US stocks were mixed on Thursday with NDX outperforming, SPX and RUT flat while the Dow lagged - Newsquawk Asia-Pac Market Open

US stocks were mixed on Thursday with NDX outperforming, SPX and RUT flat while the Dow lagged.
The Dollar was firmer on Thursday and hit a high of 103.740 amid EUR weakness and month-end models pointing towards Dollar buying.
The Treasury curve was bid across the curve with futures continuing their ascent into month-end ahead of NFP.
The crude complex, once again, saw a choppy session but settled at session highs as WTI and Brent look set to snap their two-week losing streak
Looking ahead, highlights include BoJ Annual Review 2023, Australian and Japanese PMIs, South Korean Trade Balance, and Chinese Caixin manufacturing PMI.

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1st September 2023

US TRADE

US stocks were mixed on Thursday with NDX outperforming, SPX and RUT flat while the Dow lagged.
SPX -0.16% at 4,507, NDX +0.25% at 15,501, DJIA -0.48% at 34,721, RUT -0.19% at 1,899.
Click here for a detailed summary.

NOTABLE HEADLINES

US Energy Secretary Granholm said the US is making up to USD 12bln available for automakers and suppliers to retrofit facilities to produce EVs, according to Reuters.
US White House has asked Congress for a short-term extension of gov't funding in order to advert a shutdown during budget talks, via Washington Post.

DATA RECAP

US Cont Jobless Clm* (W 19 Aug) w/e 1.725M vs. Exp. 1.703M (Prev. 1.702M)
US Consumption, Adjusted MM* (Jul 2023) 0.8% vs. Exp. 0.7% (Prev. 0.5%)
US Jobless Clm 4Wk Avg* (W 26 Aug) w/e 237.5k (Prev. 236.75k)
US Initial Jobless Clm* (W 26 Aug) w/e 228.0k vs. Exp. 235.0k (Prev. 230.0k, Rev. 232k)
US PCE Price Index MM* (Jul 2023) 0.2% vs. Exp. 0.2% (Prev. 0.2%)
US PCE Price Index YY * (Jul 2023) 3.3% vs. Exp. 3.3% (Prev. 3.0%)
US Core PCE Price Index YY* (Jul 2023) 4.2% vs. Exp. 4.2% (Prev. 4.1%)
US Core PCE Price Index MM * (Jul 2023) 0.2% vs. Exp. 0.2% (Prev. 0.2%)
US Personal Income MM* (Jul 2023) 0.2% vs. Exp. 0.3% (Prev. 0.3%)
US Personal Consump Real MM* (Jul 2023) 0.6% (Prev. 0.4%)
US Chicago PMI* (Aug 2023) 48.7 vs. Exp. 44.1 (Prev. 42.8).
US Challenger Layoffs (Aug 2023) 75.151k (Prev. 23.697k); jump primarily led by the Yellow Corp bankruptcy.
US Dallas Fed PCE* (Jul 2023) 2.4% (Prev. 2.5%)
US 30-yr fixed rate mortgages 7.18% in w/e August 31st (prev. 7.23% W/W) - Freddie Mac

The Dollar was firmer on Thursday and hit a high of 103.740 amid EUR weakness and month-end models pointing towards Dollar buying.
EUR was the clear G10 underperformer and saw steep losses against the Buck, highlighted by EUR/USD hitting a low of 1.0836 against an earlier peak of 1.0939.
AUD, NZD, and CAD were all flat against the Dollar and truth be told the respective crosses traded within narrow parameters.
CHF and GBP saw losses, with the Swiss currency's weakness appearing to be on positioning and month-end woes as opposed to anything currency-specific.
JPY was the clear outperformer, noticing strong gains against the Greenback with desks citing month-end factors. As such, USD/JPY hit a low of 145.36 after an earlier peak of 146.24.
EMFX was mixed. Yuan, RUB, TRY saw gains, while BRL, MXN, and ZAR all saw losses vs. the Buck. TRY benefitted from firmer than expected Turkish GDP in advance of the CBRT underscoring guidance for more tightening as appropriate.

The Treasury curve was bid across the curve with futures continuing their ascent into month-end ahead of NFP.

The crude complex, once again, saw a choppy session but settled at session highs as WTI and Brent look set to snap their two-week losing streak.
Russia's Deputy PM Novak said we will tell new main parameters of OPEC+ deal next week, agreed with OPEC+ on further actions, according to Reuters.
Russian Foreign Minister Lavrov said Russia is committed to increasing gas exports to Turkey and the gas hub, according to Reuters.
Russian Foreign Minister Lavrov said we do not see any new guarantees on the grain deal, according to Reuters.
US Nat Gas-EIA Implied Flow* (W 25 Aug) w/e 32.0bcf (Prev. 18.0bcf).

US Commerce Department said the Biden admin has not blocked chip sales to the Middle East, according to Reuters.

NOTABLE HEADLINES

China's Industrial Bank to cut Yuan deposit rates: 1yr by 10bp and 2yr by 20bp, effective September 1st, according to Reuters.
PBoC lowers down payment for first and second time home buyers. Rate floor for first-home and second-home purchases adj. to no lower than LPR +20bp. Lowering existing mortgage rate beneficial for expanded consumption/investment, according to Rerters.
Japan's major five banks are to increase housing loan interest rates by 0.1% to 0.2%, according to Jiji News.

NOTABLE HEADLINES

ECB's Holzmann said August inflation data is a conundrum for the ECB; we are not yet at the highest level for rates, another hike or two is possible. Data shows that inflation is still persistent. As long as the labour market is hot, difficult to convince workers to accept lower wage rises. ECB should consider needing PEPP reinvestments before the end of next year. Based on current data, would not exclude a rate hike in September but hasn't made mind up yet. Much closer to terminal rate but likely not there yet.
ECB's de Guindos said the latest data from July and August point towards economic deceleration in Q3 and probably in Q4, and the ECB needs to keep working to bring inflation back to 2% target. He said the latest data from inflation in August has been very similar to July, and the rate decision in September is still up for debate. He said data in next days key to September ECB decision, according to Reuters.
ECB MINUTES: further rate hike in Sept would be necessary if there was no convincing evidence that the effect of the cumulative tightening was strong enough, but probable that the September projections would revise the inflation path sufficiently downward.

DATA RECAP

EU HICP-X F&E Flash YY (Aug 2023) 6.2% vs. Exp. 6.3% (Prev. 6.6%)
EU HICP Flash YY (Aug 2023) 5.3% vs. Exp. 5.1% (Prev. 5.3%)
EU HICP-X F,E,A&T Flash YY (Aug) 5.30% vs. Exp. 5.30% (Prev. 5.50%)
EU Unemployment Rate (Jul 2023) 6.4% vs. Exp. 6.4% (Prev. 6.4%)
Italian CPI (EU Norm) Prelim YY (Aug 2023) 5.5% vs. Exp. 5.6% (Prev. 6.3%)
Italian CPI (EU Norm) Prelim MM (Aug 2023) 0.2% vs. Exp. 0.3% (Prev. -1.6%)
Italian Consumer Price Prelim YY (Jul 2023) 5.5% vs. Exp. 6.1% (Prev. 6.4%)
Italian Consumer Price Prelim MM (Aug 2023) 0.4%