Tentative trade with catalysts light, GBP awaits jobs data - Newsquawk Europe Market Open

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Tuesday, Sep 12, 2023 - 05:21 AM
  • APAC stocks were mixed with the region tentative in the absence of any fresh macro catalysts.
  • European equity futures are indicative of a slightly higher open with Euro Stoxx 50 future +0.2% after the cash market closed up 0.4% yesterday.
  • DXY was contained above 104.50, EUR/USD and USD/JPY are steady on 1.07 and 146 handles respectively, Cable eyes jobs data
  • Australia union said it wants industrial action to continue until it secures a union-negotiated deal at Australian LNG facilities, according to Reuters
  • Looking ahead, highlights include UK Labour Data, German Wholesale Prices, German & EZ ZEW, US NFIB Business Optimism Index, BoE’s Mann, Supply from Netherlands, UK & US.



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  • US stocks were firmer with the Nasdaq leading the charge ahead of Wednesday's CPI data, while Russell 2k and the DJIA were notable laggards. US macro catalysts were on the light side with mixed NY Fed consumer inflation expectations the 'highlight' and WSJ's Timiraos article from the weekend festered which suggested a dovish shift in the Fed's rate path was underway.
  • SPX +0.67% at 4,487, NDX +1.19% at 15,461, DJIA +0.25% at 34,663, RUT +0.19% at 1,855.
  • Click here for a detailed summary.


  • US Deputy Treasury Secretary Adeyemo said it makes sense to think about eliminating corporate subsidies including to energy companies and the US is well positioned to withstand headwinds from China's economic slowdown. Furthermore, he is encouraged that they haven't seen a pullback in banks providing credit after banking issues in late winter and early spring.
  • US House Speaker McCarthy said a government shutdown can be avoided and he is not worried about being ousted as speaker.



  • APAC stocks were mixed with the region tentative in the absence of any fresh macro catalysts and with participants bracing for the US CPI data due midweek.
  • ASX 200 was lacklustre amid weakness in energy, tech and financials, with trade also contained after a somewhat mixed business survey and weaker consumer sentiment data.
  • Nikkei 225 gained amid strength in automakers and with SoftBank among the early leaders after its Arm unit IPO was oversubscribed by 10 times although price action was choppy and the index nearly pared all of its gains before revisiting session highs.
  • Hang Seng and Shanghai Comp traded ultimately flat with early downside cushioned following the PBoC's liquidity effort and after Country Garden Holdings received approval to extend 6 onshore bond repayments by 3 years.
  • US equity futures were uneventful as participants now look towards the Apple event later today.
  • European equity futures are indicative of a slightly higher open with Euro Stoxx 50 future +0.2% after the cash market closed up 0.4% yesterday.


  • DXY was uneventful with price action confined to a tight range near the 104.50 level after the prior day’s weakness and with participants lacking firm commitment ahead of the upcoming key events.
  • EUR/USD struggled for direction with Thursday’s ECB’s rate decision seen almost as a coin flip.
  • GBP/USD was contained as the attention turns to today’s UK employment and average earnings data.
  • USD/JPY eked slight gains but with upside capped as Japanese yields nudged higher.
  • Antipodeans were choppy after mixed Australian data and New Zealand’s pre-election fiscal update which saw the forecast of the timing for the government to return to an operating surplus pushed back.
  • PBoC set USD/CNY mid-point at 7.1986 vs exp. 7.2859 (prev. 7.2148)


  • 10yr UST futures remained lacklustre after the prior day’s bear-steepening owing to the recent themes in the Asia-Pac region and with prices not helped by corporate supply and a poor US 3yr auction.
  • Bund futures languished near the prior day’s lows ahead of German WPI and ZEW data releases.
  • 10yr JGB futures were subdued amid the residual effects on yields from BoJ Governor Ueda’s recent rhetoric and following mixed results at the 5yr JGB auction.


  • Crude futures traded marginally higher but with gains capped amid the flimsy risk tone, while attention for the complex turns to the weekly inventories beginning with the private sector data due later today.
  • Saudi Arabia stresses commitment to being a reliable partner and source of crude oil supplies to India, according to a joint statement.
  • Libya declared eastern Cyrenaica province a disaster area and requested international help.
  • Australia union said it is to oppose Chevron's (CVX) intractable bargaining application and it wants industrial action to continue until it secures a union-negotiated deal at Australian LNG facilities, according to Reuters.
  • Spot gold was little changed alongside the flat performance of the greenback.
  • Copper futures traded rangebound owing to the tentative mood across Asia.
  • India imposed anti-dumping duty on some Chinese steel for five years.


  • Bitcoin clawed back the prior day's losses after rebounding from a brief dip beneath the USD 25,000 level.


  • US State Department said the US expects Secretary of State Blinken to host Chinese Foreign Minister Wang Yi in the US before year-end.
  • Country Garden Holdings (2007 HK) received approval to extend 6 onshore bond repayments by 3 years and it delayed the voting deadline on two bond payment extensions to Tuesday evening.
  • New Zealand pre-election economic and fiscal update sees 2023/24 operating balance before gains and losses at NZD -11.4B (Budget forecast NZD -7.6bln), while it sees net at 43.6% of GDP (Budget forecast 43.1%) and expects to return to an OBEGAL surplus in 2026/2027 (Budget forecast of 2025/26).


  • Australian Westpac Consumer Confidence Index (Sep) 79.7 (Prev. 81.0)
  • Australian Westpac Consumer Sentiment MM (Sep 2023) -1.5% (Prev. -0.4%)
  • Australian NAB Business Confidence (Aug) 2.0 (Prev. 2.0)
  • Australian NAB Business Conditions (Aug) 13.0 (Prev. 10.0)


  • US President Biden's administration is close to approving long-range missiles including ATACMS or GMLRS both armed with cluster bombs for Ukraine, while these missiles would give Kyiv the ability to cause significant damage deeper within Russia-occupied territory, according to Reuters citing four US officials.
  • US Secretary of State Blinken confirmed they exercised a waiver to allow the transfer of USD 6bln from South Korea to Qatar as part of a US-Iran prisoner swap, according to Reuters.
  • North Korean leader Kim left Pyongyang on Sunday to visit Russia and his train arrived at Khasan Station in Russia's far east, while the White House urged North Korea not to provide weapons to Russia.
  • Kremlin spokesman said Russian President Putin and North Korean leader Kim will discuss bilateral ties and seek to build good, mutually beneficial relations, while a spokesman also stated that Russia is not interested in Washington's warnings on Moscow's contact with North Korea.
  • Taiwan's Ministry of Defence 2023 National Defence Report stated that China's military intimidation and intrusions are a new normal and China is using grey-zone tactics to change the status quo.