• Nvidia rose 6.6% after-hours post-earnings after reporting solid Q2 profits and announcing an additional USD 25bln in buybacks
• APAC stocks traded higher as the region took impetus from the gains on Wall St. and the Nvidia-induced rise in futures; ES +0.8%, NQ +1.3%
• European equity futures are indicative of a higher open with the Eurostoxx 50 future +0.7% after the cash market closed up by 0.2% yesterday
• DXY is contained on a 103 handle, whilst EUR/USD and Cable hold on to 1.08 and 1.27 status respectively, USD/JPY is back above 145
• Union members at Woodside’s LNG facilities will meet today to discuss an in-principle agreement reached with the Co.
• Looking ahead, highlights include US Durable Goods & Initial Jobless Claims, Fed's Jackson Hole Symposium, Banxico Minutes, CBRT Policy Announcement, Speeches from Fed's Harker & Collins

US TRADE

EQUITIES

• US stocks were higher with gains led by the Nasdaq amid a surge in Communication and Tech names in the build-up to Nvidia's earnings after-hours and with the upside in the major indices supported by a fall in UST yields following a slew of weak PMI data releases from both sides of the pond, while futures extended on gains after the beat on NVDA's results.
• SPX +1.10% at 4,436, NDX +1.60% at 15,148, DJIA +0.54% at 34,472, RUT +1.04% at 1,870.
• Click here for a detailed summary.

NOTABLE HEADLINES

• US President Biden will reportedly name Medicare negotiation drugs next week, according to Politico.
• Nvidia (NVDA) Q2 2023 (USD): Adj. EPS 2.70 (exp. 2.09), Revenue 13.51bln (exp. 11.22bln), Co. approved a further 25bln in share buybacks, without expiration. Rose 6.6% in after-hours trade

APAC TRADE

EQUITIES

• APAC stocks traded higher as the region took impetus from the gains on Wall St. where the Nasdaq led the advances across the major indices as yields declined in the aftermath of weak PMI data and with futures also boosted by strong Nvidia earnings.
• ASX 200 was positive amid the continued influx of earnings and as strength in tech and financials atoned for the underperformance in the defensive sectors.
• Nikkei 225 extended above the 32,000 level with semiconductor names in Asia riding the Nvidia wave.
• KOSPI was boosted with the index unfazed by North Korea’s latest failed ‘satellite’ launch, while the BoK provided no surprises and maintained its base rate at 3.50%, as unanimously expected.
• Hang Seng and Shanghai Comp conformed to the upbeat mood in which the Hong Kong benchmark climbed back above 18,000 amid tech strength, although gains in the mainland were limited after the PBoC’s liquidity drain and as participants await more big bank earnings.
• US equity futures (ES +0.8%, NQ +1.3%) were underpinned in the aftermath of Nvidia's earnings and strong guidance.
• European equity futures are indicative of a higher open with the Eurostoxx 50 future +0.7% after the cash market closed up by 0.2% yesterday.

FX

• DXY was kept afloat but with price action rangebound after the prior day’s choppy mood and eventual softening alongside a decline in yields in the aftermath of the softer PMI data releases from the US.
• EUR/USD traded sideways after yesterday’s intraday recovery from support near the 1.0800 level.
• GBP/USD lacked firm direction following its recent brief dip beneath the 1.2700 handle.
• USD/JPY reclaimed the 145.00 status after sliding alongside narrower yield differentials.
• Antipodeans held on to most of their recent spoils amid a quiet calendar and improved risk tone.
• PBoC set USD/CNY mid-point at 7.1886 vs exp. 7.2791 (prev. 7.1988)

FIXED INCOME

• 10yr UST futures mildly pulled back from the prior day’s highs after surging to near the 110.00 level as yields retreated in the aftermath of weak PMI data.
• Bund futures extended on their gains owing to the contractions across the bloc’s PMI releases.
• 10yr JGB futures tracked the recent advances in global counterparts with slightly stronger demand seen in the enhanced liquidity auction for long- to super-long JGBs.

