US stocks gained as yields softened on weak PMI data, while Nvidia also provided a boost - Newsquawk Asia-Pac Market Open

US stocks were higher with gains led by the Nasdaq amid a surge in Communication and Tech names in the build-up to Nvidia's earnings after-hours and with the upside in the major indices supported by a fall in UST yields following a slew of weak PMI data releases from both sides of the pond, while futures extended on gains after the beat on NVDA's results.
USD was choppy and ultimately weakened as yields declined following softer PMI data releases from the US.
Looking ahead, highlights include Japanese Weekly Security Flows, BoK Rate Decision, Supply from Japan.

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Highlights include Japanese Weekly Security Flows, BoK Rate Decision, Supply from Japan.

US TRADE

US stocks were higher with gains led by the Nasdaq amid a surge in Communication and Tech names in the build-up to Nvidia's earnings after-hours and with the upside in the major indices supported by a fall in UST yields following a slew of weak PMI data releases from both sides of the pond, while futures extended on gains after the beat on NVDA's results.
SPX +1.10% at 4,436, NDX +1.60% at 15,148, DJIA +0.54% at 34,472, RUT +1.04% at 1,870.
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NOTABLE HEADLINES

BLS said US payrolls are to be revised down by 306k in the preliminary estimate.
US SEC is to impose new hedge fund and private equity fee disclosures, while the hedge-fund industry has threatened to sue over the rule proposal, according to Bloomberg.
Nvidia (NVDA) Q2 2023 (USD): Adj. EPS 2.70 (exp. 2.09), Revenue 13.51bln (exp. 11.22bln), Co. approved a further 25bln in share buybacks, without expiration.

DATA RECAP

US S&P Global Manufacturing PMI Flash (Aug) 47.0 vs. Exp. 49.3 (Prev. 49.0)
US S&P Global Services PMI Flash (Aug) 51.0 vs. Exp. 52.2 (Prev. 52.3)
US S&P Global Composite Flash PMI (Aug) 50.4 (Prev. 52.0)
US New Home Sales (Jul) 0.714M vs. Exp. 0.705M (Prev. 0.697M)
US Building Permits (Jul) 1.443M (Prev. 1.442M)

US Treasuries bull flattened after weak PMI data and ahead of Jackson Hole while a soft 20-year auction had little impact.

USD was choppy and ultimately weakened as yields declined following softer PMI data releases from the US.
EUR reversed early losses and found support near the 1.0800 level alongside the weak US data.
GBP initially slumped after the contractions in UK PMI figures but later recovered as the dollar weakened.
JPY strengthened with USD/JPY back beneath the 145.00 handle due to narrowing yield differentials.

Crude prices declined but finished well off intraday lows after it pared losses on improved risk sentiment.
US EIA Crude Stocks (W/E Aug 18) -6.1M vs. Exp. -2.9M (Prev. -6.0M)
Dubai set the official differential for November at parity to DME Oman.
Venezuela and the US are reportedly in talks over possible sanctions relief, while the White House said the US is prepared to provide sanctions relief should Venezuela take actions toward restoring democracy leading to free elections but noted that sanctions remain in effect as it has not taken the necessary steps.

Russian fighter jet intercepted a Norwegian military plane over the Barents Sea, while Russia said the craft approached their border, according to TASS.
Russia said 10 people were killed after a private jet crashed in the Tver region north of Moscow and said Wagner Group chief Prigozhin was on board the plane that crashed.
Russian Defence Ministry said Russia and Iran discussed military cooperation, according to Interfax.
North Korea appeared to have fired a missile which prompted Japan’s government to issue an emergency warning for the Okinawa prefecture and told residents to take cover indoors or underground. However, Japan’s government later stated that the missile had flown past and towards the Pacific Ocean, while it also lifted the emergency warning for the Okinawa prefecture.

NOTABLE HEADLINES

Chinese President Xi said BRICS should further expand AI cooperation and constantly improve the safety, reliability, availability and fairness of AI tech.
Chinese regulators will continue to propel domestic companies to seek listings overseas and further facilitate long-term overseas funds to invest in the A-share market, according to Global Times citing the CSRC Vice Chairman.
China policy package to support the development of strategic emerging industries by central enterprises will be introduced at a faster pace, according to China Securities Journal.
US is seeking a six-month extension to the US-China Science and Technology Agreement.
RBI Governor Das said the central bank does not have any specific target for the INR and said they will build forex reserves.

NOTABLE HEADLINES

A mini reshuffle among UK ministers is expected at the end of next week with Defence Secretary Wallace expected to leave and a wider reshuffle is expected in October, according to GBNews.
Spanish parliament speaker set September 26th and 27th as the dates for the investiture vote.

DATA RECAP

UK Flash Manufacturing PMI (Aug) 42.5 vs. Exp. 45.0 (Prev. 45.3)
UK Flash Services PMI (Aug) 48.7 vs. Exp. 51.0 (Prev. 51.5)
UK Flash Composite PMI (Aug) 47.9 vs. Exp. 50.3 (Prev. 50.8)
German HCOB Manufacturing Flash PMI (Aug) 39.1 vs. Exp. 38.7 (Prev. 38.8)
German HCOB Services Flash PMI (Aug) 47.3 vs. Exp. 51.5 (Prev. 52.3)
German HCOB Composite Flash PMI (Aug) 44.7 vs. Exp. 48.3 (Prev. 48.5)
EU HCOB Manufacturing Flash PMI (Aug) 43.7 vs. Exp. 42.6 (Prev. 42.7)
EU HCOB Services Flash PMI (Aug) 48.3 vs. Exp. 50.5 (Prev. 50.9)
EU HCOB Composite Flash PMI (Aug) 47.0 vs. Exp. 48.5 (Prev. 48.6)
EU Consumer Confidence (Aug P) -16.0 vs. Exp. -14.3 (Prev. -15.1)