• APAC stocks followed suit to the mixed performance stateside, where the S&P 500 and Nasdaq printed fresh record highs.
• US President Trump's administration appealed the court ruling blocking the removal of Fed Governor Cook.
• US Senate Republicans are aiming to confirm President Trump’s temporary Federal Reserve pick Stephen Miran as soon as Monday, according to Politico, citing two sources
• EU is reportedly very unlikely to impose crippling tariffs on India or China, the main buyers of Russian oil, as US President Trump urged the bloc to do so, according to Reuters citing EU sources.
• European equity futures indicate a flat cash market open with Euro Stoxx 50 futures U/C after the cash market closed with losses of 0.1% on Wednesday.
• Looking ahead, highlights include US CPI (Aug) & Jobless Claims, ECB Policy Announcement & Press Conference, CBRT Announcement, IEA & OPEC Monthly Report, Supply from Italy and the US, and Earnings from Adobe.

SNAPSHOT

• Click for the Newsquawk Week Ahead.

US TRADE

EQUITIES

• US stocks traded mixed in which the S&P 500 and Nasdaq Comp. printed fresh record highs, but the DJIA and small-cap Russell 2000 lagged, while sectors were varied with outperformance seen in Utilities, Tech, and Energy, in which Tech names were largely boosted by Oracle (ORCL) after rallying post-earnings with a chunky RPO of USD 455bln as the large backlog of orders only emboldened the high demands for the AI market and helped support AI infrastructure names (semis and cloud providers).
• Nonetheless, the attention was on PPI data, which printed softer-than-expected and spurred upside in treasuries and initially pressured the dollar as it helped ease the sticky inflation fears, amid a deteriorating labour market, although the attention now shifts to the incoming CPI report on Thursday.
• SPX +0.31% at 6,533, NDX +0.04% at 23,849, DJI -0.48% at 45,491, RUT -0.25% at 2,376.
• Click here for a detailed summary.

TARIFFS/TRADE

• EU is reportedly very unlikely to impose crippling tariffs on India or China, the main buyers of Russian oil, as US President Trump urged the bloc to do so, according to Reuters citing EU sources who added that the EU treats tariffs in a different way to sanctions and only imposes them after an investigation that usually lasts months to establish a legally sound justification. Furthermore, an EU diplomat said there are no talks so far on possible tariffs on India or China, while another EU source said such tariffs were risky and could be too broad, as well as noted it was easier to sanction specific entities and open the door to delisting them.
• South Korean President Lee said there will be more ways to negotiate with the US, and a final conclusion on trade negotiations with the US is expected to be rational, while he added they are in discussions with the US to operate visa systems normally and that Korean businesses will now be hesitant about investing in the US following the immigration raid. Lee also noted that various factors are involved in trade negotiations with the US, including nuclear material reprocessing and defence costs. Furthermore, South Korea's Industry Minister is to travel to the US today for follow-up trade negotiations.
• US President Trump reportedly halted the deportation of Korean workers to encourage them to train Americans, and Seoul officials said Trump gave those at the Hyundai Motor (005380 KS)-LG Energy Solution (373220 KS) battery plant an option to stay, according to FT.
• Mexico's Economy Minister said a new tariff will be put on light vehicles and auto parts, raising the tariff on cars from Asia, particularly from China, from 20% to 50%.

NOTABLE HEADLINES

• US President Trump's administration appealed the court ruling blocking the removal of Fed Governor Cook.
• US Senate Republicans are aiming to confirm President Trump’s temporary Federal Reserve pick Stephen Miran as soon as Monday, according to Politico, citing two sources

APAC TRADE

EQUITIES

• APAC stocks followed suit to the mixed performance stateside, where the S&P 500 and Nasdaq printed fresh record highs after cooler-than-expected PPI data, but with some cautiousness seen as participants braced for the incoming US CPI report.
• ASX 200 was subdued in the absence of any notable data or drivers, and with the downside led by healthcare, consumer discretionary and financials.
• Nikkei 225 returned to above the 44,000 level and extended on record highs despite mixed data.
• Hang Seng and Shanghai Comp were mixed with the Hong Kong benchmark dragged lower by pharmaceutical stocks after reports that the US is considering severe restrictions on medicines from China, while the mainland was underpinned after recent policy pledges by China's state planner.
• US equity futures traded rangebound with participants lacking conviction ahead of US CPI data.
• European equity futures indicate a flat cash market open with Euro Stoxx 50 futures U/C after the cash market closed with losses of 0.1% on Wednesday.

FX

• DXY was rangebound after the prior day's ultimately flat performance despite the initial knee-jerk selling in reaction to the cooler-than-expected US PPI data, while price action was contained overnight as participants braced for the US CPI data.
• EUR/USD remained lacklustre after reverting to sub-1.1700 territory, and as the focus also turns to the ECB meeting.
• GBP/USD struggled for direction amid little fresh pertinent catalysts for the UK, and after the latest UK RICS House Price survey showed a slowing housing market amid easing buyer demand.
• USD/JPY traded sideways after somewhat mixed data releases and with only marginal tailwinds seen alongside the fresh record highs in Tokyo stocks.
• Antipodeans conformed to the humdrum mood seen across the FX space amid the mixed risk appetite and in the absence of pertinent data releases.
• PBoC set USD/CNY mid-point at 7.1034 vs exp. 7.1157 (Prev. 7.1062)

FIXED INCOME

• 10yr UST futures pared some of its gains after climbing yesterday on the back of softer-than-expected PPI data, with demand constrained overnight ahead of the US CPI report and further supply, including a 30yr bond auction.
• Bund futures lacked conviction ahead of the ECB policy meeting but remain above the 129.00 near-term support level.
• 10yr JGB futures struggled for direction amid a non-committal mood in global peers and after somewhat mixed Japanese data, including PPI Y/Y, which matched estimates.

