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Weekend News Roundup - Newsquawk Asia-Pac Market Open

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Sunday, Jun 01, 2025 - 09:54 PM
  • US stocks were choppy on Friday as they headed into month-end with a focus on US President Trump's commentary and US data. The major indices ultimately finished the day little changed, although the Russell underperformed, while bonds settled rather flat but with a steeper curve. In the morning, Trump took aim at China in which he noted how they are violating their agreement with the US after Trump dialled back the tariffs on China goods. Meanwhile, the US data also hit bonds and stocks as the April PCE printed broadly in line with expectations but eased from the prior and Personal Income surged but Consumer Spending saw minimal growth, suggesting there is some sense of caution in the consumer.
  • US President Trump said he will double US steel and aluminium tariffs from 25% to 50%, effective June 4th, to protect US industry.
  • OPEC+ members that voluntarily restricted output agreed to a 411k bpd oil production increase in July, which could be paused or reversed subject to market conditions.
  • Chinese PMI data for May was mixed with headline Manufacturing PMI matched estimates at 49.5 vs. Exp. 49.5 (Prev. 49.0) but Non-Manufacturing PMI missed forecasts at 50.3 vs Exp. 50.6 (Prev. 50.4).
  • Looking ahead, highlights include Japanese Capital Spending, Regional PMIs, Comments from Fed's Waller, Holiday Closures in Mainland China and New Zealand.

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LOOKING AHEAD

  • Highlights include Japanese Capital Spending, Regional PMIs, Comments from Fed's Waller, Holiday Closures in Mainland China and New Zealand.
  • Click for the Newsquawk Week Ahead.

US TRADE

  • US stocks were choppy on Friday as they headed into month-end with a focus on US President Trump's commentary and US data. The major indices ultimately finished the day little changed, although the Russell underperformed, while bonds settled rather flat but with a steeper curve. In the morning, Trump took aim at China in which he noted how they are violating their agreement with the US after Trump dialled back the tariffs on China goods. Meanwhile, the US data also hit bonds and stocks as the April PCE printed broadly in line with expectations but eased from the prior and Personal Income surged but Consumer Spending saw minimal growth, suggesting there is some sense of caution in the consumer.
  • SPX -0.14% at 5,903, NDX -0.11% at 21,340, DJI +0.13% at 42,270, RUT -0.46% at 2,065.
  • Click here for a detailed summary.

TARIFFS/TRADE

  • US President Trump said he will double US steel and aluminium tariffs from 25% to 50%, effective June 4th, to protect US industry.
  • US President Trump is finalising an executive order for new restrictions that could effectively end Chinese drone sales to the US, according to the Washington Post.
  • US Treasury Secretary Bessent said China is holding back products essential to the industrial supply chain and he believes US President Trump will talk to Chinese President Xi very soon, according to a CBS interview.

NOTABLE HEADLINES

  • Fed’s Daly (2027 voter) said April PCE is a good relief but is incomplete as a picture and wants to ensure inflation stays sustainably at 2%. Daly said she sees incoming information as very positive and noted that monetary policy is in a good place, while she is comfortable with the projection for two rate cuts this year.
  • White House sent a ‘partial’ FY26 budget proposal to Congress, leaving out standard projections.

COMMODITIES

  • OPEC+ members that voluntarily restricted output agreed to a 411k bpd oil production increase in July, which could be paused or reversed subject to market conditions.

GEOPOLITICAL

MIDDLE EAST

  • It was reported that an Israeli strike on an aid distribution point operated by a US-based Gaza aid group killed at least 26 in Rafah. However, the Israeli military said initial findings indicated that the army did not fire at Palestinian civilians near or within the humanitarian aid distribution site, while it added that drone footage showed armed and masked individuals opened fire at Gazan civilians attempting to collect looted humanitarian aid in southern Khan Younis.
  • Israeli PM Netanyahu said Hamas is continuing its refusal of US envoy Witkoff’s proposal for a Gaza ceasefire, and Israel will continue its action in Gaza for the return of hostages and defeat of Hamas.
  • US envoy Witkoff said Hamas’s response to the US proposal is totally unacceptable and only takes us backwards.
  • Hamas said it submitted a response regarding US envoy Witkoff’s proposal to mediators and it expressed to immediately start a round of indirect negotiations on points of contention in a Gaza ceasefire deal, while a spokesperson said they have considered US envoy Witkoff’s proposal acceptable for negotiations and that Israel’s response was ‘incompatible’. Furthermore, they have not rejected Witkoff’s ceasefire proposal but stated that Witkoff’s position towards Hamas was unfair and shows complete bias toward Israel.
  • White House Press Secretary Leavitt said envoy Witkoff sent a “detailed and acceptable” nuclear deal proposal to Iran and it is in their interests to accept it.
  • Iran’s Foreign Minister said his Omani counterpart visited Tehran on Saturday to present the elements of the US proposal for a nuclear deal. In relevant news, Iran said the UN nuclear watchdog is politically motivated and repeats baseless accusations.

