Round up of today's market news *

North American News

Stock Market Gains Momentum: NASDAQ up for Second Day, S&P Ends Five-Day Slump

Alphabet and Microsoft early earnings release

The major US stock indices are all closing higher.The gains are led by the NASDAQ index which is up around 1%.The NASDAQ index has risen for 2 consecutive days. The S&P index snapped a 5-day skid. The Dow industrial average broke its 4-day slide.

A snapshot of final numbers shows:

Dow industrial average rose 204.71 points or 0.62% at 33141.13
S&P index rose 30.64 points or 0.73% at 4247.67
NASDAQ index rose 121.54 points or 0.93% at 13139.86

For the quarter ending in September, Microsoft is expected to report

EPS of $2.52 per share
Revenue of $51.72 billion

EARLY RELEASE: EPS $2.99. Revenues $56.5 billion.Microsoft shares are trading up at $345.57 up 4.51%.

Alphabet, the parent company of Google, is set to release its third-quarter earnings. Analysts expect

EPS of $1.45 per share
Revenue of $75.97 billion.

EARLY RELEASE: EPS $1.55 on Revenues of $76.693 billion.Google shares are trading down -$7.57 at $131.41.

US sells 2-year notes at 5.055% vs 5.055% WI

Results of the $51 billion, two-year note auction
Prior was 5.085%

US October S&P Global flash services PMI 50.9 vs 49.8 expected

Highlights from final October services reading

The final September reading was 50.1
Manufacturing 50.0 vs 49.5 expected (prior 49.8)
Composite index 51.0 vs 50.2 prior
Service sector new business fell for a third month running, albeit at a softer pace than seen in September
Manufacturers registered the fastest rise in new orders in just over a year

Commenting on the data, Chris Williamson, Chief BusinessEconomist at S&P Global Market Intelligence said:

“Hopes of a soft landing for the US economy will beencouraged by the improved situation seen in October.The S&P Global PMI survey has been among the mostdownbeat economic indicators in recent months, so the upturn in US output growth signalled at the start of the fourth quarter is good news. Future output expectations have also turned up despite rising geopolitical concerns and domestic political tensions, climbing to the joint- highest for nearly one-and-a-half years.

“Sentiment has improved in part due to hopes of interest rates having peaked, something which looks increasingly likely given the further cooling of inflationary pressures witnessed in October. In spite of higher oil prices, firms’ input cost inflation fell sharply to the lowest since October 2020, and average selling prices for goods and services posted the smallest monthly rise since June 2020.

“The survey’s selling price gauge is now close to its pre- pandemic long-run average and consistent with headlineinflation dropping close to the Fed’s 2% target in thecoming months, something which looks likely to be achieved without output falling into contraction. That said,the tensions in the Middle East pose downside risks togrowth and upside risks to inflation, adding freshuncertainty to the outlook.”

US October Richmond Fed composite manufacturing index +3 vs +3 expected

Richmond Fed manufacturing and services index for October 2023

Prior month +5.0
New orders -4 vs +3 last month
Services index -11 versus +4 last month
Shipments +9 versus +7 last month
Employment +7 versus +7 last month
Wages +29 versus +23 last month
Availability of skills needed -1 versus -10 last month
Prices paid +3.02 versus +4.06 last month
Prices received +2.07 versus +3.06 last month.

Philly Fed October non-manufactuing index -20.3 vs -16.6 prior

October service sector survey

Firm-level business activity -4.9 vs -5.5 prior
New orders -16.1 vs -9.2 prior
Full-time employment +8.2 vs +6.4 prior
Wage and benefit cost index +34.2 vs +40.3 prior

US equites – BlackRock says there is too much optimism about corporate earnings

BlackRock Investment Institute with the cautionary heads up:

“About half of expected earnings growth is tied to mega caps … according to LSEG data, where the artificial intelligence (AI) mega force is well represented. Backing those out … expectations for broad equities are muted and overly optimistic, in our view,”
“Broad equities have started to adjust to the new regime of greater volatility, but don’t fully reflect the macro damage we expect,”

