US stocks were rangebound amid thin newsflow and summer trading conditions, while focus centred on geopolitics - Newsquawk Asia-Pac Market Open

• US stocks were rangebound to start the week, although the Russell 2000 (+0.4%) outperformed in thin newsflow and typical summer trading conditions as focus resided around geopolitical updates amid a meeting between US President Trump, Ukrainian President Zelensky and various European leaders, while both Trump and Zelensky had earlier touted a possible trilateral meeting with Russia. In terms of the sectors, price action was mixed with Industrials and Consumer Discretionary sitting atop of the pile, while Real Estate and Energy were the laggards.
• USD began the week on the front foot and the DXY returned to above the 98.00 level amid light newsflow and with no tier-1 data or Fed speak with participants awaiting Fed Chair Powell at Jackson Hole later in the week, while headline-driven trade was thin and focus resided around geopolitics.
• Looking ahead, highlights include New Zealand PPI, Australian Westpac Consumer Sentiment, Malaysian Trade Data, Supply from Japan.

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LOOKING AHEAD

• Highlights include New Zealand PPI, Australian Westpac Consumer Sentiment, Malaysian Trade Data, Supply from Japan.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks were rangebound to start the week, although the Russell 2000 (+0.4%) outperformed in thin newsflow and typical summer trading conditions as focus resided around geopolitical updates amid a meeting between US President Trump, Ukrainian President Zelensky and various European leaders, while both Trump and Zelensky had earlier touted a possible trilateral meeting with Russia. In terms of the sectors, price action was mixed with Industrials and Consumer Discretionary sitting atop of the pile, while Real Estate and Energy were the laggards.
• SPX -0.02% at 6,449, NDX +0.01% at 23,713, DJI -0.08% at 44,910, RUT +0.40% at 2,296.
• Click here for a detailed summary.

TARIFFS/TRADE

• German government spokesman said US tariffs on the EU car industry need to be cut as agreed before a wider tariff agreement can be clarified in writing.

NOTABLE HEADLINES

• US President Trump's administration is reportedly considering taking a 10% stake in Intel (INTC) and is considering converting the Co's Chips Act grants into equity, according to Bloomberg citing sources, while a source added that the exact size of the stake and whether the White House moves ahead or not is still in flux.

FX

• USD began the week on the front foot and the DXY returned to above the 98.00 level amid light newsflow and with no tier-1 data or Fed speak with participants awaiting Fed Chair Powell at Jackson Hole later in the week, while headline-driven trade was thin and focus resided around geopolitics.
• EUR gave up ground against the firmer buck and failed to sustain the 1.1700 status as markets await updates from the Trump/Zelensky/European leaders meeting following the progress made at the Trump/Putin summit on Friday.
• GBP was pressured with GBP/USD testing support at the 1.3500 level, while newsflow from the UK was quiet although there were reports that UK Chancellor Reeves is considering replacing stamp duty with a new property tax.
• JPY weakened amid the firmer dollar which saw USD/JPY advance to just shy of the 148.00 handle, where it met some resistance.

FIXED INCOME

• T-notes marginally weakened amid a thin calendar at the start of the week and as Jackson Hole awaits.

COMMODITIES

• Oil prices gained at the start of the week and firmed through the US afternoon after breaking out of the initial tight range during EU trade.
• Slovak pipeline operator Transpetrol said oil flows from Slovakia through the Druzhba pipeline have been suspended, and they do not know the reason for the suspension, which came from outside Slovakia.

