• APAC stocks traded mixed following a similar lead from Wall Street, whilst Hong Kong markets were closed due to Typhoon Saola.
• PBoC is to cut FX RRR by 2ppts to 4% (prev. 6%) from September 15th, according to the central bank; Several major Chinese banks lowered their deposit rates.
• DXY traded choppily within a tight range but was knocked to session lows after the PBoC headlines induced Yuan strength, which later pared back.
• Softbank's (9984 JT) Arm Holdings is expected to set a price range for its IPO next week, with plans to price its shares on September 13th and trading to start the following day, according to Reuters sources.
• European equity futures are indicative of a flat/firmer open with the Euro Stoxx 50 future +0.1% after cash markets closed lower by 0.4% yesterday. 
• Looking ahead, highlights include UK Nationwide House Prices, EZ, UK, US Manufacturing PMI Final, US Jobs Report, Canadian GDP, US ISM Manufacturing, speeches from Fed’s Bostic & Mester, ECB's Vujcic.

US TRADE

EQUITIES

• US stocks were mixed on Thursday with NDX outperforming, SPX and RUT flat while the Dow lagged, with eyes now set on the US jobs report.
• SPX -0.16% at 4,507, NDX +0.25% at 15,501, DJIA -0.48% at 34,721, RUT -0.19% at 1,899.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Broadcom (AVGO) Q3 2023 (USD): Adj. EPS 10.54 (exp. 10.43), Revenue 8.88bln (exp. 8.87bln)Shares fell 4.6%
• Dell Technologies Inc (DELL) Q2 2023 (USD): Adj. EPS 1.74 (exp. 1.14), Revenue 22.9bln (exp. 20.85bln). Shares rose 8.3%
• UPS (UPS) confirmed the offer to some pilots. Co. is seeking to reduce pilots amid a drop in air freight volume and is offering voluntary separation for "eligible" pilots, according to Reuters.

DATA RECAP

• US Dallas Fed PCE* (Jul 2023) 2.4% (Prev. 2.5%)
• US 30-yr fixed rate mortgages 7.18% in w/e August 31st (prev. 7.23% W/W) - Freddie Mac

APAC TRADE

EQUITIES

• APAC stocks traded mixed following a similar lead from Wall Street, whilst Hong Kong markets were closed due to Typhoon Saola.
• ASX 200 declined further under 7,300 and was weighted by its metals names as Fortescue Metals slumped after its CFO left three days after the CEO's departure.
• Nikkei 225 opened in the red but quickly trimmed losses with the rebound spearheaded by the energy sector.
• KOSPI was underpinned by the South Korean trade data which printed better than feared.
• Shanghai Comp opened firmer after large Chinese banks cut their deposit rates, while the PBoC also lowered down payment for first and second-time home buyers and announced a cut to the FX RRR. Modest upticks were seen after the Caixin PMI Finals were surprisingly revised into expansion territory.
• US equity futures traded flat with a slight upward bias in the run-up to the US jobs report.
• European equity futures are indicative of a flat/firmer open with the Euro Stoxx 50 future +0.1% after cash markets closed lower by 0.4% yesterday.

FX

• DXY traded choppily within a tight range. The modest strength seen earlier in the session was wiped out amid the Yuan strength after the PBoC announced it is to cut its FX RRR by 2ppt, although that Yuan strength later pared back.
• On the announcement, USD/CNH immediately moved lower from levels around 7.2700 towards 7.2550 before extending losses to a 7.2394 APAC low and thereafter rising back to pre-announcement levels.
• EUR/USD sat around its prior day’s lows and moved in tandem with the Dollar, with the pair back around 1.0850 as technicians eye its 200 DMA (1.0815) for the next support.
• GBP/USD similarly languished around the prior day’s trough (1.2650), with Cable also seeing a modest and brief leg higher from the aforementioned Dollar pullback.
• USD/JPY benefitted PBoC headlines and fell under the 145.50 mark after seeing no notable reaction to the decline in Q2 Japanese business capex and to the modest revision lower in August manufacturing PMI.
• Antipodeans were subdued at the start of the session, but the APAC currencies were briefly boosted in tandem with the Yuan amid the PBoC FX RRR cut, although AUD/USD found overnight resistance at 0.6500.
• PBoC set USD/CNY mid-point at 7.1788 vs exp. 7.2967 (prev. 7.1811)

