The forex space into today's European open sees a soft euro, comparative USD strength by default, and the CNY trading in a 6.844-6.86 range overnight, reports Saxo Bank Head of FX Strategy John Hardy.
"We also saw a pronounced spike in the Turkish lira, which pushed through the 5.40 area versus USD overnight," says Saxo's forex chief.
Down under, the AUD maintains a bid despite no real support from the Reserve Bank of Australia's meeting and statement.
In stocks, Saxo equities head Peter Garnry says the rebound in Chinese shares overnight does not shift the overall narrative with trade war fears and higher USD rates still dominant in APAC.
"The bears remain in control [of the Chinese stock market]," Garnry concludes.
In commodities, Saxo head of Commodity Strategy OIe Hansen reports that the strike action threatened at the world's largest copper mine in Chile may have been averted. "BHP Billiton has apparently blinked," Hansen says, adding that a five-day mediation session is set to follow.
Finally, Saxo technical analyst Kim Cramer Larsson says that the S&P 500 appears poised for a move on its all-time high.
For more on stocks, FX, commodities, and technical analysis, watch today's Morning Call in full.
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.