• APAC stocks were mostly higher after the gains in the US but with upside capped by lingering growth concerns.
• European equity futures are indicative of a slightly lower open with Eurostoxx 50 -0.2% after the cash market closed with gains of 0.3% yesterday.
• DXY has recouped some lost ground, antipodeans lag G10 FX, EUR/USD is back on a 1.01 handle. 
• Nord Stream 1 turbine was said to be stuck in transit in Germany due to Russia not giving approval to transport it back.
• Looking ahead, highlights include UK & US Flash PMIs, UK Retail Sales, ECB SPF & CBR Policy Announcement, Earnings from American Express, Verizon, Danske Bank & Swedish Match.

US TRADE

• US stocks were firmer with a tech bias as US Treasuries rallied in the aftermath of weak US data releases, although futures saw a bout of turbulence after-hours following SNAP's earnings report which missed on top and bottom lines while it also announced a hiring freeze which pressured other tech peers.
• SPX +0.97% at 3,998, NDX +1.44% at 12,619, DJIA +0.51% at 32,036, RUT +0.40 % at 1,834.
• Click here for a detailed summary.

NOTABLE US HEADLINES

• US First Lady said President Biden is feeling fine and just experiencing a few mild symptoms, while it was also reported that VP Harris was identified as a close contact of President Biden following Biden's positive COVID test, according to a White House official cited by Reuters.
• US Senate Majority Leader Schumer tweeted they are moving forward on the Senate CHIPS bill which will target the national semiconductor chip shortage, lower costs for American consumers and boost scientific innovation and jobs.

GEOPOLITICS

RUSSIA-UKRAINE

• EU blocked a proposal to sanction Russian metals giant VSMPO-Avisma PJSC after France and other member states objected to the move over fears of a potential retaliatory ban by Russia on titanium exports, according to WSJ citing diplomats.
• Russian Foreign Ministry said the latest round of EU sanctions will have disastrous consequences for parts of the world economy, while it hopes the EU move to expand sanction relief will create conditions for unhindered export of grains and fertilisers, according to Reuters.
• Turkish President Erdogan's office said the signing ceremony for a grain export deal will be on Friday with Russia, Ukraine and UN's Guterres.

OTHER

• South Korean President Yoon said North Korea is ready to conduct a nuclear test at any time, according to Yonhap. It was separately reported that South Korea and the US will resume live field training during their military drills which begin next month, according to Reuters citing the Defence Ministry.
• Explosions were reported in Damascus with Syrian air defences intercepting Israeli missiles over the city, according to state media.

APAC TRADE

EQUITIES

• APAC stocks were mostly higher after the gains in the US but with upside capped by lingering growth concerns.
• ASX 200 was rangebound near the 6,800 level after PMI data slowed but remained in expansion territory.
• Nikkei 225 was kept afloat after the recent dovish affirmations from the BoJ and Governor Kuroda but with gains limited amid the COVID situation and with Core Inflation rising by its fastest pace in 7 years.
• Hang Seng and Shanghai Comp. were mixed amid earnings releases and with suggestions that President Biden could temporarily reduce China tariffs in response to supply chain disruptions and rising inflation.
• US equity futures saw a bout of pressure after-hours following disappointing earnings from SNAP which weighed on relevant big tech names. ES -0.5%.
• European equity futures are indicative of a slightly lower open with Eurostoxx 50 -0.2% after the cash market closed with gains of 0.3% yesterday.

FX

• DXY hovers around the 107 mark after recouping some of yesterday's losses that were triggered by weak data, lower yields and ECB's 50bp hike.
• EUR/USD remained choppy in the aftermath of the ECB’s 50bps move with the initial gains faded as details of the TPI were unveiled, while political uncertainty lingered with Italy's parliament dissolved and a general election set for September 25th.
• GBP/USD trickled lower after hitting resistance again at 1.2000 and with the latest YouGov poll showing Truss widening her lead against Sunak.
• USD/JPY initially extended on its declines owing to the recent narrowing of yield differentials but then bounced off a floor at 137.00
• Antipodeans gave back some of their recent gains as the greenback nursed yesterday’s losses.

FIXED INCOME

• 10yr USTs remained afloat following the prior day’s bull steepening which was triggered by the bout of weak data releases and lower energy prices.
• Bunds marginally extended on gains despite the ECB’s larger-than-expected rate hike and Transmission Protection Instrument announcement with prices supported amid headwinds from growth concerns and political uncertainty.
• 10yr JGBs followed suit to the recent advances in global peers but with upside capped by softer demand at the enhanced liquidity auction.

COMMODITIES

• Crude futures are higher but with upside capped amid ongoing uncertainty regarding Russian energy supply with the Nord Stream 1 flows at 40% of capacity which is not seen to be enough as Europe seeks to fill gas storage before winter, while the missing turbine is said to be stuck in transit as Russia has not yet approved its return.
• Russian President Putin and Saudi Crown Prince spoke by phone and discussed the global oil market situation, while they underlined the importance of further cooperation within OPEC+ framework, according to the Kremlin.
• Nord Stream 1 turbine was said to be stuck in transit in Germany due to Russia not giving approval to transport it back, while it is currently unclear when the turbine can be returned and could take days or even weeks, according to Reuters sources.
• Spot gold eased off the prior day's highs as the greenback clawed back some of its recent losses.
• Copper traded higher amid the mostly positive risk tone but with gains capped by lingering growth and COVID concerns.

CRYPTO

• Bitcoin prices were lower overnight and retreated back beneath the 23,000 level.

NOTABLE APAC HEADLINES

• US Democrat Rep. Ami Bera said President Biden could opt for a "temporary reduction" of Trump-era tariffs on China in response to supply chain disruptions and rising inflation, according to Nikkei.

DATA RECAP

• Japanese National CPI YY (Jul) 2.4% vs. Exp. 2.4% (Prev. 2.5%)
• Japanese National CPI Ex. Fresh Food YY (Jul) 2.2% vs. Exp. 2.2% (Prev. 2.1%)
• Japanese National CPI Ex. Fresh Food & Energy YY (Jul) 1.0% vs. Exp. 0.9% (Prev. 0.8%)
• Japanese Manufacturing PMI (Jun P) 52.2 (Prev. 52.7)
• Japanese Services PMI (Jun P) 51.2 (Prev. 54.0)
• Australian Manufacturing PMI (Jul P) 55.7 (Prev. 56.2)
• Australian Services PMI (Jul P) 50.4 (Prev. 52.6)

EU/UK

NOTABLE HEADLINES

• UK Tory leadership YouGov poll showed Liz Truss widened her lead to 62% vs Rishi Sunak at 38%.
• Some ECB officials initially preferred a quarter-point rate hike but the agreement on the transmission tool convinced officials that they could afford a half-point move, according to Bloomberg.
• ECB's internal metrics do not currently show unwarranted fragmentation in any EZ country, while the ECB does not expect TPI to be triggered imminently and did not discuss any particular country on Thursday, according to Reuters sources.
• Italian President Mattarella dissolved parliament which clears the way for new elections in Italy with general elections to take place on September 25th, according to Reuters and local press.

DATA RECAP

• UK GfK Consumer Confidence (Jul) -41 vs. Exp. -42.0 (Prev. -41.0)