COMMODITIES

• Crude futures paused overnight following their recent advances, which were facilitated by geopolitical developments in the Middle East and Eastern Europe, with an uplift seen after comments from US President Trump, who posted "What’s with Russia violating Poland’s airspace with drones? Here we go!".
• Spot gold was contained after hitting fresh record highs earlier this week, and as participants await US CPI data.
• Copper futures gradually pulled back from yesterday's peak with price action contained alongside the mixed risk sentiment.

CRYPTO

• Bitcoin marginally gained and returned to above the USD 114k level.

NOTABLE ASIA-PAC HEADLINES

• BoJ is firming up a strategy to unload its huge ETF holdings and is centring on gradual market sales, according to sources cited by Reuters, who added there is no consensus yet on the timing, with political uncertainty complicating the decision.
• South Korean President Lee held a conference on his first 100 days in office, where he stated the domestic economic indicators are showing signs of recovery and the stock market is recovering at a fast pace, while he added that measures on stabilising property prices will continue to be rolled out. Lee said unreasonably undervalued stocks are prevalent in the South Korean market and tax policies can be modified to revitalise stock markets, but noted that capital gains tax rules will not change, and he will leave it to Parliament to decide on capital gains tax rules. Furthermore, he said it is time for expansionary fiscal policy to achieve economic growth, even if it raises national debt.

DATA RECAP

• Japanese Corp Goods Price MM (Aug) -0.2% vs. Exp. -0.1% (Prev. 0.2%, Rev. 0.3%)
• Japanese Corp Goods Price YY (Aug) 2.7% vs. Exp. 2.7% (Prev. 2.6%, Rev. 2.5%)
• Japanese Business Survey Index (Q3) 3.8% (Prev. -4.8%)

GEOPOLITICS

MIDDLE EAST

• Israeli PM Netanyahu reportedly threatened Qatar and Turkey with a military attack, according to Tasnim News on X, citing Israeli media.
• Qatar said it condemns Israeli PM Netanyahu's explicit threats of future violations to state sovereignty, and it will work with its partners to ensure Netanyahu is held accountable.
• Qatari PM said Israeli PM Netanyahu is leading the Middle East to chaos and has been wasting Qatar's time by engaging in mediation, while he added the entire Gulf region is at risk and Qatar is reassessing everything about its mediating role and Hamas's future in Qatar. Furthermore, he said Qatari officers injured in the Israeli attack are in critical condition, and there will be a response that is under discussion with partners in the region to the attack in Doha.
• US President Trump reportedly had a heated call with Israeli Prime Minister Benjamin Netanyahu on Tuesday regarding the Israeli strike in Qatar, according to senior US administration officials cited by WSJ.
• US Pentagon approved an estimated USD 14.2mln presidential drawdown authority package for Lebanon, which will build the capacity of Lebanese armed forces to dismantle weapons caches and military infrastructure of non-state groups, including Hezbollah.

RUSSIA-UKRAINE

• Ukrainian President Zelensky said he spoke with European Commission President von der Leyen and discussed work with the US on Russian sanctions. Zelensky also said there must be an appropriate response to the Poland situation and noted they need to work on a joint air defence system and create an effective air shield over Europe, while he added they must respond together to all current challenges and be ready for potential threats to all Europeans in the future. Furthermore, he said they need to significantly increase joint funding for the production of interceptor drones.
• Polish President Nawrocki said he spoke with US President Trump about the Russian violation of Polish airspace, and the conversation is part of a series of consultations he is conducting with allies. It was also reported that Polish PM Tusk said he received offers of support regarding air defence after speaking with European allies.
• French President Macron said he discussed with US President Trump the troubling developments in Russia's war of aggression against Ukraine.
• The UN Security Council was asked by five members to meet on Friday over Russia's violations of Polish airspace.
• EU said sanctions against Russia are to be increased significantly, and the EU foreign policy chief commented that the serious violation of European airspace strengthens their resolve to support Ukraine.

OTHER

• South Korean President Lee said North Korea's reaction has been cold but stated that no matter how North Korea reacts, easing tensions will benefit South Korea, while he added North Korea's nuclear and missile programs are a complex issue directly involving the US. Furthermore, he said South Korea doesn't necessarily have to lead in improving relations with North Korea and that US President Trump can have the most powerful influence on North Korea issues, as well as noted that they will keep trying to restore trust with North Korea.
• North Korea's leader Kim is believed to be expanding ties with China following his visit to China, and there is a higher chance that China will support North Korea via unofficial trade, according to South Korean lawmakers citing South Korea's spy agency.
• The Philippines Foreign Ministry strongly protested the recent approval by China's State Council of the establishment of the Kuanyan Island National Nature Reserve, and urged China to respect the sovereignty and jurisdiction of the Philippines over Scarborough Shoal, while the Philippines also urged China to refrain from enforcing and immediately withdraw its State Council issuance.

EU/UK

NOTABLE HEADLINES

DATA RECAP

• UK RICS Housing Survey (Aug) -19.0 vs. Exp. -10.0 (Prev. -13.0)