GEOPOLITICAL

MIDDLE EAST

• Hamas received a new offer from the mediators for a ceasefire agreement in Gaza and is expected to respond to it today, according to an Israeli journalist citing Qatar's Al-Arabi TV.
• Sources close to Hamas told the Saudi channel Asharq that the organisation may agree to the new Egyptian-Qatari proposal for a ceasefire in Gaza. It was later reported that Hamas agreed to the new proposal for a Gaza ceasefire, according to journalist Elster citing Al Jazeera.
• Latest Gaza ceasefire proposal includes the temporary suspension of military operations for a 60-day period and includes a path to reach a comprehensive deal to end the war, according to Reuters citing Egyptian sources.
• US President Trump posted on the Middle East that "We will only see the return of the remaining hostages when Hamas is confronted and destroyed!!! The sooner this takes place, the better the chances of success will be".
• Iran's Foreign Ministry said contacts with the E3 are ongoing and they do not rule out a new round of talks, but there is no decision in this regard as of this moment, according to journalist Aslani.
• Iran's Foreign Ministry spokesperson said Tehran will continue talks with the IAEA.

RUSSIA-UKRAINE

• US President Trump said they had a very successful day so far and will try to work out a trilateral meeting with the US, Ukraine, and Russia. Trump said Russia agreed to security guarantees and they will be considering who will do what, while he suggested optimism on collectively reaching an agreement to deter aggression on Ukraine and said they need to discuss possible exchanges of territory.
• US President Trump said they will be meeting for a while and in a week or two, they will know if they can solve it, but added it is possible it might not be able to get done.
• US President Trump said if everything works out well, they'll have a trilateral meeting and would not say it is the end of the road. Trump said he will work with Ukraine and all to make sure peace stays, while he added there will be a lot of help on security. Furthermore, it was reported that President Trump does not think there will be a ceasefire, but can work a deal where they aim for peace while they fight and they are going to be talking about security guarantees.
• Ukrainian President Zelensky said they spoke about sensitive matters including security guarantees, and all of them want to finish this war and stop Russia, while he added it is important that the US gives a strong signal on security.
• Ukrainian President Zelensky told Fox News that giving up territory to Russia would be "impossible", while Zelensky said they should not expect Russian President Putin to drop his plan for further aggression and Ukraine is prepared to establish a "new security architecture". It was separately reported that Zelensky said after meeting with US Envoy Kellogg that Ukraine is ready to work productively for peace and Russia can only be forced into peace through strength.
• EU's von der Leyen said security guarantees are so important, while German Chancellor Merz said it is helpful to meet, but the next steps are more complicated and they would all like to see a ceasefire. Furthermore, French President Macron said they all support the idea of a truce and UK PM Starmer said they can make real progress on security guarantees.
• A source said that today's meetings in Washington is more a blame game than peace talks and "nobody believes a peace agreement under these conditions is feasible - except President Trump", according to WSJ's Norman.
• Ukrainian President Zelensky said Russia carried out strikes on Ukraine intentionally ahead of Washington talks, while Ukraine's Energy Minister said Russia attacked energy infrastructure within Odesa overnight and that the infrastructure belongs to Azerbaijan's Socar. It was also reported that Ukraine's military hit an oil pumping station in Tambov, Russia which suspended supplies via the Druzhba pipeline.
• Russian Foreign Ministry said they oppose any scenario that includes the deployment of NATO troops into Ukraine.

ASIA-PAC

NOTABLE HEADLINES

• Chinese Premier Li said China should consolidate and expand the positive trend in the economy, as well as stabilise market expectations and should continue to stimulate consumption potential. Li said China will further stabilise employment and guarantee people's livelihood, while it will adopt forceful measures to consolidate the stabilising trend in the housing market and will accelerate growth drivers, like services consumption.
• Japan wants to help companies in fields critical to economic security, including semiconductors, rare earths and shipbuilding, to invest in SE Asian and other EMs in an effort to build supply chains that are structured to Tokyo's advantage, according to Nikkei. Furthermore, the government will seek to propose changes next year to an economic security law to make such ventures eligible for support.

EU/UK

NOTABLE HEADLINES

• UK Chancellor Reeves reportedly considers replacing stamp duty with a new property tax, according to The Guardian.
• German government spokesman said talks are ongoing on the 2027 federal budget and one of the goals is to lower taxes on low and medium incomes.