Bank of America expect FOMC hold in November & a ‘close call’ December interest rate hike

Bank of America analysts are not entirely convinced of a December rate hike but say there will be no move in November.

on hold at the October 31 / November 1 meeting
will hike by 25bp if the economic data holds up
“We shift the last rate hike in our forecast out to December. We think the strong September data keep another hike in play.But it is a close call”
“There are meaningful risks that the Fed will either delay the last hike into 2024 or not hike again”

Morgan Stanley’s Wilson “remains comfortable” with year-end 3900 S&P500 target

Via a note on Monday from Morgan Stanley strategsit Mike Wilson:

is expecting to see further choppy performance from equities through to the end of the year
stocks could move lower this week, but while the pullback could be followed by a boun ce he sees the index lower into year end
“Based on our views on earnings, valuations and policy (both monetary and fiscal), we believe the S&P 500 will have a hard time getting back above what were previously levels of support (i.e., 4300-4400) tactically”
“Based on our fundamental and technical analysis, we remain comfortable with our 3900 year-end target”

We are going to see higher interest rates for longer – Larry Fink

The big names are all chiming in to start the new week

Increase in US deficit is highly inflationary
We will not see a hard or soft landing in 2024
Fed will have to raise interest rates further

Tom Emmer will be the next GOP nominee for the Speaker of the House

Minnesota Rep and Majority Whip is the next to be thrown to the wolves

Rep. Tom Emmer (R-Minn.) will be the next nominee for House speaker after winning the first three rounds of the Republican nomination contest.

He has received an endorsement from former speaker Rep. Kevin McCarthy (R-Calif.) and secured more public endorsements than other candidates.
Emmer is the Majority Whip and has experience as the chairman of the National Republican Congressional Committee.
Despite his popularity among Republicans, Emmer faces challenges from Trump-aligned members of the party who may block his bid for speaker.
He is considered the most moderate of the candidates and has taken positions at odds with former President Donald Trump, such as supporting the certification of the 2020 presidential election results.
Emmer is known for his advocacy for the cryptocurrency industry and has co-sponsored legislation to loosen crypto regulations.
Trump and his allies have raised concerns about Emmer’s lack of endorsement for Trump’s 2024 presidential campaign and his alleged encouragement of GOP candidates to distance themselves from Trump.

Canada Sept new housing price index -0.2% vs +0.1% prior

Canada housing data

Prior was +0.1%
New home prices -1.0% y/y
Prices were unchanged in 15 of the 27 census metropolitan areas surveyed, down in 9 and up in 3
New home prices decreased the most month over month in September in Montreal (-0.7%), Edmonton (-0.7%) and Kelowna (-0.6%)

Commodities

Gold recovers $1970 as US business activity improved

Gold price recovers after hitting a weekly low of $1953 following positive US economic data release.
US Treasury bond yields surge, with the 10-year reaching 4.88%, while US real yields drop to 2.43%.
Geopolitical risks, upcoming US GDP figures, and inflation data are expected to influence gold prices.

Gold pares some of its earlier losses and climbs back above the $1970 mark after hitting a new weekly low at around $1953 after the release of US economic data. The price of gold is trading at around $1974.30 above its opening price by a minuscule 0.09%.

Silver clears daily gains

Silver trades flat, around $22.90, after peaking at a high around $23.15.
US Manufacturing and Services PMIs lived up to expectations, while the European figures disappointed.
Rising US Treasury yields favoured the downward movements. Hawkish bets on the Fed are still low.

In Tuesday’s session, the price of silver struggled to gather momentum as the USD traded strong against its rivals after the release of strong S&P Global PMIs. As a reaction, US Treasury yields slightly rose but hawkish bets on the Fed still remain low, which could limit the losses for the grey metal. The US will release additional high-tier figures this week, and Chair Powell will speak on Wednesday.

