Newsquawk

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  • Choppy price action seen across equities heading into month/quarter/HY-end
  • California Governor Newsom told Imperial County to shut back down amid the COVID-19 surge and ordered 7 counties including LA to close bars
  • US and China will place tit-for-tat visa restrictions on individuals over Hong Kong
  • In FX, DXY remains softer, EUR the outperformer and GBP weaker, whilst the UST curve is modestly steeper
  • Looking ahead,...
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  • Focus remains on the COVID-19 case count with the number of infections in the US now surpassing 2.5mln
  • As such, Asian bourses began the week lower across the board with some areas in the US back-pedaling on reopening measures
  • The DXY heads into the EU open on the backfoot with GBP an outperformer in the G10 space ahead of upcoming Brexit talks
  • However, reports note that senior MPs in the Conservative Party are urging Brexit negotiators to...
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  • Sentiment remains somewhat choppy as European bourses post gains over 1% while US futures are flat/mixed but have been grinding higher recently
  • Federal Reserve stress tests results stated that the Fed is to cap dividend payments and ban share repurchases in Q3 for 34 of the largest banks; US banks are subdued in the pre-market
  • Nike earnings missed on both EPS and revenue, as such trade lower by ~3% in pre-market
  • Fox poll showed former VP Biden leads US President Trump in Florida, Georgia, North...
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  • Asia-Pac equity markets traded mostly higher as the region took impetus from Wall St's financial-led gains after US regulators approved the relaxing of Volcker rules
  • However, some advances in banking names retraced after-market following the Fed stress tests
  • Fed stress tests results stated that the Fed is to cap dividend payments and ban share repurchases in Q3 for 34 of the largest banks
  • Texas and Florida have halted the next phase of reopening’s for their economies, New Jersey continues with...
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  • Choppy trade throughout the European session amid a lack of fresh fundamental catalysts ahead of key events
  • US experienced its largest single day increase in new COVID-19 cases of more than 36,000
  • US President Trump is losing "significant" ground in six battleground states that secured his 2016 electoral College victory, NYT reports
  • In FX, DXY retains a 97.000+ status, Kiwi consolidates yesterday’s losses, Cable grinds higher; US yields are modestly expanding upon yesterday’s...
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  • Asian stocks suffered from spillover selling after the weakness seen in global counterparts amid mounting COVID-19 concerns stateside
  • US experienced its largest single day increase in new COVID-19 cases of more than 36,000
  • University of Washington IHME study forecasts US coronavirus cases to pick up in August and September with the death toll to reach 180K by October 1st
  • The DXY held on to gains above 97.00, EUR/USD hovers around 1.1250, GBP/USD maintains 1.24 status
  • ECB policymakers...
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  • Sentiment is downbeat with US futures faring better than EU peers, following a tentative APAC session before stocks deteriorated in EU hours amid USTR updates
  • US is reportedly targeting USD 3.1bln of exports from France, Germany, Spain and the UK with new tariffs; newsflow which sparked further risk-off and sent US 10yr yield briefly below 70bp
  • DOJ and State AG's are reportedly showing increasing interest in a possible antitrust probe into Apple regarding the App Store, via Politico
  • RBNZ maintained...
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  • Asian equity markets traded with a slight positive bias after momentum from global peers provided the initial constructive setting for the region
  • This followed a positive lead from Wall St. where the Nasdaq printed all-time highs, although some gains were trimmed as US COVID concerns mounted
  • A Texas County Official said that the Houston area COVID-19 ICU beds are to hit capacity in 11 days
  • The DXY was subdued below 97.00, EUR/USD and GBP/USD remain above 1.13 and 1.25 respectively 
  • RBNZ...
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  • Sentiment is firmer this morning after EZ PMIs and following overnight US-China volatility which prompted a swift clarification from Officials and President Trump
  • White House Trade Advisor Navarro said the US-China trade deal is over due to Beijing not alerting the US on COVID-19 sooner
  • However, Navarro later clarified these were out of context and Trump tweeted that the deal is fully intact
  • EZ & German Flash PMIs beat exp. but remain in contractionary territory while the French reading eclipsed...
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  • Asian equity markets traded mostly positive, but risk sentiment overnight saw volatility amid comments from White House Trade Adviser Navarro
  • White House Trade Adviser Navarro said the trade deal with China "is over", but later clarified his comments were taken out of context
  • US President Trump tweeted the China trade deal is fully intact and hopefully they will continue to live up to the agreement.
  • US Treasury Secretary Mnuchin said there...
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  • European bourses are off lows in choppy trade but have pulled-back slightly to unchanged/mixed; stateside, futures are firmer but off highs
  • Germany coronavirus reproduction rate surged to 2.88 on Sunday from 1.79 the day before based on a 4-day average, while the 7-day average was 2.03; albeit, caveated by RKI due to the small case number
  • UK PM Johnson is to unveil latest lockdown easing plan and review regarding 2-metre rule on Tuesday; separately, Chancellor Sunak...
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  • Asian equity markets began the week cautiously as sentiment was clouded by reports of increasing COVID-19 infections rates globally
  • WHO reported the largest singe-day increase of global infections, US cases rose above the 7-day average and Germany’s r-value stands at 2.88
  • The PBoC maintained its 1-year and 5-year Loan Prime Rates at 3.85% and 4.65% respectively as expected
  • DXY heads into the EU open softer, EUR/USD oscillates around 1.12 and...
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  • European bourses and US futures have been choppy with spurs of volatility on quad witching but retain an underlying bid
  • Texas coronavirus cases rose by 3516 to a total of nearly 100,000 which was the largest daily increase on record for the state
  • China is reportedly planning to step up purchases of US farm goods following on from discussions.
