US stocks managed to hold onto their gains while the US curve bull steepened - Newsquawk Asia-Pac Market Open

US stocks managed to hold onto their gains seen in the US morning with the SPX and NDX both seeing gains of c. 0.5%, while the RUT outperformed.
US curve bull steepened on Monday in quiet trade with supply limiting the upside in the front end and belly ahead of key risk events later in the week.
The Dollar was marginally weaker to start the week, albeit on very thin newsflow and narrow parameters, highlighted by the index printing a high of 104.180 vs. a low of 103.970.
Crude futures were slightly divergent to start the week, albeit within narrow ranges, in thin headline newsflow as attention lies on weather updates and, for gas, further Australian Chevron strike updates.
Looking ahead, highlights include Japanese jobs data and a 2yr JGB Auction.

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US TRADE

US stocks managed to hold onto their gains seen in the US morning with the SPX and NDX both seeing gains of c. 0.5%, while the RUT outperformed.
SPX +0.63% at 4,433, NDX +0.74% at 15,052, DJIA +0.62% at 34,559, RUT +0.83% at 1,869.
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US Treasuries curve bull steepened on Monday in quiet trade with supply limiting the upside in the front end and belly ahead of key risk events later in the week.
US sold USD 45bln in 2yr notes; High Yield: 5.024% (prev. 4.823%, six-auction average 4.398%); WI 5.028%. Tail: -0.4bps (prev. 0.3bps, six-auction avg. 0.2bps). Bid-to-Cover: 2.94x (prev. 2.78x, six-auction avg. 2.71x). Dealers: 14.98% (prev. 13.8%, six-auction avg. 16.7%). Directs: 20.01% (prev. 20.8%, six-auction avg. 20.3%). Indirects: 64.22% (prev. 65.4%, six-auction avg. 63.0%)
US sold USD 46bln in 5yr notes; High Yield: 4.400% (prev. 4.17%, six-auction average 4.372%). WI: 4.399%. Tail: 0.1bps (prev. 0.4bps, six-auction avg. -0.3bps). Bid-to-Cover: 2.54x (prev. 2.60x, six-auction avg. 2.71x). Dealers: 13.8% (prev. 13.49%, six-auction avg. 12.2%). Directs: 18.3% (prev. 22.13%, six-auction avg. 19.0%). Indirects: 67.9% (prev. 64.38%, six-auction avg. 68.8%).

Dollar was marginally weaker to start the week, albeit on very thin newsflow and narrow parameters, highlighted by the index printing a high of 104.180 vs. a low of 103.970.
AUD, NZD, GBP, and CAD were relatively contained against the Greenback but outperformance was seen by the Aussie amid tailwinds from an upward revision to final retail sales and more Chinese initiatives aimed at propping up equities.
EUR and CHF saw marginal gains, while the JPY was the G10 underperformer and witnessed mild losses vs. the Buck.
Scandis were mixed, with SEK seeing strong gains vs the buck and the NOK flat against the Buck.
EMFX was mixed, with RUB, ZAR, and TRY seeing gains, Yuan flat, while BRL, MXN, and HUF saw losses.

Crude futures were slightly divergent to start the week, albeit within narrow ranges, in thin headline newsflow as attention lies on weather updates and, for gas, further Australian Chevron strike updates.
NHC said storm surge and hurricane warnings issues for sections of the west coast of Florida, Tropical Storm Idalia located around 80miles SSW.
Chevron (CVX) Australia spokesperson received notices for PIA at Gorgon, Wheatstone facilities for activities commencing 7 Sept; recognise employees have right to take PIA, will take steps to maintain "safe and reliable options" will continue to work through bargaining process and seek outcomes in interests of both employees and the company.

US and China plan to hold at least annual meetings on export control information exchange, according to Reuters.
Russia reportedly scrambled two jets due to US drones over Crimea, according to Tass.
China said the meeting between Commerce Secretary Wang and US Commerce Secretary Raimondo was rational, frank and constructive, they discussed issues including tariffs and chips policy, and also concerns over investment limits and sanctions, according to Reuters.

NOTABLE HEADLINES

China has asked some funds to refrain from net equity sales in order to boost the market, according to Bloomberg News

NOTABLE HEADLINES

ECB's Nagel said we will see what we have to do in September, I will give no signals today. He is awaiting next data before making a decision, and should avoid any case if needing the Bank Resolution Framework, but is confident it would work if needed, according to Reuters.
ECB's Holzmann sees the case for rate hike if no surprises turn up; says should start debate on ending PEPP reinvestments, according to Bloomberg. Adding that the ECB behind the curve, can assess policy once at 4%.