Fed kept Federal Funds Rate target unchanged at 2.00-2.25% as expected. (Newswires)
Fed said it expects further gradual increases in Fed Funds Rate will be consistent with sustained economic expansion, strong job market and inflation target, while it also commented that economic activity is rising at strong rate and that growth of business fixed investment has moderated from its rapid pace earlier in the year. Furthermore, the Fed reiterated near-term risks to economy appear roughly balanced, while it noted that inflation remains near 2% and long-term inflation expectations are little changed. (Newswires)
EU Commission sources said that a Brexit deal could be reached in the next few days, which could be presented by Monday as according to the sources. (Der Standard) However, there were later reports that a senior UK government source told Press Association that reports a Brexit deal could come in next few days should be taken with “a very large pinch of salt”. (Newswires)
EU Commission President Juncker said a deal on Brexit negotiations is difficult, while a UK government source said it is unlikely that a British cabinet meeting on Brexit will take place ahead of next week. (Newswires)
EU is reportedly demanding certain fishing rights in UK waters as price for an all-UK divorce deal to solve the Irish backstop issue. (Telegraph)
Editor of Conservative Home tweeted “No 10 telling Ministers that they must accept backstop with no escape clause – or Trade Bill will be amended to force lasting Customs Union membership.”. (Twitter)
The Times political correspondent Sam Coates tweeted that a draft timetable was discussed in Whitehall today and that there can be further negotiations after Tuesday publication, while a EU summit is likely November 23rd-25th. (Twitter)
ECB’s Draghi said that the risks to euro area growth are broadly balanced and reiterated that he anticipates net asset purchases will finish at the end of the year. (Newswires)
OPEC oil shipments will rise by 670k BPD to 25.79mln BPD in the four weeks to Nov. 24 vs. period to Oct. 27, according to data from tanker tracker Oil Movements. (Newswires)
US issued fresh Russia-related sanctions on eight entities and one individual in relation to Russia’s annexation of Crimea. (Newswires)
TripAdvisor (TRIP) and Flowserve (FLS) surged today after both reporting strong EPS above street estimates. Ulta Beauty (ULTA) was a top mover following impressive same store sales growth. Discovery (DISCA) traded higher after raising its full year OIBDA growth. L Brands (LB) also made gains on the back of raising its Q3 EPS forecast. Wynn Resorts (WYNN) nosedived after missing EPS estimates and warning of a slowdown in the Macau region. Qualcomm (QCOM) was a bottom mover after lowering revenue forecasts. Homebuilder D.R. Horton (DHI) tumbled after warning of rising home prices and mortgage rates affecting demand, spreading into the wider industry with other stocks such as PulteGroup (PHM) also down on the day. Perrigo (PRGO) also a bottom mover on the back of lowering EPS and revenue estimates. SPX -0.25% at 2807, NDX -0.62% at 7156, DJI +0.04% at 26191.
Treasuries were lower once again for the session as mid-term election risk faded and as the FOMC kept rates unchanged as expected; the yield curve flattened after the central bank highlighted strong economic activity and with no mention on the recent market volatility. In pre-Fed trade the 10yr yield hit 3.223%, the highest level since May 2011. Most of the action was in the belly of the curve were yields were higher by c.3bps at settlement. 2s6730s and 5s30s were narrower by c.3bps. US T-note futures (Z8) settled 6+ ticks lower at 117-26.