  • Fox News poll showed former VP Biden leading US President Trump by 50% vs. 38% (Prev. 48% vs. 40%), with the survey conducted June 13th-16th
  • FX sees...
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  • Asian equity markets attempted to shrug-off Wall Street’s pre-quadruple witching indecision with a slightly upbeat tone seen in the region
  • US Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs Stilwell said China’s attitude in Hawaii talks cannot be described as forthcoming
  • FX markets were relatively contained overnight with the DXY consolidating just below weekly highs around 97.50
  • Energy Intel tweeted the mood at the JMMC wasn’t very positive according to delegates;...
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  • US futures are mixed/flat in a choppy session for sentiment thus far which has been dictated by a downbeat APAC handover and further COVID-19 updates
  • The COVID-19 outbreak in Beijing is now under control, according to a Chinese CDC expert – subsequently, caveated that more cases will emerge in the coming days
  • China said the two sides articulated their positions in the meeting between top diplomat Yang and US Secretary of State Pompeo in Hawaii and agreed this was constructive dialogue
  • SNB left rates...
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  • Asian stocks traded mostly negative following a predominantly softer handover from Wall St. where focus remains on the COVID-19 case count
  • US-China tensions also remained in focus as China responded to President Trump’s recent signing of the Uighur human rights legislation
  • The DXY was relatively flat around the 97.00 level, EUR/USD and GBP/USD were uneventful overnight around 1.1250 and 1.2550 respectively
  • Former US National Security Adviser Bolton’s book claims US President Trump asked Chinese...
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  • European bourses have been choppy and are currently modestly firmer with US future posting similar performance at present
  • Crude downside seemingly led the deterioration in general risk sentiment with WTI & Brent still negative on the day; separately, DXY remains towards top-end of the day’s range
  • Group of prominent republican operatives that includes former officials from the Trump and George W. Bush administrations are launching a super PAC to turn out GOP voters for Joe Biden in November,...
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  • Asian equity markets failed to fully sustain the positive handover from Wall St with regional bourses indecisive amid geopolitical tensions and COVID-19 fears
  • Japanese trade data showed a larger than expected slump in Exports Y/Y, with Japan’s US-bound exports at the fastest pace of decline since March 2009
  • The DXY held on to the prior day’s gains around the 97.00 level with EUR/USD below 1.1300 and GBP/USD briefly below 1.2550
  • White House is in deep discussions on new stimulus worth at least USD...
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  • Sentiment is firmer this morning following the positive APAC lead which was bolstered by a draft US infrastructure plan; US futures are off highs, but are still over 1% firmer on the session
  • US President Trump administration is working on a draft plan for USD 1tln infrastructure proposal to stimulate the economy
  • North Korea demolished the inter-Korean joint liaison office & separately, Indian soldiers have reportedly been killed after a clash with Chinese soldiers
  • BoJ kept policy settings...
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  • Asia-Pac bourses notched considerable gains as the region took impetus from Wall Street's recovery
  • Optimism in the US was spurred by the pace of infections slowing in key US states and the Fed’s decision to directly purchase corporate bonds
  • WHO said more than 100 cases have now been confirmed in Beijing and China warned there is a very high risk of the new Beijing coronavirus cluster spreading
  • The BoJ kept policy settings unchanged but noted the size of market operations and lending facilities to...
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  • European equities opened with substantial losses but have since recuperated much of the downside
  • Beijing reported 36 new local cases on Monday bringing the total confirmed cases to 79 – with eight out of 16 districts in Beijing reporting cases on Monday according to Global Times
  • Beijing shut a fruit and vegetable market and imposed lockdown restrictions on residential areas nearby
  • UK PM Johnson is to tell EU leaders today that Brexit talks must be concluded by autumn at the latest
  • In FX, DXY...
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  • Asian equity markets traded negative and US equity futures also began the week on the backfoot in which the E-Mini S&P gapped below 3000
  • Beijing reported 36 new local cases on Monday bringing the total confirmed cases to 79 – with eight out of 16 districts in Beijing reporting cases on Monday according to Global Times
  • Beijing shut a fruit and vegetable market and imposed lockdown restrictions on residential areas nearby
  • Several US States...
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  • Sentiment has recovered in quiet newsflow after yesterday’s pronounced sell-off
  • Chinese PLA officer was reportedly arrested and charged with visa fraud as he tried to leave the US
  • UK government reportedly will formally rule out a Brexit deadline extension today and plans temporary light-touch customs checks with EU from next year, according to sources
  • Two new COVID-19 cases confirmed in Beijing as they close part of their key meat market
  • DXY is downbeat and towards lower-end of day’s range...
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  • Asian equity markets suffered losses following a steep sell-off on Wall Street amid fears of a second wave
  • US CDC reported that COVID-19 cases rose by 20,486 vs. Prev. 17,376; NYC positive test rate 1.7% vs. Prev. 1.5%; California case rate +2.3% vs. 7-day average +2.1%
  • Chinese PLA officer was reportedly arrested and charged with visa fraud as he tried to leave the US
  • UK government reportedly will formally rule out a Brexit deadline...
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  • Sentiment remains downbeat in a quiet session thus far after a negative APAC handover
  • DXY is subdued around the 96.00 mark weighed on by safe-havens while UST yields continue to bull-flatten
  • China reportedly continues to purchase US soybeans despite toughening rhetoric, least 10 cargoes purchased by state-run & private buyers in June
  • SCMP article suggested that nuclear arms control could be the next battleground in US-China rivalry after...
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