#Newsquawk US Market Open via #ZeroHedge

Headlines from NewsSquawk: "European equities/US futures in the red with sentiment sour ahead of a busy day of Fed speak

Fixed benchmarks are back in bull-flattening mode, lifting from yesterday’s lows pre-supply
DXY firmly above 105.50, whilst Antipodeans sink on weaker sentiment and post-RBA hike
As expected, the RBA announced a 25bps hike, ensuing initial upside in the AUD before slipping on weaker forward guidance
Crude benchmarks pare back yesterday’s gains, with base metals also in the red owing to the firmer Dollar and general market sentiment
Looking ahead, highlights include US International Trade, IBD/TIPP, Manheim Index, NY Fed Q3 Household Debt & Credit Report, Speeches from Fed’s Goolsbee, Schmid, Williams, Logan, Barr, Waller, UK King's Speech and Earnings from CNH Industrial, Uber, eBay & Occidental Petroleum Corp

Crude benchmarks remain under pressure after slipping during APAC trade in-fitting with the broader risk tone and have been unable to stage any form of recovery this morning, despite equity performance being much more contained in comparison.
WTI Dec’23 and Brent Jan’23 lose the USD 80/bbl and USD 84/bbl handles respectively, an action which pushes the benchmarks to multi-month lows with support seen around USD 78/bbl mark in WTI from late-August.
Metals feature marked pressure in spot gold with the stronger USD offsetting any potential haven demand that may typically have been expected from the current tone, a tone which is weighing on base metal peers.
US DoE announced a supplemental solicitation for up to 3mln barrels of oil for delivery in January 2024 for US Strategic Reserve.
OPEC Secretary General says oil demand continues to rise significantly; Oil demand to grow more than 2mln BPD in 2024.
Click here for more details.

NOTABLE US HEADLINES

Fed's Kashkari (2023 voter) said he would err on the side of overtightening policy than not doing enough in order to bring inflation down, according to WSJ. He noted some prices and wage data indicate that inflation could be 'settling somewhere north of 2%'. Fed's Kashkari said the economy has proved to be very resilient and inflation has come down, according to Fox News. He added they are making progress on inflation and the job market is strong but has more work to do to get inflation under control. American consumers continue to spend. Need to finish the job of lowering inflation.
Punchbowl News suggests that 'the most obvious outcome' for the looming US government shutdown is a clean CR with some extraneous provisions that the Senate could accept. Leading options on that front include the creation of a statutory debt commission or new border-security provisions, according to sources close to the process. Says House Speaker Johnson's team accepts a clean continuing resolution is the most likely outcome.
China's Middle East special envoy met with US ambassador to China.
Click here for the US Early-Morning note.

Israeli PM Netanyahu says Israel is open to 'short pauses' in Gaza, but ruled out a ceasefire, according to Bloomberg.
The Biden administration is reportedly planning a USD 320mln transfer of precision bombs for Israel, according to WSJ.
Russian Defence Ministry says Russia destroyed 17 Ukraine-launched drones over Russian territory, according to RIA.

OTHER NOTABLE HEADLINES

RBA hikes its Cash Rate by 25bps as expected to 4.35% from 4.10%, and tweaked its forward guidance to say 'Whether further tightening of monetary policy is required...will depend upon the data' (prev. 'Some further tightening of monetary policy may be required'). The RBA also noted inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago.
China's Commerce Ministry has issued new rules to strengthen management of rare earth exports, effective Oct 31 2023 to Oct 31, 2025; issued new rules to strengthen import management of crude oil, iron ore, copper concentrate, potash, according to Reuters.
PBoC Deputy Governor said he is not too worried about the Chinese economy, and added the overall debt level of the Chinese government is in the mid to lower range by international standards, according to Reuters.
PBoC injected CNY 353bln via 7-day reverse repos with the rate at 1.80% for a CNY 259bln net daily drain.
Japan ruling ally Kometo tax chief says should not pre-decide to limit income tax cuts to just a year, according to Reuters.
South Korean Vice Finance Minister says FX authorities will continue to monitor currency markets as done now even after rule changes in licenses, according to Reuters.
IMF upgrades China's GDP Growth forecasts: 2023 5.4% (prev. 5%), 2024 4.6% (prev. 4.2%); follows strong Q3 and growth policies."

Equities in the red, DXY bid, post-RBA hike & slew of Fed speak due