- US stocks were firmer to start the week in light newsflow amid a lack of tier-1 releases and the Fed on a blackout period. Nonetheless, all sectors aside from Communication Services gained with Financials, Industrials, and Consumer Discretionary the best performers with the latter two buoyed by Boeing (BA) and Tesla (TSLA), respectively, while Apple (AAPL) shares were flat after its Glowtime Event, where the tech giant announced the new iPhone 16 with Apple Intelligence, alongside a new Watch and AirPods, proved to be a damp squib.
- USD was firmer to start the week, albeit in thin newsflow with the Fed in a blackout period ahead of next week's meeting while participants also await the US Presidential Debate on Tuesday and the latest US CPI data on Wednesday.
- Looking ahead, highlights include New Zealand Manufacturing Sales, Australian Westpac Consumer Sentiment & NAB Business Surveys, Chinese Trade Data, Supply from Australia & Japan.
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LOOKING AHEAD
- Highlights include New Zealand Manufacturing Sales, Australian Westpac Consumer Sentiment & NAB Business Surveys, Chinese Trade Data, Supply from Australia & Japan.
- Click for the Newsquawk Week Ahead.
US TRADE
- US stocks were firmer to start the week in light newsflow amid a lack of tier-1 releases and the Fed on a blackout period. Nonetheless, all sectors aside from Communication Services gained with Financials, Industrials, and Consumer Discretionary the best performers with the latter two buoyed by Boeing (BA) and Tesla (TSLA), respectively, while Apple (AAPL) shares were flat after its Glowtime Event, where the tech giant announced the new iPhone 16 with Apple Intelligence, alongside a new Watch and AirPods, proved to be a damp squib.
- SPX +1.2% at 5,471, NDX +1.3% at 18,661, DJIA +1.2% at 40,830, RUT +0.3% at 2,097.
- Click here for a detailed summary.
NOTABLE HEADLINES
- Apple (AAPL) CEO Cook announced the new iPhone, watches and AirPods.
- NY Fed SCE (Aug) 1yr inflation expectation was unchanged at 3%, while the 3yr view rose to 2.5% (prev. 2.3% in July) and 5yr inflation expectation was unchanged at 2.8%.
DATA RECAP
- US Wholesale Inventories MM (Jul) 0.2% vs. Exp. 0.3% (Prev. 0.3%)
- US Wholesale Sales MM (Jul) 1.1% vs. Exp. 0.2% (Prev. -0.6%, Rev. -0.3%)
FX
- USD was firmer to start the week, albeit in thin newsflow with the Fed in a blackout period ahead of next week's meeting while participants also await the US Presidential Debate on Tuesday and the latest US CPI data on Wednesday.
- EUR remained subdued and retreated further beneath the 1.1100 handle amid the dollar strength and with the ECB widely expected to cut rates later this week.
- GBP gave way to the firmer buck which saw GBP/USD relinquish the 1.3100 status amid light UK-specific catalysts.
- JPY was pressured with USD/JPY back at the 143.00 handle to snap a four-day losing streak for the major pair.
FIXED INCOME
- T-notes saw mixed price action amid light newsflow and with the longer-end bid ahead of 3yr, 10yr, and 30yr auctions later this week.
COMMODITIES
- Oil prices rebounded from some of the recent heavy selling amid concerns Tropical Storm Francine could disrupt production and refining along the US Gulf Coast.
- US DoE announced contracts awarded for the acquisition of 3.4mln bbls for the SPR.
- Libya's NOC declared a force majeure on several crude cargoes loading from Es Sider Port last week but did not declare it on all loadings, according to Reuters citing sources.
GEOPOLITICAL
MIDDLE EAST
- Israeli military detained a convoy of UN vehicles in the northern Gaza strip and has intelligence indicating a number of 'Palestinian suspects' are in the convoy.
- US President Biden will convene his national security team to discuss the impasse in negotiations on the hostage deal, according to Axios’s Barak Ravid citing sources.
- Iran’s Ministry of Foreign Affairs said the path to an agreement remains open and there is a chance to revive the Joint Comprehensive Plan of Action provided that the other parties return to the terms of the deal, according to Abas Aslani on X.
OTHER
- Ukraine's Foreign Ministry said it summoned Iran's charge d'affaires and warned Iran about the consequences of missile deliveries.
- European Council is to agree on September 11th to extend personal sanctions against Russia for an additional 6 months, according to Asharq News.
- White House said it cannot confirm the report of an Iranian missile transfer to Russia, while it also stated China holding naval air drills with Russia is a sign of deepening cooperation.
ASIA-PAC
NOTABLE HEADLINES
- Japan's ruling LDP said inflation is still weak when excluding external factors and it cannot say that Japan has achieved the BoJ's 2% inflation target.
EU/UK
NOTABLE HEADLINES
- French Finance Minister Le Maire said they can and must meet the 2024 deficit target of 5.1% of GDP, while he added that tax revenue may be weaker than expected.
- Former ECB President Draghi's report stated that the EU must spend an additional EUR 750bln per year to compete globally and called for the EU to move towards regular joint debt issuance. It was later reported that the German Finance Minister said he welcomes all of Draghi's proposals but added that joint borrowing by the EU will not solve structural issues.
- German interior minister will reportedly order temporary internal border controls at all German land borders in a move to control migration, according to a government source cited by Reuters.
DATA RECAP
- EU Sentix Index (Sep) -15.4 vs. Exp. -12.5 (Prev. -13.9)
