US counterpart and UST/JGB yield differentials

In commodities, WTI and Brent are essentially unchanged on the session, and reside towards the mid-point of the week’s range thus far. Newsflow has been limited and we look to energy giant earnings later for further impetus; though, the benchmarks did come under modest pressure on JTC source reports ahead of next week’s OPEC+ gathering. Namely, sources said that the JTC had trimmed its 2021 oil demand forecast to 5.7mln BPD (prev. 5.8mln BPD), though explained that the downward revision was ‘nothing to worry about’ and was due to updated data and rounding effects. Elsewhere, spot gold and silver have been contained within narrow ranges in the European morning with spot gold not experiencing a meaningful move away from the USD 1800/oz handle. Base metals are a touch softer from the contained performance seen in APAC hours where attention was more on thermal coal, following China’s State Planner said there is room for continued adjustments of coal prices; initial investigation results show coal production costs are significantly below current coal spot prices. In wake of this, thermal coal futures once again hit 10% limit down.

US Event Calendar

• 8:30am: Sept. Personal Income, est. -0.3%, prior 0.2%; Personal Spending, est. 0.6%, prior 0.8%
  • 8:30am: Sept. PCE Deflator YoY, est. 4.4%, prior 4.3%; PCE Deflator MoM, est. 0.3%, prior 0.4%
  • 8:30am: Sept. PCE Core Deflator YoY, est. 3.7%, prior 3.6%; Core Deflator MoM, est. 0.2%, prior 0.3%
• 9:45am: Oct. MNI Chicago PMI, est. 63.5, prior 64.7
• 10am: Oct. U. of Mich. Sentiment, est. 71.4, prior 71.4; Current Conditions, est. 77.9, prior 77.9; Expectations, est. 67.2, prior 67.2
  • 10am: Oct. U. of Mich. 5-10 Yr Inflation, prior 2.8%
  • 10am: Oct. U. of Mich. 1 Yr Inflation, est. 4.8%, prior 4.8%

DB’s Jim Reid concludes the overnight wrap

The last 36-48 hours has seen a silent rate tantrum that has caused some remarkable volatility at the front end. Silent as equities don’t care for now as US bourses again hit fresh record highs again last night before weak results from Amazon after the bell slightly dented the mood.

Although there wasn’t much new in the ECB meeting, the event seemed to calm markets down (even if purely coincidental timing wise) after a pretty stressful Asian and London morning session. To give you a flavour of this 2yr Canadian yields opened (lunchtime London) another +12 bps higher (around +38bps in less than 24 hours) before rallying 25bps over the next 3 hours and then steadying to close -6.5bps on the session, ‘only’ +13.5bps above where they were before Wednesday’s shock BoC news. As another gauge, US 2s10s which on Wednesday morning was at +120bps, rallied another 6bps in Asia and London morning to a low of under +98bps. We closed back at +108.7bps though after a big re-steepening. As we highlighted in yesterday’s CoTD (link here) there was seemingly a big positioning shock that the Canadian and then Aussie news from 24 hours ago encouraged. The latest from the Australian market is that after a +29.7bps move yesterday, 2yr yields have climbed by another +27bps this morning and now sit at 0.8% having been at 0.15% on Wednesday. Remarkable moves and this could set the stage for another frantic London session.

The yield on 10yr (+26bps) also jumped as the RBA once again didn’t defend its yield target this morning, contrary to market expectations, leading to speculation that it may be abandoned altogether as early as at the meeting next Tuesday. So this is setting the stage for a seismic event for global markets as there is a huge gap between the 0.1% target and 0.8% where the April 24 note is now trading.

Overall government bonds have been all over the place over the last couple of days and the resteepening in the US meant that 10yr yields rose +3.9bps yesterday after rallying early in the session. We’re up another +2.3bps this morning. 20yrs inverted versus 30yrs yesterday for the first time since the issue was re-introduced last year, and this curve finished the session at -2.4bps. On the inflation compensation front, 10yr breakevens narrowed for the second day on the bounce, declining -8.4bps to 2.59% which means that real yields actually rose +12.0bps – their biggest climb since immediately after the June FOMC.

European yields rose as 10yr bunds (+4.3bps), OATs (+4.6bps) and BTPs (+10.7bps) and Gilts (+2.3bps) all marched higher, while 2yr yields were +2.5bps, +0.8bps, +9.4bps, and +8.9bps higher respectively. So a mixed bag of curve moves after the BoC/Australia/ECB developments. As in the US, 10yr breakevens narrowed across Europe as well; German, French, Italian, and UK breakevens declined -6.8bps, -4.9bps, -6.0bps, and -1.9bps, respectively.

