Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks closed mixed on Friday in what was a whipsaw session on the final quad-witching of the year, with the DJIA making fresh intraday record highs.
Fed's Goolsbee (2023 voter) did not rule out the possibility of cutting interest rates at the March meeting and said the Fed may need to shift focus to jobs from inflation, according to WSJ.
ECB policymakers do not expect to change the message on steady rates before the March meeting, according to Reuters sources, and any cut before June is difficult.
Israeli PM Netanyahu said Israel has received requests to cease fire and remove troops in Gaza talks but will not do so.
Looking ahead, there is a lack of notable data or scheduled speakers.

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18th December 2023

SNAPSHOT

Click here for the Newsquawk Week Ahead.

US TRADE

US stocks closed mixed on Friday in what was a whipsaw session on the final quad-witching of the year, with the DJIA making fresh intraday record highs.
SPX Unch at 4,719, NDX +0.4% at 14,814, DJIA +0.2% at 37,305, RUT -0.8% at 1,985.

NOTABLE HEADLINES

Fed's Bostic (2024 voter ) said he agrees with NY Fed President Williams; "we need to be willing and comfortable to keep rates higher for longer." Bostic said rate cuts are not 'an imminent thing,' but has instructed staff to begin developing possible principles, and thresholds, to guide the process. Bostic sees two quarter-percentage-point interest rate cuts in 2024, with the first 'sometime in the third quarter', assuming expected progress on inflation continues. Bostic sees 2024 GDP growth at just over 1%, unemployment at 4% by the end of next year, and PCE inflation at 2.4%. He said the US economy is 'still a way' from the Fed's 2% inflation target, though progress has been coming 'faster than I expected', according to Reuters. Click here for the full comments.
Fed's Goolsbee (2023 voter) did not rule out the possibility of cutting interest rates at the March meeting and said the Fed may need to shift focus to jobs from inflation, according to WSJ. He said he would support a rate hike if data supported that, but if inflation continues on the current path, cuts could be appropriate. He said with inflation falling to the 2% target, it could be appropriate to be more mindful of the risk that unemployment rises. Goolsbee expects rates to be lower next year than now, but not significantly.
US NEC Director Brainard said financial markets reflect a more positive view about the economy's path, and she sees no evidence for wage-price spirals, and sees rents bringing down core inflation, according to Reuters.
BoC Governor Macklem said the 2% inflation target is now in sight; we're not there yet but conditions increasingly appear to be in place to get them there, according to Reuters. Click here for the full comments.
BoC is to change the time of rate announcements to 09:45 EST (vs 10:00 EST) from January, and there will be a press conference with the Governor and Deputy Governor after every meeting, according to Reuters.
China's Apple iPhone (AAPL) ban has reportedly been accelerated across government and state firms, according to Bloomberg.

COMMODITIES

Baker Hughes Weekly Rig Count (15/Dec): Oil rigs -2 at 501 (cut rigs for the first time in five weeks); Nat gas rigs unch at 119.
Russian Deputy PM Novak said Russia is to increase oil export cuts as part of the OPEC+ deal already in December, with the number to exceed 300k BPD by May-June, according to Ifax. He added Russia's oil exports are to be lower than 247mln tonnes in 2023.
Russia does not yet see grounds for lifting the ban on winter diesel export, according to Ifax.
Russia is not interested in extending the Black Sea grain deal, according to RIA citing the Agriculture Minister.

GEOPOLITICS

MIDDLE EAST

Israeli PM Netanyahu said Israel has received requests to cease fire and remove troops in Gaza talks but will not do so, and added they have serious criticism of Qatar but right now we are trying to complete the recovery of hostages, according to Reuters.
Israeli Defense Minister said his country can 'copy and paste' what it is doing to Hamas onto Hezbollah, according to Spectator Index.
Syrian air defence intercepted Israeli targets in the vicinity of Damascus, according to the state news agency.
Yemeni Houthis were reportedly in Oman-mediated talks over 'operations' in the Red Sea, according to a Houthi spokesman cited by Reuters.
Yemeni Houthis said they carried out a military operation against 'sensitive targets in southern occupied Palestine' with a large batch of drones, according to a statement.
Yemen Houthi official said Yemen is ready with all defensive options to respond to any American, Israeli, or Western hostile moves, according to Al Mayadeen TV, and added that any hostile move against Yemen will have dire consequences and great costs.
USS Carney shot down 14 Houthi armed attack drones on Saturday in the Red Sea, according to Fox's Griffin.
UK Defence Minister said a UK navy ship has shot down a suspected attack drone targeting merchant shipping in the Red Sea, according to Reuters.
Iran executed an "agent of Israel's Mossad" intelligence service, according to Iranian media.

OTHER

US military reportedly plans to resume permanent deployment of fighter jets at an American base in Okinawa but with fewer planes than before, according to Nikkei. The service intends to deploy 36 F-15EX aircraft.
North Korea launched a short-range ballistic missile which appeared to have landed outside of Japan's EEZ, according to the South Korea military and Japan's Defence Ministry.
Russian President Putin said Russia has no interest in fighting with NATO, according to Reuters.
US Secretary of State Blinken said the Hong Kong national security law changes unjustly target overseas democracy advocates, including US citizens based in the United States and Hong Kong, according to Reuters.
US approved the possible sale of command, control, communications, and computer support to Taiwan's de facto embassy in Washington for USD 300mln, according to the Pentagon.

GLOBAL

Kuwait announced 40 days of mourning and closure of official departments after the passing of Sheikh Nawaf al-Ahmad al-Jaber al-Sabah on Saturday, according to Reuters.
Brazil's lower house approved the main text of reform on consumption taxes, according to Reuters.
Panama Canal on Friday said it will increase the number of booking slots available in its Panamax and Neopanamax locks after a severe drought, according to Reuters.
Argentina agreed to a USD 960mln bridge loan with CAF to meet IMF debt obligations, according to Reuters.
Fitch affirmed Brazil at 'BB'; Outlook Stable.
Fitch affirmed Hungary at 'BBB'; outlook Negative.

EU/UK