European equities trade narrowly mixed

  • European equities trade narrowly mixed, with the exception of the FX-sensitive FTSE that reached a 5-month high. US equities open with slight losses. JPM and Citi go modestly higher after earnings results.

  • The EU's chief Brexit negotiator has said talks with the UK over its exit bill have hit a "deadlock" and he will not tell EU leaders that "sufficient progress" has been made to accelerate talks from divorce to trade negotiations next week. EUR/GBP surged back north of 0.90 for the first time since mid-September.

  • EMU industrial output rose by far more than expected and at its highest rate in nine months in August as production of capital goods, such as machinery, rose sharply, boding well for economic growth in the second half of the year. Overall output rose 1.4% M/M and 3.8% Y/Y in August.

  • The number of Americans filing for unemployment benefits fell to more than a one-month low last week (243k) as claims in Texas and Florida continued to decline after being boosted by Hurricanes Harvey and Irma. US producer prices rose by the most in six months in September (0.4% M/M & 2.6% Y/Y) as the price of gasoline recorded its biggest increase in more than two years amid production disruptions at oil refineries in Texas caused by Harvey.

  • JP Morgan's quarterly profit and revenue easily trumped Wall Street's expectations, but a slump in bond trading clouded gains from loan growth and higher interest rates. Citigroup reported a 7.6% increase in quarterly profit from a gain on an asset sale, lower costs and better-than-expected trading revenue.

  • Swedish inflation fell short of estimates, as some suggested price growth may have peaked around the central bank's target. Underlying consumer prices, which adjust for changes in mortgage costs, rose 2.3% Y/Y in September, unchanged from the previous month and less than the 2.5% Y/Y predicted. EUR/SEK rose towards 9.60.

  • British lenders are planning the biggest cutback in consumer loans in nearly 10 years, the BoE said, after it warned repeatedly about the strong pace of lending to households.

  • The ECB should not keep interest rates low for too long and should tighten policy quickly during an economic upturn, ECB Weidmann said: "the monetary policy taps should be turned off in a quick and consistent manner."

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