US stock selling persisted - Newsquawk Asia-Pac Market Open

US stocks extended their losses amid differing opinions on the reason behind the continued downturn including the further upside in long-term yields and zero days to expiration options, while technical selling was also cited. Furthermore, the latest data releases from the US also failed to inspire a turnaround despite a much stronger-than-expected Philly Fed manufacturing index and the decline in Initial Jobless Claimants.
USD finished relatively flat after a choppy session, albeit within thin ranges as market participants await next week's Jackson Hole Symposium and with the week's key risk events in the rearview ahead of a very thin docket on Friday.
Looking ahead, highlights include Japanese National CPI and Malaysian GDP.

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US TRADE

US stocks extended their losses amid differing opinions on the reason behind the continued downturn including the further upside in long-term yields and zero days to expiration options, while technical selling was also cited. Furthermore, the latest data releases from the US also failed to inspire a turnaround despite a much stronger-than-expected Philly Fed manufacturing index and the decline in Initial Jobless Claimants.
SPX -0.77% at 4,370, NDX -1.08% at 14,715, DJIA -0.84% at 34,474, RUT -1.15% at 1,850.
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NOTABLE HEADLINES

Fed Chair Powell is to speak at the Jackson Hole Symposium on August 25th at 10:05EDT/15:05BST.
Former President Trump said if he is re-elected to the White House in 2024, he would not reappoint Fed Chair Powell for another term, according to an interview on Fox Business News.

DATA RECAP

US Leading Index Change MM (Jul) -0.4% vs. Exp. -0.4% (Prev. -0.7%)
US Philly Fed Business Index (Aug) 12.0 vs. Exp. -10.0 (Prev. -13.5)
Manheim Used Vehicle Value Index (First half of August): +0.1% M/M, -7.8% Y/Y
US Initial Jobless Claims (W/E Aug 12) 239.0k vs. Exp. 240.0k (Prev. 248.0k)
US Continued Jobless Claims (W/E Aug 5) 1.72M vs. Exp. 1.70M (Prev. 1.68M)

US Treasuries twisted on Thursday as bond yields continued to hit fresh peaks amid strong US data.

USD finished relatively flat after a choppy session, albeit within thin ranges as market participants await next week's Jackson Hole Symposium and with the week's key risk events in the rearview ahead of a very thin docket on Friday.
EUR was ultimately flat amid light currency newsflow and after failing to sustain a brief foray above 1.0900.
GBP traded slightly firmer but with gains limited after reversing most of its initial advances against the greenback.
JPY eventually outperformed after whipsawing back and forth of the 146.00 level which USD/JPY now sits beneath.
Norwegian Key Policy Rate 4.0% vs. Exp. 4.0% (Prev. 3.75%).

Crude snapped its three-day losing streak amid a choppy dollar and strong US economic data.
Iraq is reportedly seeking to revive its largest oil refinery that was damaged during the war, according to Zawya.
Chile's Centre for Copper and Mining Studies said Chile's Codelco (world's largest copper mine) is at risk of insolvency amid rising costs and growing debt, according to a report seen by Reuters in what was described as a "rare intervention".

NATO Secretary General noted internal discussions about how to end the Ukraine conflict and the way towards peace, while he added that Ukrainians will decide the terms of peace and NATO's role is to support Ukrainians.
Belarusian President Lukashenko said Belarus will use tactical nuclear weapons in the event of aggression and he believes Russia has achieved its goals in the special military operation.
Russian President Putin held a telephone call with Iran’s President in which Iran's possible membership of BRICS was discussed, according to TASS citing the Kremlin.
Iran’s Foreign Minister said he had constructive talks with his Saudi counterpart and "relations between the two countries are moving in the right direction", while he also stated that Iranian President Raisi will visit Saudi Arabia soon.

NOTABLE HEADLINES

China Evergrande (3333 HK) reportedly filed for Chapter 15 bankruptcy in New York.
China’s Commerce Ministry said they are making a comprehensive assessment regarding the US Executive Order restricting foreign investment and will adopt necessary measures based on assessment results. Furthermore, it said China and the US are communicating on relevant arrangements over US Commerce Secretary Raimondo's visit to China.
PBoC said it will keep the yuan rate basically stable and keep liquidity reasonably ample, while it added that prudent policy will be precise and forceful. PBoC will also resolutely prevent over-adjustment risks of the CNY exchange rate.
China reportedly told state banks to escalate yuan intervention this week, according to Bloomberg sources.
US plans on new tariffs on food-can metal from China, Germany and Canada, while the levies announced in response to dumping allegations could raise canned food prices, according to an industry group.
EV batteries and other car parts are set to fall under the scrutiny of Washington as the US looks to stamp out links to forced labour in Chinese supply chains, according to Reuters sources.
Japan is to work with ASEAN members to promote the digital processing of imports and exports to ease bilateral trade, according to Nikkei.

NOTABLE HEADLINES

UK's biggest banks and building societies will have to adhere to new rules guaranteeing access to free cash withdrawals under plans to be set out by the Treasury, according to Sky News sources.