RUSSIA-UKRAINE

  • A bridge collapsed in Russia’s Kursk as a freight train passed, according to the regional governor, while a senior Russian senator said the blowing up of the bridge and derailment of the train in Bryansk indicate that Ukraine has turned into a terrorist enclave.
  • Russian Defence Ministry said Ukraine carried out a terrorist attack using drones against airfields in Murmansk, Ikutsk, Ivanovo, Ryazan and Amur regions, while it stated that all attacks on airfields have been repelled although several aircraft caught fire, according to RIA and Interfax. Furthermore, Ukrainian President Zelensky said the attack on Russian bases was a brilliant operation and their longest-range operation, while he stated that 117 drones were used in the operation and there were very tangible Russian losses.
  • Russian Foreign Minister Lavrov discussed the Ukraine settlement and talks with US Secretary of State Rubio, while Rubio expressed condolences to Lavrov over the death in the Russian rail bridge incident.
  • Russian Defence Ministry said Russian forces captured Oleksiivka in Ukraine’s Sumy region, while it was separately reported that Ukraine experienced one of the longest barrages from Russian missiles and drones early on Sunday, in which air sirens sounded for more than 9 hours, according to Bloomberg.
  • Ukrainian negotiators at peace talks in Istanbul are to propose a roadmap for peace which includes a 30-day ceasefire, release of all POWs, negotiations involving the US and Europe, as well as a meeting between Putin and Zelensky. Furthermore, Ukraine wants reparations, no curbs on its military, no international recognition for territory taken by Russia and with the current front lines to be the starting point for talks, while the framework for Ukrainian terms for peace are largely unchanged from Kyiv’s previous position.
  • Meeting between Russian and Ukrainian delegates in Istanbul is expected to take place at 11:00BST/06:00EDT in Ciragan Palace on Monday, according to a Turkish Foreign Ministry source.

OTHER

  • US Secretary of Defense Hegseth said the US does not seek conflict with China, but Beijing wants to control and dominate the Indo-Pacific, while he added that Beijing is credibly preparing to use force to alter the balance of power in the region and that the threat from China is real and could be imminent.
  • China’s Defence Ministry spokesperson said the US is accustomed to using the Shangri-La Dialogue to create disputes, sow discord and seek selfish interests, which China strongly deplores and resolutely opposes. Furthermore, the spokesperson said the US has no right to make irresponsible remarks about the Taiwan issue, let alone use it as a bargaining chip to contain China, while it stated regarding the South China Sea issue that the US is the biggest threat to regional peace and stability.

ASIA-PAC

NOTABLE HEADLINES

  • BoJ set aside maximum provisions for losses on bond transactions for fiscal 2024 which was increased to 100% for the first time with the provisions raised by JPY 427.7bln.

DATA RECAP

  • Chinese NBS Manufacturing PMI (May) 49.5 vs. Exp. 49.5 (Prev. 49.0)
  • Chinese Non-Manufacturing PMI (May) 50.3 vs Exp. 50.6 (Prev. 50.4)
  • Chinese Composite PMI (May) 50.4 v (Prev. 50.2)
  • Korea (Republic of) Trade Balance Prelim (May) 6.94B vs. Exp. 4.61B (Prev. 4.88B)
  • Korea (Republic of) Export Growth Prelim (May) -1.3% vs. Exp. -2.7% (Prev. 3.7%)
  • Korea (Republic of) Import Growth Prelim (May) -5.3% vs. Exp. -3.1% (Prev. -2.7%)

EU/UK

NOTABLE HEADLINES

  • UK is to build a billion-pound weapons works as UK PM Starmer calls for war readiness.
  • US President Trump is to meet with German Chancellor Merz on Friday.
  • Pro-EU candidate Trzaskowski was reportedly inching towards winning Poland’s presidential run-off vote on Sunday after exit polls showed he was in the lead by a razor-thin margin and he claimed that they won, although it was later reported that a late poll showed Polish nationalist candidate Nawrocki was seen narrowly ahead.
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