Europe Summary and Highlights 5 Nov
Chips/AI and tech remain the dual focal points
European morning settles the big initial wide bar moves yesterday
NOK/SEK bounce out of soft Swedish CPI, and Norges Bank
BoE next up
A relatively contained, settling European morning after some sharp second-reaction moves to the election results yesterday.
Focus point one, oil, in particular currently consolidating the steep 10% drop to retest the recent lower $85-90 base on shifting scenario weightings on the Iran/geopolitically implications.
Dollar had a little follow through in Asia but flattening this morning so far. Broader dollar index holding so far above the 101~ pullback support.
The other remaining post-election focal point remains chips/AI-build out and Kospi for instance had another 5% down session towards the YTD lows. Nasdaq -0.5% though mid territory within yesterday’s very wide bar. S&P flat and nearer yesterday’s big bounce highs, reflecting this fork in current risk drivers.
NOK/SEK bounces 1/2 % from recent pullback. Norges Bank keeps policy unchanged while signalling more willingness to tighten further is inflation remains high. Swedish CPIF flash also soft at 1.1% from 1.5% vs mkt 1.4%, with ex energy 0.1% from 0.5%. Puts Riksbank action and stance in stark contrast.
Focus turns next to the BoE with a hike 100% expected and focus on Inflation Report and presentation of the move. EUR/GBP up just a fraction prior, with very minor positioning for a dovish hike prior..