• APAC stocks were predominantly lower following the mixed handover from Wall St, where the major indices were somewhat choppy and small caps underperformed as yields edged higher.
• US equity futures were lacklustre with participants awaiting comments from Fed Chair Powell and a slew of US data releases.
• European equity futures indicate a slightly lower cash market open with Euro Stoxx 50 futures down 0.3% after the cash market finished with losses of 0.2% on Wednesday.
• Iran is ready to sign an agreement with certain conditions in exchange for the lifting of sanctions and would commit to never making nuclear weapons, as well as getting rid of its stockpiles of highly enriched uranium, according to a top advisor to the Supreme Leader cited by NBC News.
• Russian President Putin was not on a list of negotiators the Kremlin published for talks with Ukraine in Istanbul on Thursday.
• Looking ahead, highlights include German Wholesale Price Index, UK GDP, EZ Employment & GDP, US NY Fed Manufacturing, Jobless Claims, Philly Fed Index, PPI, Retail Sales & Industrial Production, IEA OMR, Speakers include ECB’s Cipollone, Elderson & de Guindos, Fed Chair Powell & Barr, BoE’s Dhingra, Supply from US.
• Earnings from Applied Materials, Take-Two, Alibaba, Walmart, Deere, Deutsche Telekom, Siemens, Allianz, Merck, Thyssenkrupp, RWE, Siemens, National Grid, United Utilities & Richemont.

SNAPSHOT

• Click for the Newsquawk Week Ahead.

US TRADE

EQUITIES

• US stocks finished mixed on what was a relatively rangebound and choppy session amid a lack of fresh major macro themes although gains were seen in the Mag-7 led sectors such as Communications, Tech and Consumer Discretionary, while Healthcare, Materials and Real Estate were at the other end of the spectrum with the latter pressured, as was the small-cap Russell 2000, amid the continued upside in US yields.
• SPX +0.10% at 5,983, NDX +0.57% at 21,319, DJI -0.21% at 42,051, RUT -0.88% at 2,084.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump received a USD 1.2tln economic commitment from Qatar.
• US Treasury Secretary Bessent and USTR Greer are engaged with China to stop fentanyl.
• WTO chief warned that US bilateral tariff deals could put trade principles at risk and said global trade was in a crisis despite the recent de-escalation of the US-China tariff war, according to FT.

NOTABLE HEADLINES

• Fed's Daly (2027 voter) said monetary policy is well-positioned and moderately restrictive, while she added businesses are cautious but are not stalling out and Fed policy can respond to whatever in the economy. Daly said patience is the word of the day and that uncertainty is not depressing activity but could affect the economy if it persists.

APAC TRADE

EQUITIES

• APAC stocks were predominantly lower following the mixed handover from Wall St, where the major indices were somewhat choppy and small caps underperformed as yields edged higher.
• ASX 200 traded indecisively but eventually eked mild gains in the aftermath of the stronger-than-expected jobs data from Australia.
• Nikkei 225 underperformed following recent currency strength and as earnings results remained in the spotlight in Japan.
• Hang Seng and Shanghai Comp were lacklustre amid little in the way of fresh catalysts to spur momentum, while Tencent shares traded indecisively post-earnings and Alibaba results are scheduled for release today.
• US equity futures were lacklustre with participants awaiting comments from Fed Chair Powell and a slew of US data releases.
• European equity futures indicate a slightly lower cash market open with Euro Stoxx 50 futures down 0.3% after the cash market finished with losses of 0.2% on Wednesday.

FX

• DXY marginally retreated after yesterday's two-way price action whereby the dollar ultimately strengthened on the day as US yields edged higher and with a Bloomberg report noting that the US is not looking to weaken the dollar as part of trade deals. There were reports of further deals from President Trump's Middle East trip with a USD 1.2tln economic commitment from Qatar, while the latest comments from Fed officials had little impact with participants now awaiting comments from Fed Chair Powell and a slew of data releases including US Retail Sales, Industrial Production, PPI, NY Fed Manufacturing, Philly Fed and Jobless Claims.
• EUR/USD eked mild gains and retested the 1.1200 level after recent fluctuations and with ECB speakers scheduled later.
• GBP/USD was contained beneath the 1.3300 handle with participants awaiting UK GDP data for Q1, while it was also reported that plans for a reset of UK-EU ties hit a snag after EU member states demanded further concessions from the UK on fishing rights and youth mobility.
• USD/JPY retreated as the underperformance in Japanese stocks spurred some haven flows into the yen.
• Antipodeans were rangebound amid the mixed risk appetite with only mild support seen in AUD/USD following the stronger-than-expected employment data from Australia.
• PBoC set USD/CNY mid-point at 7.1963 vs exp. 7.2217 (Prev. 7.1956).