Crude oil lower for the 3rd consecutive day

Crude oil settles at $83.74 down $1.75 or -2.05%

The price of crude oil fell for the 3rd consecutive day. Today the settlement price for the day came in at $83.74 down $-1.75 or -2.05%. That decline comes on the back of a fall of -2.94% yesterday and a fall of -0.33% on Friday. The price action is volatile as market react to mideast tension, Russia, and then there are the risks from the global economy.

Europe PMI data today showed weakness and ECB’s Lagarde warned of slower growth. In the US, GDP is expected to be north of 4% (or even 5% as the Atlanta Fed is up at 5.4%), but what above the 4th quarter?

Technically, the price decline moved into a downside swing area between $82.35 and $83.32. The low price today reached $82.95 and stalled. It will take a move below $82.35 to open the door for further downside momentum. If so, the 100 day moving average at $80.60 would be targeted.

On the top side, if the momentum of the swing area can hold support, traders will look toward the August high of $84.85 as the next key target. Get above and buyers can breathe more easily.

Oil private survey of inventory shows a large headline draw vs. small build expected

API Inventory
Crude -2.668 million (exp. +1.550 million)
Gasoline -4.169 million
Distillates -2.313 million
Cushing +513,000
SPR – no change

The stakes are remarkably high as forecasts for 2030 oil demand diverge wildly

There is a chasm between IEA and OPEC estimates

The IEA was out with its annual energy outlook today, in what’s always a big event for oil market.

in the IAE’s baseline scenario, global oil demand in 2030 is 104.5 million barrels per day, which is up from about 100 million today, and includes 3 million barrels per day of biofuels.
Compare that to OPEC’s latest estimates, which are for 112.0 million barrels per day.

The 7.5 million barrels per day.Compare that to total US shale output of 9.4 million barrels per day; which has been the only material source of global oil supply growth for the past decade.Moreover, in the IEA’s announced pledges scenario and in the net zero scenario, demand falls to 97.5 mbpd or 83.7 mbpd by 2030, respectively.

These forecasts make investment extremely difficult. Keep in mind that around 5 million barrels per day of production needs to be brought online annually just to make up for natural field runoffs. The result is going to be either a feast or famine of energy and the world economy hangs in the balance. OPEC+ has been able to curb 2-3 million barrels per day but that’s about the limit of its abilities.

S&P Global highlights that up until last year, the EIA and OPEC were roughly on the same page in terms of demand.

The Saudis believe there will be shortages:

“Why would we go to 13 mil b/d if we didn’t think there would be demand for it?” said Saudi Prince Abdulaziz yesterday.

EU News

Eurozone October flash services PMI 47.8 vs 48.7 expected

Latest data released by HCOB – 24 October 2023

Prior 48.7
Manufacturing PMI 43.0 vs 43.7 expected
Prior 43.4
Composite PMI 46.5 vs 47.4 expected
Prior 47.2

The services sector reading is a 32-month low with the composite reading also sliding to a 35-month low.That outlines the sort of plight the Eurozone economy is facing to start Q4 and how heightened recession risks are, no matter the deniability by lawmakers and policymakers alike. HCOB notes that:

“In the Eurozone, things are moving from bad to worse.Manufacturing has been in a slump for sixteen months, services forthree, and both PMI headline indices just took another hit. In addition, all subindices point very consistently downwards, too, with only a few exceptions. Overall, this points to another lacklustre quarter. We wouldn’t be caught off guard to see a mild recession in the Eurozone in the second half of this year with two back to back quarters of negative growth.

“The composite PMI fell to 46.5, with the downwards movement in the index driven mostly by service activity which is on a steeper downward slope than the previous month. The unrelenting slide in new and outstanding business is a red flag, signalling more trouble ahead for this sector. Against this backdrop service providers’ hiring came almost to a standstill. Manufacturing companies are not just continuing to cut staff, they are ramping up job shedding plans. This led for the first time since January 2021 to an overall decrease in employment according to the composite PMI. Having said this, the reduction has been mild and given the structural shortage of labour we are not expecting the jobless numbers to spike up all that much in the near future.

