European bourses are mostly lower, US futures higher with modest outperformance in the NQ.
Dollar is firmer and holding around 108.00, GBP little changed after UK shows no growth in Q3.
Bunds & Gilts pressured in thin trade, USTs flat into data.
Gas heats up on updates out of Qatar and Russia; Crude/XAU flat.
Looking ahead, Canadian GDP (Oct), US Consumer Confidence & Durable Goods, supply from US.

EUROPEAN TRADE

EQUITIES

European bourses are generally sitting in negative territory, despite a mostly positive handover from overnight APAC trade. In recent trade, a couple of indices are attempting to climb into the green.
European sectors opened with a strong negative bias, but are now mixed. Healthcare is by far the clear outperformer today, as Novo Nordisk (+6%) attempts to pare some of the hefty losses seen on Friday. Autos sits towards the lower half of the pile, but with downside in the sector pretty much in-fitting with peers. Volkswagen (-1%) initially opened higher after traders digested news that VW reached a deal with IG Metall to cut 35k jobs and avert a strike; though, did slip into negative territory thereafter.
US equity futures are modestly firmer, with slight outperformance in the NQ, in a continuation of the gains seen on Wall St in the last trading day.
Honda (7267 JT) and Nissan (7201 JT) announce the signing of the basic agreement to consider integration; Cos and Mitsubishi Motors (7211 JT) sign an MOU on collaborative considerations. Intend to set up the holding Co. in August 2026. Aim to conclude talks around June 2025. Click for full details.
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FX

DXY is slightly firmer and currently trades towards the upper end of a 107.68-108.01 range, just eclipsing the round 108.00 mark, but still someway off Friday’s best at 108.54. Docket ahead includes, US Consumer Confidence & Durable Goods.
EUR is incrementally softer vs the Dollar and also losing vs the GBP; EUR/USD currently holds towards the upper end of Friday’s 1.0342-1.04471 range. German Import Prices printed above expectations, metrics which ultimately sparked little move in the Single-Currency.
JPY is incrementally lower, with USD/JPY sitting within a very tight 156.33-80 range, given the holiday-thinned conditions. If some pressure appears in the pair, could see a test of Friday’s low at 155.94.
Cable is flat and currently trades within a 1.2554-1.2588, a little short of the 1.26 mark at best. Further upside could see a test of Friday’s peak at 1.2613 and then its 21 DMA at 1.2659 thereafter. From a macro perspective, the UK posted its Q3 GDP metrics, which saw the YY and QQ both revised a touch lower, with the QQ figure showing no growth within the period. Figures which had little impact on the Pound.
Antipodeans are very modestly in positive territory, with modest outperformance in Aussie. The Aussie holds towards the upper end of Friday’s 0.6214-0.6274 range; NZD is also a little firmer, and holds around 0.5660.
PBoC set USD/CNY mid-point at 7.1870 vs exp. 7.2880 (prev. 7.1901)
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FIXED INCOME

USTs are contained in narrow ranges with catalysts light so far. A very slight bearish-bias in play as the US risk tone is robust following the nation avoiding a gov’t. shutdown. As it stands, in a narrow 108-27+ to 109-00+ band which is entirely within Friday’s 108-19+ to 109-08+ parameters, ahead of US Consumer Confidence and Durable Goods.
Bunds came under modest pressure early doors and remains the fixed income underperformer. Pressure which occurred in limited trade with volumes very light and as such is perhaps not worth reading extensively into, though a better than expected set of import data likely influenced. Spent the morning at the low-end of a 133.72 to 134.06 band, dipping below Friday’s base and matching last week's trough; however, in recent trade the benchmark has trimmed some downside.
Gilts opened lower by 21 ticks before extending to a 92.48 base. Pressure which came given the lead from peers and despite downward revisions to UK Q3 GDP and very bleak CBI commentary from its latest indicator. 92.48 base remains comfortably above Friday’s 92.18 low and the contract trough from Thursday thereafter at 91.87.
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COMMODITIES

WTI & Brent were firmer, taking impetus from the APAC/US risk tone; however, they have succumbed to some recent selling pressure to trade around flat currently. Brent Feb'25 briefly dipped below USD 73/bbl, currently pivoting the mark.
Gold is marginally firmer, benefitting from the tepid European risk tone though with any real advance prohibited by the indications from US futures. At a USD 2633/oz peak, resistance comes into play at USD 2643/oz where the 21-DMA resides and coincides with the peak from last Wednesday.
Dutch TTF was around flat, but caught a slight bid after Russia's Kremlin said the situation with European countries that get Russian gas is complicated and needs further attention (somewhat in contrast to weekend comments where Fico said Russia confirmed a readiness).
US NatGas outperforms on commentary from Qatar.
3M LME is firmer, continuing action from APAC trade which saw modest gains for the complex in-fitting with the broader risk tone. However, 3M LME Copper is still yet to comfortably/lastingly eclipse the USD 9k handle.
Qatar has warned that it will "stop" gas sales to the EU if fined under the due diligence law, according to the Financial Times.
Slovak PM Fico noted that Russian President Putin confirmed Russia's readiness to continue supplying gas to the West and Slovakia, according to Reuters.
Libya's Acacus Oil Company has achieved oil production of 301.5k BPD, while the Sirte Oil Company has reached 103k BPD over the past two days, its highest output since 2007, according to the NOC spokesman.
Oil transit through Russia's Druzhba pipeline resumed on Saturday, according to Belarus' BelTa state news agency. Earlier, Reuters reported that oil flows from Russia and Kazakhstan to Hungary, Slovakia, the Czech Republic, and Germany via the Druzhba pipeline had been halted since Thursday due to technical issues at a Russian pumping station.
Russia's Kremlin says Putin discussed gas, Ukraine and bilateral ties with Slovakia's Fico; situation with European countries that get Russian gas is complicated and needs further attention.
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NOTABLE DATA RECAP

German Import Prices MM (Nov) 0.9% vs. Exp. 0.5% (Prev. 0.6%); Import Prices YY (Nov) 0.6% vs. Exp. 0.3% (Prev. -0.8%)
UK GDP QQ (Q3) 0.0% vs. Exp. 0.1% (Prev. 0.1%); UK GDP YY (Q3) 0.9% vs. Exp. 1.0% (Prev. 1.0%)
UK Business invest YY (Q3) 5.8% (Prev. 4.5%, Rev. 1.4%); Business Invest QQ (Q3) 1.9% (Prev. 1.2%, Rev. 1.8%)
UK Current Acc GBP (Q3) -18.099B vs. Exp. -22.75B (Prev. -28.397B, Rev. -24.002B)
Spanish GDP YY (Q3) 3.3% vs. Exp. 3.4% (Prev. 3.4%); GDP Final QQ (Q3) 0.8% vs. Exp. 0.8% (Prev. 0.8%)

NOTABLE EUROPEAN HEADLINES

ECB's Lagarde said still believe that ECB should be very vigilant about service; getting very close to that stage when ECB can declare that we have sustainably brought inflation to our medium-term 2% target, via FT; coming close to the end of that process where wages have caught up with price.
ECB's Makhlouf said the outlook for next year was probably clouded by “more uncertainty than there was when we went into lockdown; and argued against calls for the ECB to start cutting rates by 50bps at a time in early 2025, via FT. He said his...