FIXED INCOME

• 10yr UST futures lingered around the prior day's trough after retreating throughout Wall St hours amid the higher yield environment as participants dialled back further Fed rate cut bets for 2025.
• Bund futures were stuck near a monthly low beneath the 130.00 level after recent supply and ahead of German wholesale prices.
• 10yr JGB futures declined but were off this week's lows with mild support seen around the 139.00 level and as Japanese stocks retreated, but with the recovery limited amid a lack of tier-1 data from Japan and after a weaker-than-previous 5yr JGB auction.

COMMODITIES

• Crude futures were pressured following a report that Iran is ready to sign an agreement with certain conditions in exchange for the lifting of sanctions and would commit to never making nuclear weapons and getting rid of its stockpiles of highly enriched uranium.
• Spot gold extended on recent losses with demand subdued after slumping beneath the USD 3,200/oz level yesterday.
• Copper futures continued on its mid-week pullback amid headwinds from the mostly downbeat risk sentiment in Asia.

CRYPTO

• Bitcoin gradually retreated overnight and reverted to beneath the USD 103,000 level.

NOTABLE ASIA-PAC HEADLINES

• Chinese President Xi hopes the Danish Chamber of Commerce in China and member companies will continue to role as a bridge between China and Denmark and between China and Europe, according to Xinhua.
• PBoC Governor Pan said China welcomes more outstanding Latin American market players to issue Panda bonds in China and share market development opportunities, while he added that China and Latin America should promote financial cooperation in a wider range of fields and a deeper level.

DATA RECAP

• Australian Employment (Apr) 89.0k vs. Exp. 20.0k (Prev. 32.2k)
• Australian Unemployment Rate (Apr) 4.1% vs. Exp. 4.1% (Prev. 4.1%)
• Australian Participation Rate (Apr) 67.1% vs. Exp. 66.8% (Prev. 66.8%)

GEOPOLITICS

MIDDLE EAST

• Qatar's PM said Israeli attacks in Gaza this week send a signal that they are not interested in negotiating a ceasefire, while he added that a US humanitarian plan for Gaza is not necessary and the UN should be allowed to deliver aid, according to CNN.
• Gaza Humanitarian Foundation announced it will launch operations in the Gaza Strip before the end of the month and stated that Israel has agreed to expand the number of distribution sites to serve the entire population of Gaza.
• US President Trump said Qatar is working with the US on negotiating an Iran deal and he wants to see Iran thrive.
• US issued new Iran-related sanctions which target individuals in China and Iran.
• Iranian President Pezeshkian said Iran will not bow to any bullying from US President Trump who he suggested thinks that he can come to the region, chant slogans, and scare them.
• Iran is ready to sign an agreement with certain conditions in exchange for the lifting of sanctions and would commit to never making nuclear weapons, as well as getting rid of its stockpiles of highly enriched uranium, according to a top advisor to the Supreme Leader cited by NBC News.

RUSSIA-UKRAINE

• Russian President Putin was not on a list of negotiators the Kremlin published for talks with Ukraine in Istanbul on Thursday.
• Ukrainian President Zelensky said he is waiting to see who will represent Russia at proposed talks in Turkey and then will decide on Ukraine's next steps.

OTHER

• China's Hainan Maritime Safety Administration warned of military training taking place in an area of the South China Sea from May 15th to 16th and prohibited entry, while it noted there were some drills near Vietnam and China's Hainan.

EU/UK

NOTABLE HEADLINES

• Plans for a reset of UK-EU relations hit trouble due to fishing rights and youth mobility as EU member states demanded further concessions from the UK, according to the FT.