US stocks finished lower as markets braced for Nvidia earnings although futures received a boost after-hours after the Co. results topped forecasts and announced a 10-for-1 stock split - Newsquawk Asia-Pac Market Open

US stocks were lower with underperformance in the small-cap Russell 2000 as traders awaited the pivotal Nvidia earnings after-hours and with mild hawkish headwinds following hotter-than-expected CPI data from the UK and after the FOMC Minutes noted that recent data had not increased confidence in progress towards the 2% inflation goal and suggested the disinflation process would take longer than previously thought. Nonetheless, futures saw some support after-hours following Nvidia's earnings which topped forecasts and the Co. also announced a ten-for-one stock split.
USD mildly strengthened although remained within contained ranges and stalled just shy of the 105.00 level on a day with no Fed speakers and a light US data calendar, while the FOMC Minutes garnered little market reaction as not much new was said in which the highlight was that participants assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.
Looking ahead, highlights include New Zealand Retail Sales, Australia & Japan Flash PMIs, Singapore GDP & CPI, BoK Rate Decision.

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Highlights include New Zealand Retail Sales, Australia & Japan Flash PMIs, Singapore GDP & CPI, BoK Rate Decision.
Click here for the Newsquawk Week Ahead.

US TRADE

US stocks were lower with underperformance in the small-cap Russell 2000 as traders awaited the pivotal Nvidia earnings after-hours and with mild hawkish headwinds following hotter-than-expected CPI data from the UK and after the FOMC Minutes noted that recent data had not increased confidence in progress towards the 2% inflation goal and suggested the disinflation process would take longer than previously thought. Nonetheless, futures saw some support after-hours following Nvidia's earnings which topped forecasts and the Co. also announced a ten-for-one stock split.
SPX -0.27% at 5,306, NDX -0.05% at 18,705, DJIA -0.51% at 39,671, RUT -0.79% at 2,081.
Click here for a detailed summary.

FOMC MINUTES

FOMC Minutes stated that participants assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%, while participants noted recent data had not increased confidence in progress towards the 2% inflation goal and suggested the disinflation process would take longer than previously thought. Various participants mentioned a willingness to tighten policy further should risks to the outlook materialise and make such action appropriate. Furthermore, many participants commented on uncertainty about the degree of policy restrictiveness and almost all participants supported the decision to begin to slow the pace of decline of the central bank's securities holdings, while a few could have supported a continuation of the previous pace.

NOTABLE HEADLINES/EARNINGS

US House Committee advanced a bill that would make it easier for President Biden to enforce export curbs on AI systems.
NVIDIA Corp (NVDA) Q1 2024 (USD): Adj. EPS 6.12 (exp. 5.57), Revenue 26.04bln (exp. 24.57bln); announced ten-for-one forward stock split and cash dividend raised 150% to USD 0.01/shr on a post-split basis.

DATA RECAP

USD mildly strengthened although remained within contained ranges and stalled just shy of the 105.00 level on a day with no Fed speakers and a light US data calendar, while the FOMC Minutes garnered little market reaction as not much new was said in which the highlight was that participants assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.
EUR gave up ground to the firmer buck and as comments from ECB officials continue to signal a June rate cut.
GBP was initially boosted by hotter-than-expected inflation data but then returned to flat territory against the dollar, while UK PM Sunak announced to hold the general election on July 4th.
JPY mildly weakened again which saw USD/JPY gain a firmer footing at the 156.00 handle.

Treasuries were lower with early headwinds after firmer-than-expected UK CPI data, while the FOMC Minutes noted participants assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.

Oil prices saw further weakness in a continuation of the recent trend and after bearish crude inventory data.
US EIA Weekly Crude Stocks 1.825M vs. Exp. -2.55M (Prev. -2.508M)
Kazakhstan resumed gasoline exports in May after a 2-year hiatus and shipped fuel to Georgia, according to Reuters citing sources.
Russia is reportedly planning to open a sea terminal for LPG exports to Asia by end-2025, according to Reuters sources.

MIDDLE EAST

Israeli army expanded its incursion in Rafah city and Israeli forces seized control of over half of the area adjacent to the Egyptian border, according to Anadolu Agency, while Times of Israel reported that the IDF deployed a fifth brigade to Rafah as it expanded operations in the southern Gaza city.
White House National Security spokesperson said US President Biden believes a Palestinian state should be realised through negotiations not unilateral recognition.
EU countries reportedly agreed on 10 new subjects to be added to Iran sanctions, according to Reuters citing sources.

Spot Ether ETF applicants amended their filings and the US SEC contacted exchanges looking to list the ETFs, according to Cointelegraph.

NOTABLE HEADLINES

PBoC is guiding banks to accelerate the pace of lending this month, according to Reuters sources.
Chinese Foreign Ministry took countermeasures against 12 US firms and their senior executives including Lockheed Martin (LMT) in which it will not issue visas and banned senior executives from entering China, while Raytheon (RTX) was also named as a target of measures.
US Trade Representative posted new details on the proposed tariffs on Chinese imports in which many proposed tariff hikes would take effect on August 1st, while any exclusions granted from new Chinese tariffs will be effective through May 31st 2025.

NOTABLE HEADLINES

UK PM Sunak confirmed reports that he will call for a general election on July 4th. It was earlier reported that letters were going in calling for a no-confidence vote on UK PM Sunak, according to BBC's Watt citing a Tory rebel source.
ECB's Rehn said there is a strong case to start ECB easing in June and the Eurozone is seeing moderating wage growth, while he is not pre-committing to any rate path and said what the Fed does, does not determine if the ECB cuts rates, according to Bloomberg.
ECB's Schnabel said if data confirms the outlook, a June cut is likely and she sees a slight revival in the Euro-area economy, while she added that inflation is likely to return to 2% without a recession.

DATA RECAP

UK CPI MM (Apr) 0.3% vs. Exp. 0.2% (Prev. 0.6%)
UK CPI YY (Apr) 2.3% vs. Exp. 2.1% (Prev. 3.2%)
UK Core CPI MM (Apr) 0.9% vs. Exp. 0.7% (Prev. 0.6%)
UK Core CPI YY (Apr) 3.9% vs. Exp. 3.6% (Prev. 4.2%)
UK CPI Services MM (Apr) 1.50% vs. Exp. 1.10% (Prev. 0.60%)
UK CPI Services YY (Apr) 5.90% vs. Exp. 5.50% (Prev. 6.00%)