Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks gained on Friday heading into the long Memorial Day weekend albeit with futures volume at the lowest for the week given the recommended early closure. Large-cap Tech, Consumer Discretionary and Communication names did a lot of heavy lifting and the NDX continued its outperformance as strong earnings from Marvell helped sustain the momentum which stemmed from Nvidia's results.
US President Biden reached a budget agreement in principle with House Speaker McCarthy to raise the debt limit by 19 months until 1st January 2025. President Biden stated that the agreement represents a compromise and he strongly urged for both chambers of Congress to pass the US debt agreement right away, while he is confident a debt ceiling deal will get to his desk and responded “none” when asked if there are sticking points in a deal. Furthermore, the White House will give a briefing to Senate Democrats on the debt ceiling deal at 18:30EST/23:30BST, according to Reuters.
Looking ahead, Highlights include Vietnam CPI, Thailand Customs Trade Data, Holiday Closures in UK and US on Monday.
The service will run until Monday 29th May at 0630BST at which point the service will halt due to the closure of UK and US markets. The service will then resume at 2200BST for the beginning of the APAC session.

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LOOKING AHEAD

Highlights include Vietnam CPI, Thailand Customs Trade Data, Holiday Closures in UK and US on Monday.
The service will run until Monday 29th May at 0630BST at which point the service will halt due to the closure of UK and US markets. The service will then resume at 2200BST for the beginning of the APAC session.

US TRADE

US stocks gained on Friday heading into the long Memorial Day weekend albeit with futures volume at the lowest for the week given the recommended early closure. Large-cap Tech, Consumer Discretionary and Communication names did a lot of heavy lifting and the NDX continued its outperformance as strong earnings from Marvell (MRVL) helped sustain the momentum which stemmed from Nvidia's (NVDA) results.
SPX +1.3% at 4,205, NDX +2.58% at 14,298, DJIA +1.00% at 33,093, RUT +1.05% at 1,773.
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NOTABLE HEADLINES

Fed’s Goolsbee (voter) said even the anticipation of problems with the debt ceiling has consequences in financial markets and said that rates are already showing fear and uncertainty. Goolsbee added the Fed is improving on the inflation goal but has not succeeded and he thinks they can get inflation down without a recession, while Goolsbee also commented that he tries not to prejudge on rate decisions and they will get a lot of data between now and the June FOMC, according to CBS.
US President Biden reached a budget agreement in principle with House Speaker McCarthy to raise the debt limit by 19 months until 1st January 2025. President Biden stated that the agreement represents a compromise and he strongly urged for both chambers of Congress to pass the US debt agreement right away, while he is confident a debt ceiling deal will get to his desk and responded “none” when asked if there are sticking points in a deal. Furthermore, the White House will give a briefing to Senate Democrats on the debt ceiling deal at 18:30EST/23:30BST, according to Reuters.
US House Speaker McCarthy said the agreement has historic reductions in spending and there are no new taxes or programs in the deal, while he expects Congress to vote on the deal on Wednesday and said more than 95% of House Republicans are very excited about the debt ceiling deal, according to Reuters.
US GOP Rep. Good said he is hearing that the deal is for a USD 4tln increase in the debt limit and US GOP Rep. Roy separately commented that they are going to try to stop the debt ceiling deal in the House, while Democrat Rep. Himes said small scope of debt ceiling bill will win support from Democrats.

GLOBAL NEWS

Turkish High Election Board chief said President Erdogan won the election runoff with 52.14% of votes vs Kilicdaroglu at 47.86% of votes with almost all ballots counted. Furthermore, Turkish President Erdogan thanked the people for voting and said they were given the responsibility to rule for the next 5 years, while Kilicdaroglu said he will continue with his struggle and that it was the most unfair election in years, according to Reuters.

COMMODITIES

Iranian President Raisi told OPEC Secretary General that he hopes oil producers can calm down the market and called for unity among its members, according to Reuters.

GEOPOLITICAL

Russia launched a massive drone attack on Kyiv which was the largest kamikaze drone attack since the start of the invasion, while Ukraine’s air defence systems shot down 58 drones, according to FT.
Russia’s Defence Ministry said on Saturday that Russian forces shot down 12 drones over a 24-hour period and intercepted 19 HIMARS-launched missiles, while Russian air defence forces also intercepted 2 British-supplied Storm Shadow cruise missiles, according to RIA.
Two drones attacked Russia’s Druzhba oil pipeline on Saturday, according to local press reports cited by Kommersant, while an oil pipeline’s administrative building was damaged by an explosion in Russia’s Pskov region near Belarus, according to the local Governor.
China’s Special Envoy for Eurasian Affairs Li Hui said China has always adhered to an objective and fair position, as well as actively persuaded peace and promoted talks regarding the Ukraine crisis. Li added that China will strengthen exchanges and dialogue with all parties including Russia and will make concrete efforts for a political solution, according to the Chinese Foreign Ministry cited by Reuters.

ASIA-PAC

NOTABLE APAC HEADLINES

US Deputy Trade Representative Bianchi said the US review of Section 301 tariffs on Chinese goods is being conducted from an analytical perspective and the outcome will not be linked to any breakthrough in US-China trade relations, while she added that the USTR is consulting with other US agencies on which tariffs make strategic sense and that it is important for US and Chinese officials to continue talking on trade after the recent meetings between officials.
New Zealand Trade & Export Growth Minister announced the supply chains agreement between 14 Indo-Pacific partners including the US, while US Commerce Secretary Raimondo also confirmed that 14 IPEF countries substantially completed negotiations on the supply chains pillar.

DATA RECAP

Chinese Industrial Profits YY (Apr) -18.2% (Prev. -19.2%)
Chinese Industrial Profits YTD YY (Apr) -20.6% (Prev. -21.4%)

EU/UK