US stocks were mostly lower after disappointing data and Apple's WWDC - Newsquawk Asia-Pac Market Open

US stocks finished mostly lower after a 'sell the news' reaction to the announcement of Apple's (AAPL) VR headset unwound the earlier strength, while participants also digested several data releases including the weaker-than-expected ISM Services PMI and US Factory Orders.
USD began the week in a choppy fashion with trade contained within tight ranges amid thin newsflow although softened after disappointing ISM Services PMI data for May reversed some of the post-NFP gains in the buck.
Highlights include Japanese Household Spending & Average Cash Earnings, New Zealand ANZ Commodity Prices, Australian Building Approvals & Net Exports Contribution, RBA Rate Decision, Supply from Japan, Holiday in South Korea.

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LOOKING AHEAD

Highlights include Japanese Household Spending & Average Cash Earnings, New Zealand ANZ Commodity Prices, Australian Building Approvals & Net Exports Contribution, RBA Rate Decision, Supply from Japan, Holiday in South Korea.

US TRADE

US stocks finished mostly lower after a 'sell the news' reaction to the announcement of Apple's (AAPL) VR headset unwound the earlier strength, while participants also digested several data releases including the weaker-than-expected ISM Services PMI and US Factory Orders.
SPX -0.20% at 4,273, NDX +0.07% at 14,556, DJIA -0.59% at 33,562, RUT -1.32% at 1,806.
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NOTABLE HEADLINES

Apple (AAPL) announced its new M2 Ultra chip which features in the new Mac Studio and Mac Pro, while it announced its VR headset, Apple Vision Pro, which augments reality by "seamlessly" blending the digital world with the real world and partners with Disney (DIS) on content for the headset. Disney+ is to be available on the Vision Pro and it is working with Unity (U) to bring apps to the Vision Pro, while the Vision Pro price will start at USD 3,499 and will not be available until 2024 with availability in the US only at first and other countries later in the year.

DATA RECAP

US Factory Orders MM (Apr) 0.4% vs. Exp. 0.8% (Prev. 0.9%, Rev. 0.4%)
US ISM Non-Manufacturing PMI (May) 50.3 vs. Exp. 52.2 (Prev. 51.9)
US ISM Non-Manufacturing Price Paid Index (May) 56.2 (Prev. 59.6)
US S&P Global Services Final PMI 54.9 (Prev. 55.1)
US S&P Global Composite Final PMI 54.3 (Prev. 54.5)

FIXED INCOME

US Treasuries bull-steepened after the surprise fall in ISM Services caught NFP shorts off guard.

FX

USD began the week in a choppy fashion with trade contained within tight ranges amid thin newsflow although softened after disappointing ISM Services PMI data for May reversed some of the post-NFP gains in the buck.
EUR was flat and EUR/USD reverted to the 1.0700 handle with the rebound spurred by weak US ISM Services, while remarks from ECB's Lagarde and Nagel highlighted ongoing concern about inflation.
GBP initially weakened beneath the 1.2400 handle against the dollar but then bounced off lows as the greenback retreated in the aftermath of the latest economic releases stateside.
JPY strengthened and USD/JPY slipped beneath 140.00 owing to the softer US data and yields.

CRYPTO

SEC sues Binance and CEO Zhao for allegedly breaking US securities rules in which the charges include operating unregistered exchanges, broker dealers and clearing agencies. SEC said Binance secretly controlled the Binance US platform operations and it charged Binance for unregistered offers and sales of BNB and BUSD, while it alleged that Zhao and Binance misled investors about their risk controls.
Binance said it is to defend itself vigorously against the SEC suit and it remains open to productive compromise, while it is engaged in good-faith discussions with the SEC to reach a negotiated settlement to resolve their investigations.

COMMODITIES

Crude was firmer to start the week after Saudi Arabia announced additional cuts at the OPEC+ meeting, although oil prices settled well off their earlier APAC and US peaks as desks cited ongoing growth concerns.
Saudi Arabia raised all July crude prices to Asia, Europe and the US with July Arab light crude oil OSP to Asia set at +USD 3/bbl vs Oman/Dubai average (prev. +USD 2.55/bbl) and to NW Europe at +USD 3/bbl vs ICE Brent (prev. +USD 2.10/bbl), while it lifted the OSP to the US to +USD 7.15 vs ASCI (prev. +USD 6.25/bbl).
Saudi Arabia is said to be "fed up" with OPEC members not meeting oil output, and seeks more output transparency from Russia, according to Bloomberg.
US Energy Secretary said after the OPEC+ decision to cut production that the US is going to work with all producers and consumers to seek lower prices for Americans.
IEA Chief Birol said the possibility of prices going up is a lot more likely after the OPEC+ decision and there is an imbalance in the oil market in H2 2023 already which will get worse after the OPEC+ decision.
Citi continues to recommend dip buying in gold and silver into year-end, while it now prefers zinc across the industrial metals complex as the relative outperformer for a tactical summer bounce.

GEOPOLITICAL

White House said the US is seeing an increasing level of aggressiveness by China's military and the US is prepared to address growing aggressiveness. White House stated the US wants to see Beijing justify what it is doing with increased military and said both recent Chinese intercepts occurred in international space, while it added that it won't be long before someone gets hurt and that unsafe intercepts can lead to miscalculations.
Ukraine's Foreign Minister said Ukraine will "probably" only be able to join NATO after the end of the war and said Ukraine has enough weapons to begin its counter-offensive, according to a Reuters interview.
Poland is seeking UK air defence systems to prevent Russian missiles and drones from entering its airspace after several recent incursions.
US issued new Russia-related sanctions, according to the Treasury website.
Russia's Kremlin said it welcomes the "positive statement" from the US last week regarding nuclear weapons and expects further diplomatic contact.
Russian Defence Ministry said two Russian strategic bombers carried out a routine flight over the Barents and Norwegian seas.
Russian Foreign Ministry said inspections under the Black Sea grain deal have resumed and Russia sees no prospects for extending the deal but continues consultations with the UN, according to TASS.
Ukraine said Russia resumed the registration of ships under the Black Sea grain deal but is violating rules by not inspecting vessels waiting the longest.

ASIA-PAC

NOTABLE APAC HEADLINES

US diplomats held candid and productive discussions with Chinese counterparts, while US officials made it clear that the US would compete vigorously and stand up for US interests and values.

EU/UK