“Comparing the top two Eurozone economies, France and Germany are pretty much neck and neck when it comes to the downturn in manufacturing. Both are struggling with output indices in the doldrums and a similar picture for new orders. Employment-wise, French companies are more aggressive in downsizing their staff. Looking at the services sector, the picture might be a little brighter for France, even though the activity index is lower than in Germany. In France, new business is not dropping as fast and companies are even adding jobs at a steady clip instead of cutting them. This more positive view is also supported by our nowcast model which sees France in the growth zone in the year’s second half while Germany is bracing for a recession.

“Price increases in the services sector remain very high in October, the more so if you measure it against previous economicrough patches. There has been only a slight slowing down of inflation in both input prices and prices charged. For theEuropean Central Bank, these figures reinforce the case of a pause in the interest rate cycle instead of thinking aloud aboutloosening monetary policy.”

France October flash services PMI 46.1 vs 44.6 expected

Latest data released by HCOB – 24 October 2023

Prior 44.4
Manufacturing PMI 42.6 vs 44.4 expected
Prior 44.2
Composite PMI 45.3 vs 44.4 expected
Prior 44.1

It is a bit of a contrast as the French services sector contracts at a slower pace in October, beating estimates, while the manufacturing sector slumped further to a 41-month low. At the balance, it still sees the French economy improve slightly to start Q4 but it’s not entirely optimistic. HCOB notes that:

“The French economy is still feeling the heat at the start of the fourth quarter. While services business activity shrank at a slower pace than the month before, the manufacturing sector fell deeper into contraction in October. Our GDP nowcast model, with PMI figures in the mix along with a bunch of other indicators, is pointing to fractional growth in the fourth quarter.

“The services sector is hitting roadblocks. Even though the corresponding HCOB PMI for business activity signalled a softer decline, new orders both overall and from abroad reduced further, while employment growth continued to slow. Lower demand also led to a faster reduction in backlogs of work, which will further limit activity gains in the coming months.

“Things are going south in the manufacturing sector, and there is no relief in sight. In fact, manufacturing output fell by its greatest margin since May 2020, reportedly due to subdued demand conditions. Manufacturers’ expectations for the next twelve months worsened conspicuously, with the corresponding index falling to the lowest level in three-and-a-half years. Factory pessimism was also reflected in the employment PMI, which fell to its lowest level since May 2020.

“Price indices are in perilous territory. The pace of increase in input prices rose for the second month in a row amid rising fuel prices and reports of sustained wage pressures. Although the increase in output prices slowed slightly, accelerated inputprice inflation could lead to higher output charges.Higher inflation rates would put the European Central Bank into a difficultposition as it more or less signalled at its last meeting that no further rate hikes will be carried out.”

Germany October flash manufacturing PMI 40.7 vs 40.0 expected

Latest data released by HCOB – 24 October 2023

Prior 39.6
Services PMI 48.0 vs 50.0 expected
Prior 50.3
Composite PMI 45.8 vs 46.7 expected
Prior 46.4

There might be an improvement in the manufacturing sector although the bar is evidently set quite low for that. But the more pertinent issue here is that the services sector is also flailing now and that’s a bigger worrying sign for the backbone of the Eurozone economy. HCOB notes that:

“Germany is kicking off the final quarter on a sour note. The HCOB Composite Flash PMI is still stuck in the red this October and even slipped a notch from last month.Therefore, there is much to suggest that a recession in Germany is wellunderway. With the HCOB PMI indices baked into our GDP nowcast, we are calculating a -0.4 percent slip in GDP this quarter, after an estimated -0.8 percent slide the quarter before. If these nowcasts hit the mark, this would result in a -0.8 percent overall growth rate for 2023. This would make the German government’s -0.4 percent shrinkage call seem pretty rosy.

“The PMI results show that the downturn is broad based. Manufacturing output continues to fall at a steep rate and activity in the services sector, which grew last month, swung into the red again. The jobs market is mirroring the trend – services employment is in month two of a gentle decline, while manufacturing, already four months into staff cuts, just hit the gas on layoffs. However, the recent composite PMI employment index readings are still outshining those dreary levels of the 2001/2002 and 2008/2009 recessions.

