Forexlive European FX news wrap 31 Oct – Stocks stall as data hits ‘Pivotal’ bets | Forexlive

As I leave the desk, a reminder of today’s European Session stories and the ‘5 Things You Need to Know’ via Newsquawk

1. European bourses began the week modestly firmer, though this proved shortlived and the complex has pivoted to being mixed overall in-fitting with the APAC handover

2. Stateside, futures are under more pressure, ES -0.5% as yields pickup a touch, NQ -0.7% lags slightly as such

3. USD is bolstered by the general risk tone, Yuan pressure post-PMIs and the latest piece from WSJ’s Timiraos; DXY to a 111.20+ peak

4. Core fixed benchmarks pressured with yields extending as we enter a week dominated by Central Bank activity

5. Commodities under pressure amid the USD pickup and weak Chinese PMIs alongside COVID woes

via Reuters: Stocks stalled and the dollar and bond yields edged higher on Monday as record euro zone inflation, weak Chinese data and Russia’s withdrawal from a crucial grain pact set traders up for another bumper Federal Reserve rate hike this week.

A potentially pivotal week for U.S. monetary policy was given a new twist from renewed “terminal rate” speculation, with the worrying growth signals from China and global inflation fears also stoked by higher agricultural prices.

Euro zone inflation also came in higher than economists had been expecting too, hitting a record of 10.7% year-on-year, in what will make for more uncomfortable reading for the European Central Bank, which is targeting 2% price growth.

Combined with news that Italy’s economy grew far more strongly than expected in the third quarter, euro zone bond yields moved higher although the euro succumbed to another bout of U.S. dollar strength.