print-icon
print-icon

US stocks declined on return from the holiday weekend amid global debt concerns - Newsquawk Asia-Pac Market Open

Newsquawk Logo
Tuesday, Sep 02, 2025 - 09:45 PM
  • US stocks declined on Tuesday as participants returned from the long Labor Day weekend and were hit by the broader risk aversion amid numerous factors including the US appeals court ruling on Trump tariffs as illegal, geopolitical uncertainty, and the US Commerce Department revoking waivers for Intel/Samsung/SK Hynix/TSMC. Meanwhile, Treasuries saw broad-based selling alongside global fixed income as the US curve bear steepened on trade rulings, global fiscal/political woes, and supply.
  • USD saw broad-based strength against peers amid a risk-off tone which was fuelled by a global rise in bond yields due to concerns over increased debt issuance, while the said factors were more than enough to outweigh the data releases including the latest ISM Manufacturing PMI survey which indicated smaller-than-expected jumps in the headline and employment gauges, while prices paid unexpectedly declined.
  • Looking ahead, highlights include South Korean GDP, Australian GDP, AIG Manufacturing & Construction Indexes, Final Services & Composite PMIs, New Zealand Commodity Prices, Chinese RatingDog Services & Composite PMIs, Supply from Australia.

More Newsquawk in 2 steps:

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

LOOKING AHEAD

  • Highlights include South Korean GDP, Australian GDP, AIG Manufacturing & Construction Indexes, Final Services & Composite PMIs, New Zealand Commodity Prices, Chinese RatingDog Services & Composite PMIs, Supply from Australia.
  • Click for the Newsquawk Week Ahead.

US TRADE

  • US stocks declined on Tuesday as participants returned from the long Labor Day weekend and were hit by the broader risk aversion amid numerous factors including the US appeals court ruling on Trump tariffs as illegal, geopolitical uncertainty, and the US Commerce Department revoking waivers for Intel/Samsung/SK Hynix/TSMC. Meanwhile, Treasuries saw broad-based selling alongside global fixed income as the US curve bear steepened on trade rulings, global fiscal/political woes, and supply.
  • SPX -0.69% at 6,416, NDX -0.79% at 23,231, DJI -0.55% at 45,296, RUT -0.60% at 2,352.
  • Click here for a detailed summary.

TARIFFS/TRADE

  • US President Trump said on the tariff court ruling that they're going to the Supreme Court on Wednesday and need an early decision.
  • US Ambassador to NATO said US President Trump has not put tariffs on China because those negotiations are ongoing and the war in Ukraine is certainly part of that discussion, while he added that Trump “certainly knows that he has those cards to play” and may impose tariffs if he deems them necessary. He also stated that while tariffs on India “have changed their calculation” about purchases of Russian energy, the US “probably not going to foster a closer relationship in trade with India".
  • US has reportedly pulled TSMC's (TSM/2330 TT) waiver for China shipments of chip supplies, according to Bloomberg.
  • Mexico's President Sheinbaum will meet US Secretary of State Rubio on September 3rd at 10:00EDT/15:00BST.
  • German Chancellor Merz is hoping for exorbitant US tariffs on Switzerland to be lowered and said the EU must negotiate further.
  • WTO Director General said they are experiencing the largest disruption to global trade rules in 80 years, while global trade under WTO trade terms has fallen to 72% and could fall further, according to a Reuters interview.

NOTABLE HEADLINES

  • US President Trump said they need a very serious rate cut, while it was also reported that the ruling on Trump's Fed firing is not expected until after September 4th.
  • FHFA Director Pulte said Fed Chair Powell is not holding Fed Governor Cook accountable and that President Trump is looking to get the housing market booming.
  • US President Trump said they're going to send the National Guard to Chicago.
  • US President Trump's Los Angeles troop deployment violated federal law, according to a court ruling, which blocked deploying the National Guard to fight crime, while the injunction is on hold until September 12th.
  • Punchbowl reported that a Continuing Resolution will be needed to avoid a US government shutdown on October 1st, and noted there is no way Congress can pass 12 spending bills by then as there are just 14 legislative days left.

DATA RECAP

  • US S&P Global Manufacturing PMI Final (Aug) 53.0 (Prev. 53.3)
  • US ISM Manufacturing PMI (Aug) 48.7 vs. Exp. 49.0 (Prev. 48.0)
  • US ISM Manufacturing Prices Paid (Aug) 63.7 vs. Exp. 65.3 (Prev. 64.8)
  • US ISM Manufacturing New Orders Index (Aug) 51.4 (Prev. 47.1)
  • US ISM Manufacturing Employment Index (Aug) 43.8 vs. Exp. 44.5 (Prev. 43.4)
  • US Construction Spending MM (Jul) -0.1% vs. Exp. -0.1% (Prev. -0.4%)
  • Atlanta Fed GDPNow (Q3 25): 3.0% (prev. 3.5%)

FX

  • USD saw broad-based strength against peers amid a risk-off tone which was fuelled by a global rise in bond yields due to concerns over increased debt issuance, while the said factors were more than enough to outweigh the data releases including the latest ISM Manufacturing PMI survey which indicated smaller-than-expected jumps in the headline and employment gauges, while prices paid unexpectedly declined.
  • EUR was pressured and slumped beneath the 1.1700 handle against the firmer buck, while the mostly hotter-than-expected EU inflation data and somewhat mixed comments from ECB officials did little to inspire the single currency.
  • GBP underperformed as debt concerns were triggered by rising yields in which the UK 30yr yield hit a 27-year high.
  • JPY weakened and USD/JPY approached just shy of the 149.00 level before paring some of the moves with price action driven by widening yield differentials.