“Input prices in the German services sector are continuing to rise at an unusual high rate. Increased energy prices and high wage pressures are most likely at the core of this development. Firms are still managing to roll some of those inflated costs onto the customer’s tab, and October did not see much change in that. Thus, there is no reason to pull the plug on inflation concerns.

“Looking for some glimmers of hope? Well, there are, especially in the manufacturing sector. The index of new orders, though at still low levels, has increased for the second month in a row and the output index has jumped above the 40 mark. Together with the increase in the index of stock of purchases, we take these developments as signs that there is some bottoming out happening in this sector. Manufacturing might return to growth territory in the early part of next year.”

Germany November GfK consumer sentiment -28.1 vs -26.6 expected

Latest data released by GfK – 24 October 2023
Prior -26.5; revised to -26.7

That’s another poor reading as consumer morale is set to decline for a third month in a row heading into November, dashing any hopes of a potential recovery in household sentiment before the end of the year. GfK notes that: “The high prices for food are weakening the purchasing power of private households in Germany and ensuring that private consumption will not be a pillar of the economy this year.”

UK October flash services PMI 49.2 vs 49.3 expected

Latest data released by S&P Global – 24 October 2023

Prior 49.3
Manufacturing PMI 45.2 vs 44.7 expected
Prior 44.3
Composite PMI 48.6 vs 48.7 expected
Prior 48.5

The headline reading is a 9-month low and it points to further moderation in overall activity in the services sector. With both manufacturing and services sectors contracting, it indicates a sluggish start to Q4 as the UK economy sits on the brink of a recession. S&P Global notes that:

“The UK economy continued to skirt with recession in October, as the increased cost of living, higher interest rates and falling exports were widely blamed on a third month of falling output.

“The overall pace of decline remains only modest, signalling a mere 0.1% quarterly rate of GDP decline, but gloom about the outlook has intensified in the uncertain economic climate, boding ill for output in the coming months. A recession, albeit only mild at present, cannot be ruled out.

“Encouragingly, cost pressures have continued to moderate, in part helped by reports of lower wage inflation and further falls in prices charged by manufactures. However, selling price inflation for services remains somewhat elevated, and even ticked higher in October, pointing to some stickiness of headline inflation around the 4% mark into the early months of next year.

“In this context, any upward inflation pressures due to higher oil prices will be a major concern, meaning it would be unlikely for policymakers to rule out the possibility of rates rising again later in the year.”

UK August ILO unemployment rate 4.2% vs 4.3% expected

Latest data released by ONS – 24 October 2023

Prior 4.3%
Employment change -82k vs -198k expected
Prior -207k

ECB’s Lagarde to EU officials: Inflation fight is going well

Remarks by ECB president, Christine Lagarde, in a call with EU officials on Monday
Eurozone economy to stagnate in the next few quarters
Risks to inflation have become more balanced
Fiscal impasse is starting to turn into a headache

ECB’s Makhlouf: Far too early to tell consequences of Middle East situation

Remarks by ECB policymaker, Gabriel Makhlouf

We are watching the developments very closely
They are bound to have economic implications for us to some extent
Don’t want to jump to conclusions on extent of impact on economies, monetary policy

Loan demand by firms and households continue to decline sharply – ECB survey

The findings from the ECB’s quarterly Bank Lending Survey

Eurozone banks tightened credit standards further in Q3, more than expected
Decline in net demand for loans was significantly stronger than banks had expected
This is mainly driven by higher interest rates, lower consumer confidence

Other News

China removes defense minister Li Shangfu

The second top-ranked minister to be removed in three months

Chinese defense minister Li Shangfu disappeared from public view two months ago and there was a report that he was under investigation for corruption related to equipment procurement and development.

He hasn’t been seen in weeks and was officially stripped of the top defense post today, with no replacement named. He was only named to the post in March.

Qin Gang, who was removed as foreign minister in July, was further stripped of his state councillor position today as well.

