Stocks slip and the Dollar surges alongside Bitcoin on the first trading day of the new year - Newsquawk Daily Asia-Pac Opening News

US stocks were sold on Tuesday, with big tech leading the losses, exhibited by the equal-weight S&P 500 outperforming the market cap-weighted benchmark.
The Dollar was firmer to start 2024, seeing the index hit a peak of 102.22, with little fresh fundamental newsflow behind the move but more a function of firmer yields.
Treasuries sold off on Tuesday amid a deluge of New Year corporate debt issuance before the downward PMI revision capped the losses.
Oil prices were ultimately lower on Tuesday after the initial strength on Red Sea troubles reversed in the US session.
Looking ahead, highlights include Indian Manufacturing PMI, and market holiday in Japan.

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3rd January 2024

SNAPSHOT

US stocks were sold on Tuesday, with big tech leading the losses, exhibited by the equal-weight S&P 500 outperforming the market cap-weighted benchmark. There was not one singular reason for the stock weakness, with desks pointing to both fundamental and technical factors such as ongoing rotation, Barclays' downgrade of Apple (AAPL), Middle East troubles, and downbeat PMIs, to name a few.
SPX -0.57% at 4,742, NDX -1.68% at 16,543, DJI +0.07% at 37,715, RUT -0.70% at 2,012.
Click here for a detailed summary.

DATA RECAP

The Dollar was firmer to start 2024, seeing the index hit a peak of 102.22, with little fresh fundamental newsflow behind the move but more a function of firmer yields (initially driven by crude gains and heavy US corporate supply) and possible technicals (across pairs) ahead of the week's risk events.
All G10 peers (ex-Dollar) saw weakness amid the broad Buck strength and risk-aversion, to see the NZD underperform with NZD/USD hitting a low of 0.6250 vs earlier peaks of 0.6326.
CAD, JPY, EUR, and GBP all saw weakness to differing levels against the Buck, with the GBP noticing the greatest losses.
Euro was weaker and EUR/USD fell beneath 1.0950 amid the aforementioned themes, accentuated by the weak EZ PMI and M3 data earlier on. ECB’s De Cos noted uncertainty over data remains high and inflation is expected to continue its downward trend.
EMFX was also exclusively weaker on the surging buck. Yuan was weighed on by Chinese NBS PMIs (Dec) Manufacturing falling to 49.0 (exp. 49.5, Prev. 49.4), with non-Manufacturing 50.4 (Prev. 50.2). Meanwhile, Caixin Manufacturing PMI Final (Dec) marginally rose to 50.8 (exp. 50.4, Prev. 50.7).

Treasuries sold off on Tuesday amid a deluge of New Year corporate debt issuance before the downward PMI revision capped the losses; T-Note (H4) futures settled 19 ticks lower at 112-09.

Oil prices were ultimately lower on Tuesday after the initial strength on Red Sea troubles reversed in the US session. WTI and Brent futures climbed to peaks of USD 73.64/bbl and 79.06/bbl, respectively, at the London/NY handover before strong selling was seen after cash energy products opened from 09:00ET.
OPEC+ plans a monitoring meeting early-February, via Bloomberg citing delegates.
Libya's Sharara oilfield output has been curbed by protests, according to an official cited by Bloomberg.
German LNG pipeline to Mukran terminal is delayed by two months, according to Reuters.

Senior Hamas official Saleh Al-Arouri was killed in an Israeli drone strike on Dahiyeh, according to three security sources cited by Reuters.
Lebanon's Hezbollah said assassinating Senior Hamas officials in Beirut is a 'serious assault of Lebanon' and a 'dangerous development in course of the war between enemy and axis of resistance'. Hezbollah added that the assassination of al-Arouri will never go unpunished and the resistance will respond with the utmost readiness.
Iran said Hamas official Al-Arouri's assassination will undoubtedly further motivate the resistance to fight against Israel, according to state media.
British Maritime security firm Ambrey said a Malta-flagged container ship reported seeing three explosions towards its port quarter 15 miles SW of Yemen's Mocha, according to Reuters.
UN Security Council President France said the council may meet as soon as Wednesday on the Red Sea, according to Reuters.
Maersk (MAERSKB DC) said it will continue to pause all cargo movement via the Red Sea whilst it assesses the constantly evolving situation.

NOTABLE HEADLINES

Japanese Airlines craft, JL516, which became engulfed in flames after landing at Tokyo Airport is an Airbus (AIR FP) A350-900; fire caused by collision with another craft.
Earthquake warning issued in Japan's Ishikawa prefecture; magnitude of "upper five" on Japan's one-to-seven scale; no tsunami warning issued, according to NHK.

NOTABLE HEADLINES

EUROPEAN CLOSES: DAX +0.11% at 16,769.36, FTSE 100 -0.15% at 7,721.52, CAC 40 -0.16% at 7,530.86, Euro Stoxx 50 -0.21% at 4,511.95, AEX -0.47% at 783.11, IBEX 35 +0.79% at 10,182.10, FTSE MIB +0.57% at 30,524.63.
ECB's De Cos said uncertainty over data remains high; inflation is expected to continue its downward trend, according to Reuters.
Click here for the European Market Wrap.

EUROPEAN DATA RECAP

EU HCOB Manufacturing Final PMI (Dec) 44.4 vs. Exp. 44.2 (Prev. 44.2)
German HCOB Manufacturing PMI (Dec) 43.3 (Prev. 43.1)
French S&P Global Manufacturing PMI (Dec) 42.1 (Prev. 42)
Italian HCOB Manufacturing PMI (Dec) 45.3 (Prev. 44.4)
Spanish HCOB Manufacturing PMI (Dec) 46.2 (Prev. 46.3)
EZ Money-M3 Annual Growth (Nov) -0.9% vs. Exp. -1.0% (Prev. -1.0%)
UK S&P Global/CIPS Manufacturing PMI Final (Dec) 46.2 vs. Exp. 46.4 (Prev. 46.4)

Source: Newsquawk