FIXED INCOME

• 10yr UST futures traded sideways in a tight range in the run-up to the jobs data, and after the curve was bid across the board yesterday, with some citing month-end.
• Bund futures were uneventful and found overnight support at levels near 133.00 as the contract held onto yesterday’s gains.
• 10yr JGB futures held an upward bias amid tailwinds from Western counterparts, with the corresponding JGB yield dipping under 65bps around the open.

COMMODITIES

• Crude futures were on a slightly firmer footing and extended on the prior session’s gains, with Brent testing 87/bbl to the upside as it takes aim at the August high of USD 87.37/bbl.
• Spot gold saw an uptick as the DXY pulled back but price action remains within yesterday’s range and under USD 1,950/oz ahead of NFPs.
• Copper futures were lifted on the aforementioned China announcement, with 3M LME copper briefly topping USD 8,500/t to the upside.
• Chevron's (CVX) Australia LNG workers reject the Co's bargaining offer, according to unions; less than 1% of the Wheatstone and Gorgon downstream workforce voted in support of the offer, according to Reuters.
• Russia introduced a 7% export duty on a number of fertilisers from September 1st, according to Interfax.

CRYPTO

• Bitcoin meandered around USD 26k after falling over USD 1,000 in late US hours.

NOTABLE ASIA-PAC HEADLINES

• PBoC is to cut FX RRR by 2ppts to 4% (prev. 6%) from September 15th, according to the central bank. China's Global Times, on the PBoC FX RRR cut, said "This move aims to enhance the ability of financial institutions to utilize foreign exchange capital."
• Several major Chinese banks lowered their deposit rates, including ICBC, China Construction Bank, Bank of Communications, and Bank of China.
• China's Shenzhen City will suspend work, businesses, transportation, and markets from Friday afternoon amid Typhoon Saola, according to the Shenzhen Government.
• PBoC sold CNY 101bln via 7-day reverse repos with the rate at 1.80% for a CNY 120bln net injection.
• Softbank's (9984 JT) Arm Holdings is expected to set a price range for its IPO next week, with plans to price its shares on September 13th and trading to start the following day, according to Reuters sources.
• Japanese Finance Minister Suzuki said FX moves should be set by the market and should reflect fundamentals; sudden FX moves are undesirable, according to Reuters.

DATA RECAP

• Chinese Caixin Manufacturing PMI Final (Aug) 51.0 vs. Exp. 49.3 (Prev. 49.2).
• South Korean Trade Balance Prelim (Aug 2023) 0.87B vs. Exp. -0.4B (Prev. 1.65B)
• South Korean Import Growth Prelim (Aug 2023) -22.8% vs. Exp. -23.2% (Prev. -25.4%)
• South Korean Export Growth Prelim (Aug 2023) -8.4% vs. Exp. -11.6% (Prev. -16.4%)
• South Korean Manufacturing PMI (Aug) 48.9 (Prev. 49.4)
• Japanese Business Capex (MOF) YY (Q2 2023) 4.5% (Prev. 11.0%)
• Japanese Manufacturing PMI (Aug F) 49.6 (Prev. 49.7)
• New Zealand ANZ Consumer Confidence Index MM (Aug) 1.6% (Prev. -2.1%)
• New Zealand ANZ Consumer Confidence Index (Aug) 85.0 (Prev. 83.7 )

GEOPOLITICS

• Japan imposed additional sanctions against North Korea, according to Reuters.

EU/UK

NOTABLE HEADLINES

• ECB's de Guindos said the latest data from July and August point towards economic deceleration in Q3 and probably in Q4, and the ECB needs to keep working to bring inflation back to the 2% target. He said the latest data from inflation in August has been very similar to July, and the rate decision in September is still up for debate. He said data in the next few days is key to the September ECB decision, according to Reuters.