Finally, Chinese President Xi Jinping made an unusual visit to the PBOC today. He had never previously visited the central bank and he also visited the nation’s massive sovereign wealth fund.

Moody’s see weak fundamentals in China’s property sector as a weight in next 12-18 months

Via Moody’s:

Weak fundamentals in China’s property sector will further weigh onChinese developers’ credit quality over the next 12-18 months
State-owned Chinese property developers will outperform market, while privately owned companies will face further strain
Uncertain sales recovery in China’s property sector further cloud rated developers’ ability to restore financial profiles

China set to approve 1 trln yuan in additional sovereign debt issuance today

More info, Reuters citing 3 unnamed sources:

China’s top legislators, the standing committee of the National People’s Congress (NPC), are set to approve the extra debt issuance
Beijing is aiming to begin issuing the debt, which is among the measures the Chinese government is taking to shore up the economy during down cycles, in November
nearly half of the proceeds to be raised from the additional bond issuance would be spent on water conservancy and flood prevention projects, while the rest would be mainly used for post-disaster reconstruction and high-standard farmland construction.

China’s sovereign wealth fund bought ETFs to prop up puking stock market

China’s state fund Central Huijin Investment said late on Monday it had bought exchange-traded funds (ETFs) and it would continue to do so.

Australian data – ANZ-Roy Morgan consumer confidence index 78.2 (prior 76.4)

Australian Weekly ANZ Roy Morgan Consumer Confidence survey remains very weak.

Eyes are on the CPI data due tomorrow from Australia:

In the weekly survey there is a question on consumers expect for inflation ahead:

in this week’s survey inflation expectations jumped by 0.4% to 5.7%, the highest since June of this year

There is a persistent recency bias in this survey. Petrol (gasoline) prices surged helping expectations to move higher.

Australia preliminary PMI: Manufacturing 48.0 (prior 48.7) & Services 47.6 (prior 51.8)

Flash Judo Bank / S&P Global flash PMIs from Australia for October 2023

Commentary from the report. in summary

New orders weakened in October and are below the 50 neutral level, indicative of a soft landing across the economy. The Output and the New Orders Index would have to fall substantially further to be consistent with a broader economic recession.
the slowdown in business activity thus far has not translated into a significant reduction in hiring intentions. Australian businesses are still looking to expand their workforce, consistent with ongoing net new job creation in the official employment report.
Of most significant concern is further evidence of inflation ‘stickiness’. That is, both the input and output price indexes remain elevated and do not signal a return of inflation to the RBA’s target anytime soon.
The RBA will receive the final October readings before the board meeting on Melbourne Cup day. These latest results should not materially impact the interest rate decision. A strong case exists for a further modest upward adjustment to the Australian cash rate target, to ensure the economy remains on the so-called ‘narrow path’.If we are to avoid recession, Australia will needan extended period of below-trend growth to ensure inflation returns to target by 2025.

RBA’s Bullock: Australian dollar relatively stable, not a concern for policy

Remarks by newly appointed RBA governor, Michele Bullock
Focused on brining inflation to target within reasonable timeframe
There are risks inflation could return to target more slowly than forecast
Will not hesitate to raise rates if there is a material upward revision to inflation outlook
Australian dollar is relatively stable in trade-weighted terms, not a policy concern

Japan Jibun preliminary manufacturing PMI for October 48.5 (prior 48.5)

Jibun / S&P Global Preliminary October PMIs for Japan:

Manufacturing 48.5 vs. 48.5 prior
- quickest fall in 8 months
Services 51.1 vs. 53.8 prior
Composite 49.9 vs prior 52.1
- lowest since December 2022

Bank of Japan announces an unscheduled JGB buying operation

Bank of Japan buying

JPY300bn in 5 to 10 years JGBs
and 100 bn JPY in 10-25 year

Toyota near solid-state battery breakthrough: 1,200-km range, 10-min charge

The Financial Times (gated) carried the report on Toyota nears mass production of solid-state batteries.

Other outlets have since picked up the news.

