Developed macro
1. Markets appear to have prepared for the under-delivery of the EU summit
2. US: Q3 real GDP likely rose 2.5% supported by robust business investment, an increase in consumer spending and improved net exports.
3. There has been a rising expectation that the Bank of Japan will ease.
Interest rate strategy
1. This stage of the EU rescue effort, Euro core yield will find it difficult to sustain a move on the upside
2. Italian linker and 7Y T-note auctions scheduled
3. German swap spread tightening depends on good progress of EU rescue effort
FX strategy
1. EUR: Running out of options… as fears of ECB debasement loom.
2. AUD: Vulnerable in the wake of a lower inflation surprise.
3. AUD: Poised for a technical correction lower.
Emerging markets
1. Asian markets may garner some support today, but any gain is unlikely to be significant
2. Korean Q3 GDP at 3.4% YoY as expected; growth to remain soft in Q4 on weakening external demand
3. Turkey: Sep trade deficit to narrow but remain large; central bank still struggles between hikes and no change
Commodity markets
1. API statistics showed a surprising increase in Cushing crude stocks
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