US stocks were mostly lower and bonds were mixed as markets await key events - Newsquawk Asia-Pac Market Open

US stocks finished mostly lower in what was an ultimately uneventful session amid summer trading conditions and as participants await flash PMI data due Wednesday, as well as Fed Chair Powell's speech from Jackson Hole on Friday. Furthermore, consumer earnings were varied and didn't provide any index-level steer, while bonds were also mixed and resulted in deeper yield inversion.
USD was firmer amid slight risk-averse conditions as market participants await the next major risk events including August Flash PMIs on Wednesday ahead of Jackson Hole and Fed Chair Powell's comments on Friday.
Looking ahead, highlights include New Zealand Retail Sales, Australian & Japanese PMIs, Singapore CPI, Supply from Australia.

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Highlights include New Zealand Retail Sales, Australian & Japanese PMIs, Singapore CPI, Supply from Australia.

US TRADE

US stocks finished mostly lower in what was an ultimately uneventful session amid summer trading conditions and as participants await flash PMI data due Wednesday, as well as Fed Chair Powell's speech from Jackson Hole on Friday. Furthermore, consumer earnings were varied and didn't provide any index-level steer, while bonds were also mixed and resulted in deeper yield inversion.
SPX -0.28% at 4,387, NDX -0.19% at 14,908, DJIA -0.51% at 34,289, RUT -0.28% at 1,850.
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NOTABLE HEADLINES

Fed's Barkin (non-voter) said consumer spending and economic strength make it possible the US economy could reaccelerate before inflation cools and he won't prejudge the outcome of the Fed's September meeting. Barkin added that if inflation remains high and demand gives no signal it is likely to drop, it would require tighter monetary policy.
Fed Discount Rate Minutes stated that two regional Fed boards, Atlanta and New York, sought to hold the discount rate in July.

DATA RECAP

US Existing Home Sales (Jul) 4.07M vs. Exp. 4.15M (Prev. 4.16M)
US Richmond Fed Composite Index (Aug) -7.0 (Prev. -9.0)
US Richmond Fed Services Index (Aug) 4.0 (Prev. -2.0)
US Richmond Fed Manufacturing Shipments (Aug) -5.0 (Prev. -6.0)
US Philadelphia Fed Non-Manufacturing (Aug) Regional Business Activity Index -13.1 (prev. 1.4)

US Treasuries were mixed as traders continued to fret over higher-for-longer US monetary policy ahead of the Fed's Jackson Hole Symposium.

USD was firmer amid slight risk-averse conditions as market participants await the next major risk events including August Flash PMIs on Wednesday ahead of Jackson Hole and Fed Chair Powell's comments on Friday.
EUR suffered against the firmer greenback and dipped back beneath the 1.0900 handle.
GBP initially climbed and GBP/USD touched the 1.2800 level where it hit resistance and reversed all its gains.
JPY was firmer on the day with USD/JPY back beneath the 146.00 level amid the lacklustre risk appetite.
Russian President Putin said de-dollarisation is an irreversible process.

Crude traded marginally lower albeit within very narrow ranges, on account of the broad dollar strength and continued concerns over China’s economic rebound in thin holiday trade and newsflow.
US Energy Inventory Data (bbls): Crude -2.4mln (exp. -2.9mln), Gasoline 1.9mln (exp. -0.9mln), Distillate -0.2mln (exp. +0.2mln), Cushing -2.2mln.
Iraqi Oil Minister met with his Turkish counterpart in Ankara to discuss joint relations in the oil and energy sector, while they did not reach an agreement with Turkey on Tuesday to allow an immediate resumption of northern oil exports although agreed to hold further talks in the future to discuss oil export resumption, according to Reuters citing sources.

Russian Defence Ministry said they destroyed a US-made military vessel near Snake Island in the Black Sea.
Iran unveiled an advanced Mohajer drone with enhanced flight range and duration and a greater payload, according to state media.

NOTABLE HEADLINES

Chinese President Xi said the Chinese economy has strong resilience.
China's Vice Minister of Commerce Wang Shouwen met with a US business delegation led by US-China Business Council chair Casper and exchanged views on topics including bilateral economic and trade relations. Furthermore, Wang said that China is willing to continue promoting the healthy and sustainable development of bilateral economic relations, while firmly promoting high-quality opening-up, according to Global Times.
US Commerce Secretary Raimondo is to visit China on August 27th-30th to meet senior government officials, while White House's Sullivan said Commerce Secretary Raimondo will reinforce that the US is focused on sustaining an economic relationship with China. Furthermore, Sullivan called on China to be more transparent about the state of the economy and said that Beijing's crackdown on information is not responsible, according to FT.
China's Commerce Ministry said the recent removal by the US of 27 Chinese entities from the unverified list is in line with the common interests of both sides.
China extended the waiver for capital gains tax for the Hong Kong stock connect, according to Bloomberg.
China's Foreign Minister summoned Japan's ambassador to China regarding plans for releasing Fukushima water.
Japanese PM Kishida is considering an extension of the gasoline subsidy programme beyond the end of September, according to TV Asahi.

NOTABLE HEADLINES

Spain's King Felipe nominated People's Party Leader Fejido to seek investiture as PM in a parliamentary vote.