Japanese automaker Toyota is close to being able to manufacture solid-state batteries at the same pace as existing batteries for electric vehicles, the Financial Times (FT) reported on Monday.
Toyota says that mass production of solid-state batteries may start by 2027 or 2028.
breakthrough that could halve the cost and size of these batteries
If successful, Toyota said that solid-state batteries will double the range of EVs up to 1,200 km. The charging time will be 10 minutes or less.

Toyota is working with major Japanese oil company Idemitsu on technology for mass production of solid-state batteries.

Solid-state batteries are different from the currently popular lithium-ion batteries.

A solid-state battery is made up of a cathode, anode, and solid electrolyte
ithium-ion batteries use liquid electrolyte, which places them at risk of damage such as swelling or leakage, they’re also more prone to catching fire

Japan looks set to extend fuel and utility price subsidies through to end April 2024

Reuters citing a draft of the government’s economic stimulus package is reviewed

Japan’s government will extend until the end of April next year subsidies aimed at curbing fuel prices
will also extend until the spring of 2024 subsidies to curb utility bills

South Korea looking to Africa to secure graphite as China tightens export controls

South Korean firms are instead chasing down leads in African countries to secure graphite, a key material used in electric-vehicle batteries.

Cryptocurrency News

Binance challenges CFTC lawsuit again with bid for dismissal as another key executive departs

Binance made a court filing on Monday in response to the US Commodity Futures Trading Commission (CFTC) lawsuit.
The exchange suggested that the commodities regulator is acting beyond the scope of its duties.
In March this year, the CFTC sued Binance for allegedly extending unregistered derivatives products.

Binance, the largest crypto exchange by volume, and its top executives responded to the lawsuit by the US Commodity Futures Trading Commission (CFTC) in a filing on Monday.The commodities regulator sued the exchange, CEO Changpeng “CZ” Zhao, and former Chief Compliance Officer Samuel Lim for legal violations in March.

Binance continues to seek lawsuit dismissal

In the Illinois court filing on Monday, October 23, Defendants Binance, CZ and Lim asked to dismiss the complaint due to the “lack of personal jurisdiction.”

The document stated, “The CFTC’s response brief underscores the pleading deficiencies in the Complaint and confirms that the agency’s overreaching theories of its jurisdiction are unfounded.”

Binance reiterated in its filing that CFTC is trying to regulate a business that operates outside the US soils, underlining its overreach in the case.
The document further argued, “Congress did not make the CFTC the world’s derivatives police, and the Court should reject the agency’s effort to expand its territorial reach beyond what is permitted by the law.”

In March, the CFTC mentioned that Binance violated at least eight trading provisions under its derivatives rule. In response, CZ called the action an “unexpected and disappointing civil complaint.” In July, the top boss of the global exchange filed a motion to dismiss the complaint with a separate filing from the former COO. It was soon after the SEC levered fresh charges against the Binance entities for securities law violations amid a crackdown in several other regions.

The recent submission also raises questions about the CFTC’s treatment of the defendants as a unified entity. “The CFTC acknowledges that the Complaint ‘lumps’ the Foreign Binance Entities together,” the document added. The response also underlines that the CFTC’s attempt to impute the Foreign Binance Entities’ contacts to Mr. Zhao based on an agency relationship cannot be established based on the provided documents and instances.

Bitcoin ETF disappears from DTCC website. Bitcoin gives back some gains

The ticker ‘IBTC’ no longer appears

Bitcoin has fallen $1000 in the past few minutes, wiping out a portion of today’s huge gains.The reason appears to be that the ticker IBTC appears to have disappeared from a list of ETFs on the DTCC website.

When Blackrock’s bitcoin spot ETF first appeared on the site yesterday, it was seen as a sign that the approval of a spot bitcoin ETF was imminent.

It’s no longer there.

I wouldn’t say that changes the odds of a bitcoin spot approval it’s a slam dunk but it might change the timeline. There is obviously a huge front-run ongoing for the spot ETF approval.

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Round up of today’s market news

ByBilals Tech