FIXED INCOME

  • T-notes declined and the curve bear steepened following recent trade rulings, global fiscal/political woes and supply.

COMMODITIES

  • Oil prices whipsawed but ultimately gained amid the wider geopolitical backdrop and with the US imposing sanctions targeting Iranian oil.
  • Israeli PM Netanyahu ordered not to proceed with the huge gas agreement between Leviathan and Egypt without his consent, according to Al Jazeera citing Israel's Hayom.

GEOPOLITICAL

MIDDLE EAST

  • Israeli PM Netanyahu said they have destroyed the Iranian axis in Gaza, Lebanon and Syria, while he said in a message to Israeli soldiers that the war in Gaza has reached a decisive stage, according to Al Arabiya and Sky News Arabia.
  • Israeli PM Netanyahu was reportedly holding a meeting to discuss the possibility of full control of the West Bank and measures against the Palestinian Authority, according to Iran International citing i24.
  • US Treasury said it has issued new Iran-related sanctions in which it imposed sanctions on an Iraqi tycoon accused of helping Iran evade restrictions on its oil exports.
  • Secretary of Iran's Supreme National Security Council commented that the path for negotiations with the US is not closed.
  • Yemen's Houthis said they targeted a ship in the northern Red Sea.

RUSSIA-UKRAINE

  • US President Trump commented about Russian President Putin in which he stated that he is "very disappointed in him" and will be doing something to help people live regarding the war in Ukraine, according to the Scott Jennings Radio Show. It was separately reported that President Trump said he is not concerned about the axis forming against the US, including among China and Russia. Furthermore, Trump said regarding Chinese President Xi hosting Russian President Putin and North Korean Supreme Leader Kim, in which he stated that this is not a challenge and "China needs us more than we need them", as well as stated that he may take a different stance on Putin if nothing comes.
  • Russian President Putin said Russia has no intention of attacking anyone and claims about Russia's intention to attack Europe are either a provocation or incompetence, while he added the West and NATO are trying to absorb the post-Soviet space and "we have to react to this". Putin said Russia is now responding seriously to Ukrainian attacks on energy infrastructure and that Ukraine's membership of NATO remains unacceptable to Russia, while he believes there is an opportunity to find a consensus in the context of matters discussed in the Alaska summit.
  • Russia and US foreign ministers are to hold consultations, according to Interfax.
  • Ukrainian President Zelensky said Russia is engaged in a new troop buildup in certain sectors and continues to launch strikes on Ukraine.
  • Ukrainian President Zelensky is to meet European officials in Paris, France in order to synchronise views on security guarantees.
  • Ukrainian Foreign Ministry said the Zaporizhzhia nuclear power plant is a part of Ukraine and will never agree to legalise its Russian occupation, while it added the only way to guarantee safety at the NPP is the full and immediate withdrawal of Russian troops.
  • German Chancellor Merz suggested Geneva as the location for Ukraine-Russia ceasefire talks, while Merz will take part by video in a meeting on Thursday where security guarantees will be discussed.
  • Turkish President Erdogan discussed the Ukraine war with Russian President Putin and Ukrainian President Zelensky, while he said "they are not yet ready" for a leaders' meeting.
  • Russian defence ministry reported the capture of Fedorivka in eastern Ukraine.
  • Russia and India discussed the possibility of expanding S-400 supplies, according to TASS.

ASIA-PAC

NOTABLE HEADLINES

  • Japanese PM Ishiba said there is a responsibility for addressing various challenges the LDP faces and will decide on responsibility at the appropriate time.

EU/UK

NOTABLE HEADLINES

  • UK Chancellor Rachel Reeves has pencilled in November 26 for the date of the Budget, according to Huffington Post.
  • UK is in advanced talks to build warships for Denmark and Sweden, according to FT.
  • ECB's Muller said it makes sense to keep rates on hold for a while and watch the economy, while he added that looking at recent data, “we could still assume that we are more or less on the path that was already there during the last round of projections for the ECB". Furthermore, Muller said “In light of all of this turmoil that we have seen in the recent past, starting with the trade policy in the US, also the impact of war in Ukraine that we have now for a number of years, the economy has held up quite well in Europe”.
  • ECB's Simkus said "additional negative information might lead us to discuss a cut again in October", while he added "More true than not" that another cut is coming and it is just a matter of timing, according to Econostream on X.
  • ECB's Villeroy said inflation is well under control and noted an urgency to tackle the French deficit and debt challenges. Villeroy commented that now more than ever is the time to reduce excessive French debt and to wait to attack the French debt problem would lead to a more painful solution, while he added that efforts to reduce debt must be fair and shared by the entire nation.

DATA RECAP

  • EU HICP Flash YY (Aug) 2.1% vs. Exp. 2.0% (Prev. 2.0%)
  • EU HICP-X F&E Flash YY (Aug) 2.3% vs. Exp. 2.3% (Prev. 2.4%)
  • EU HICP-X F,E,A&T Flash YY (Aug) 2.3% vs. Exp. 2.2% (Prev. 2.3%)
Loading...