COMMODITIES

• Crude futures were lacklustre amid talks on potential sanctions relief for Venezuela and with an in-principle agreement reached between Woodside Energy and union negotiators which members will discuss today.
• Woodside Energy (WDS) said it continues to engage actively and constructively in the bargaining process with unions over Australian LNG facilities and substantial progress was made in talks and parties reached an in-principle agreement on a number of issues, while it added that it has not received any notices of protected industrial action. Furthermore, the Australian union said members at Woodside’s LNG facilities will meet today to discuss an in-principle agreement reached with the Co. by their negotiating team and that Woodside made their members a strong offer without industrial action being taken.
• Venezuela and the US are reportedly in talks over possible sanctions relief, while the White House later said the US is prepared to provide sanctions relief should Venezuela take actions toward restoring democracy leading to free elections but noted that sanctions remain in effect as it has not taken the necessary steps.
• Spot gold marginally extended on yesterday's gains after having reclaimed the USD 1900/oz level.
• Copper futures lacked firm direction amid the improved risk tone and recent weak PMI data.

CRYPTO

• Bitcoin was rangebound and briefly climbed back above USD 26,500 amid the risk revival.

NOTABLE ASIA-PAC HEADLINES

• US is seeking a six-month extension to the US-China Science and Technology Agreement.
• TEPCO (9501 JT) began the water release from the Fukushima plant and said no abnormalities were identified with the seawater pump or surrounding facilities. China's Foreign Ministry said China firmly opposes and strongly condemns Japan's release of Fukushima water into the sea, while it added that it is a major nuclear safety issue with cross-border implications and that Japan has not proved the legitimacy of the decision.
• BoK kept its base rate unchanged at 3.50% as expected, with the decision unanimous and said it will maintain a restrictive policy stance for a considerable time. BoK noted that the domestic economic growth is expected to improve gradually and it maintained 2023 GDP growth and inflation forecasts at 1.4% and 3.5%, respectively, but cut its 2024 GDP growth forecast to 2.2% from 2.3%. BoK Governor Rhee said 6 out of 7 members wanted to keep the door open for one more hike and that it is too early to talk about a rate cut but does not want to rule out the possibility of a cut within this year. Furthermore, Rhee said uncertainty is very high regarding US monetary policy and that it is undesirable to comment on whether South Korea can cut interest rates before the US, while he also noted Interest rates are at the upper end of the neutral range or higher.

GEOPOLITICS

• Russia said 10 people were killed after a private jet crashed in the Tver region north of Moscow and said Wagner Group chief Prigozhin was on board the plane that crashed.
• Russian military said it downed three Ukrainian drones over Russian regions, according to Reuters.
• North Korea conducted a launch that prompted Japan to issue an emergency warning for the Okinawa prefecture and told residents to take cover indoors or underground. However, Japan’s government later stated that the missile had flown past and towards the Pacific Ocean, while it also lifted the emergency warning for the Okinawa prefecture.
• North Korea confirmed it launched a space rocket in the early hours of Thursday and said an accident happened in which the satellite launch failed at the third stage, while it plans another launch in October, according to KCNA.
• South Korea's Foreign Minister spoke with US and Japanese counterparts and they strongly condemned North Korea's ballistic missile launch which was said to be disguised as a space launch, as well as agreed to consider unilateral sanctions in response, according to Reuters.
• South Korean military said it views North Korea's launch as a failure and a clear violation of UN resolutions, while it added that joint drills with the US will continue at an intensive level and it will monitor North Korea's various activities and stay alert to any provocations, according to Reuters.
• Japanese Chief Cabinet Secretary Matsuno said Japan will lodge a protest to North Korea in the strongest possible terms following missile tests and will soon convene a national security committee meeting.
• The White House said President Biden's national security team is assessing the North Korean situation in close coordination with allies and partners, while it added the door has not closed on diplomacy but Pyongyang must immediately cease provocative actions.

EU/UK

NOTABLE HEADLINES

• UK NHS senior doctors announced to conduct three consecutive days of strike action during the ruling Tory party's annual conference in October, according to FT.