Global Market Quick Take: Asia – October 13, 2023 Global Market Quick Take: Asia – October 13, 2023 Global Market Quick Take: Asia – October 13, 2023

Global Market Quick Take: Asia – October 13, 2023

Macro 5 minutes to read
APAC Research

Summary:  Risk off mood returned to the markets after hot US CPI report that sent the higher-for-longer narrative back in play for now, and a dismal 30-year Treasury auction sent yields surging as well. Dollar ripped higher while Gold retreated marginally. Focus today turns to China’s inflation and trade data as well as the US bank earnings.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: Higher-for-longer narrative was back in play after the hot US services CPI and a weak Treasury auction also resulted in equity weakness overnight. The S&P 500 closed down 0.6% while NASDAQ 100 was down 0.4%. The rise in yields particularly hurt the utilities and real estate sectors, and bank stocks were also lower ahead of earnings from JP Morgan Chase, Citigroup and Wells Fargo will be on tap today. Delta Air Lines reported third-quarter results that topped analysts estimates, but airline cut its full-year revenue outlook, sending its shares more than 2% lower.

Fixed income: Treasuries were sold-off amid a hot CPI and dismal 30year bond auction that bear steepened the curve. 2-year yield was back above 5% and 10-year at 4.7% but biggest gains came in 30-year which rose 16bps to 4.85%.

China/HK Equities: The Hang Seng Index gained near 2% while the CSI300 added 0.9% after the Chinese central government, through Central Huijin, increased its holdings in China's four largest state-owned banks. The banks involved are the Bank of China, the Agricultural Bank of China, the Industrial and Commercial Bank of China, and the China Construction Bank. Central Huijin's modest yet symbolic investments are very likely aimed at supporting share prices, which has led to a positive market response. 

FX: Markets in a risk off overnight and dollar back in gains as hot US services CPI increased the odds of another Fed rate hike by the end of the year. Risk sensitive currencies were the most badly hurt, with AUDUSD plunging all the way to just above 0.63 handle from 0.6420 and NZDUSD back below 0.60, touching lows of 0.5920. USDJPY jumped higher to 149.80 but intervention threat capped further gains. EURUSD also reversed from 1.0640 to drop 1 big figure, and GBPUSD broke below 1.22.

Commodities: Oil prices rose slightly as OPEC said it expects crude stockpiles to slump by 3mb/d this quarter, but the course reversed again on hot PPI sending higher-for-longer narrative back in play. EIA’s weekly report showed US commercial crude oil stockpiles rose by 10.2mbbl last week although inventories at Cushing fell to its lowest since July 2022. US crude oil production reached a record 13.2m b/d last quarter according to EIA's estimates. Putting growth on track to exceed 1m b/d this year. Meanwhile, gain in European gas prices continued and Gold was hurt due to the increase in Fed rate hike bets, although $1870 support held up for now.


  • US Headline CPI was hotter than expected, coming in at 0.4% MoM (exp. 0.3%, prior 0.6%) and 3.7% YoY (exp 3.6%, prior 3.7%). Core inflation was in-line with expectations, coming at 0.3% MoM, same as prior and 4.1% YoY (prior 4.3%). While headline gains could be underpinned by energy and base effects, it was the rise in shelter and the core services inflation (0.6% MoM from 0.4% prior) that garnered a hawkish reaction in the markets. Fed rate hikes for Nov/Dec are now back close to 40% from ~30% earlier following less hawkish Fed comments over the week.
  • Fed’s Collins (2025 voter) echoed the message on higher bond yields reducing the need for a near-term Fed rate hike.
  • US jobless claims came in at prior week’s low of 209k once again, and just a notch below 210k expected.
  • UK monthly GDP for August showed a 0.2% rise in line with expectations, for 0.3% on a 3M/3M basis, also as expected.

Macro events: China CPI (Sep) exp. 0.2% YoY vs. 0.1% prior – read preview here, US University of Michigan Sentiment (Oct P) exp 67.0 vs. 68.1 prior, Singapore Q3 GDP and MAS decision – read preview here.

In the news:

  • Brutal Attack Shifts Israel From Managing Hamas to Destroying It (Bloomberg)
  • Bank earnings kick off with JPMorgan, Wells Fargo amid concerns about rising rates, bad loans (CNBC)
  • Russian rouble rebounds after Kremlin brings back capital controls (FT)


For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992