The ECB meeting was the main macro event of the day. Our Europe team offers a more thorough breakdown here, but the three main takeaways are: 1) the ECB recognised that inflation is going to be higher for longer, dropping that it is ‘largely temporary’ from its statement; 2) President Lagarde offered some (but not total) pushback on market pricing, remarking liftoff in 2022 or anytime soon thereafter was inconsistent with the ECB’s forecast and forward guidance; and 3) President Lagarde gave the firmest guidance yet that PEPP would finish in March. Her press conference came hours after Spain reported a +2.0% jump in October inflation versus +1.2% expected, while the German CPI (+0.5%), released just shortly before the press conference, also beat forecasts (+0.5% vs +0.4%).

US data was mixed, with a miss in advance Q3 GDP, which came at +2.0% versus +2.6% expected as well as surprising a slowdown in pending home sales (-2.3% vs +0.5% expected), boosted the narrative of slower growth. Meanwhile initial jobless claims (281k versus 288k expected) saw a fresh post pandemic low and personal consumption decelerated slower than expected (+0.9%), coming in at +1.6%.

In terms of equities, another string of positive earnings surprises lifted stocks, with the Nasdaq and S&P 500 reaching their record highs by the close. Every sector in the two indices, plus the DJIA finished in the green, with the Nasdaq up +1.39%, the S&P 500 +0.98% higher and the DJIA closing up +0.68%. Strong results from Ford and Caterpillar also added to the bullish outlook. Ford reported that demand was strong and that the semiconductor shortages were easing, prompting them to revise higher profit estimates for the year. Caterpillar also noted end-user demand was strong, and expects it to be strong through next year, but supply chain difficulties will limit their ability to fill orders. After the close, earnings from Amazon and Apple weighed on sentiment. Amazon missed on revenue and earnings, and noted the near-term outlook wasn’t great, due to labour shortages and supply chain woes. Apple was also hit by supply chain issues, which caused them to miss revenue estimates. S&P futures are trading lower by -0.3% ahead of the open this morning. In total, of the 52 S&P companies that reported yesterday, 44 beat on earnings while 34 beat revenue estimates.

The dynamic was less optimistic on the other side of the Atlantic, where the STOXX 600 (+0.24%) rose moderately, as it was pulled down by a steep drop in energy (-1.85%) after Royal Dutch Shell missed on earnings as well as faced calls to break up its business from an activist hedge fund. Country-wise, we saw the CAC 40 (+0.75%) and the IBEX 35 (+0.60%) outperforming the DAX (-0.06%) and the FTSE 100 (-0.05%).

In Asia, equities are mixed after the late earnings misses in the US and disappointing regional economic data. The Nikkei 225 (+0.29%) and the Shanghai composite (+0.16%) are higher, while the KOSPI (-0.62%) and the Hang Seng (-0.47%) is down. In data releases, industrial production in Japan (-5.4% vs -2.7% expected) and South Korea (-1.8% vs +2.0% expected) declined, heavily missing consensus. Tokyo CPI (+0.1%) was also below projections (+0.4%). Meanwhile, China’s National Development and Reform Commission communicated that coal prices can continue to decrease further, extending the decline in coal futures (-8.68%), as the country faces an acute energy crisis.

Elsewhere the dollar is trading higher this morning (+0.05%), while gold (-0.15%) retreated from its gains during yesterday’s European session. In energy markets, oil futures are mixed, as WTI (-0.08%) is marginally lower and Brent (+0.23%) is advancing. Natural gas prices, however, continued to decline yesterday, falling in the US (-1.71%) and Europe (-11.75%).

President Biden addressed the nation to sell the public (and, ostensibly, his own party) on a $1.75 trillion social and climate spending framework after prolonged negotiations. Along with the big outlays, the proposal includes revenue raising measures via higher tax surcharges on those making more than $10 million, a 15% minimum corporate tax rate, a 1% excise tax on stock buybacks, and funding to improve IRS enforcement of the current tax code. If Congressional Democrats can agree on the new social bill, it should also enable a vote on the separate $550 billion bi-partisan infrastructure plan. Nothing was tabled for a vote yesterday as progressive Democrats were waiting to see the detailed proposal of the social spending bill before giving the bi-partisan infrastructure bill their imprimatur. Nevertheless, it appears that out of the flurry of headlines, yesterday saw some progress in DC negotiations.

In today’s data releases, Japan September jobless rate, preliminary September industrial production, preliminary Q3 GDP from Euro Area, Germany, France and Italy, preliminary October CPI from Euro Area, France and Italy, UK September mortgage approvals, Canada August GDP, US September personal spending, personal income, October MNI Chicago PMI and final October University of Michigan consumer sentiment index are due. In corporate earnings, ExxonMobil, Chevron, AbbVie, Charter Communications, Daimler, BNP Paribas, Aon and NatWest Group are among companies reporting.