US stock indices printed fresh records but finished off their highs in a quiet start to a risk packed week - Newsquawk Asia-Pac Market Open

US stocks eked mild gains although finished off the fresh record levels seen earlier in the day in what was a quiet start to a risk-packed week. Nonetheless, all major indices closed in the green and the DJIA topped 38,000 for the first time, while the Russell 2000 small-cap index was the notable outperformer.
USD finished relatively flat with price action kept to a very tight range (103.11-103.37) amid thin headline newsflow and a light calendar ahead of the major risk events later in the week.
Looking ahead, highlights include Australian NAB Business Survey, Singapore CPI, BoJ Policy Decision & Press Conference.

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Highlights include Australian NAB Business Survey, Singapore CPI, BoJ Policy Decision & Press Conference.
Click here for the Newsquawk Week Ahead.

US TRADE

US stocks eked mild gains although finished off the fresh record levels seen earlier in the day in what was a quiet start to a risk-packed week. Nonetheless, all major indices closed in the green and the DJIA topped 38,000 for the first time, while the Russell 2000 small-cap index was the notable outperformer.
SPX +0.22% at 4,850, NDX +0.09% at 17,330, DJIA +0.36% at 38,001, RUT +2.01% at 1,983.
Click here for a detailed summary.

NOTABLE HEADLINES

White House Economic Adviser Brainard said a lacklustre recovery in China has not had a particularly strong effect on the US economy.

DATA RECAP

USD finished relatively flat with price action kept to a very tight range (103.11-103.37) amid thin headline newsflow and a light calendar ahead of the major risk events later in the week.
EUR saw marginal losses and failed to sustain the 1.0900 status in the absence of any catalysts.
GBP was flat against the greenback and just about held on to the 1.2700 handle.
JPY traded on both sides of 148.00 with price action choppy ahead of the looming BoJ policy decision.

Treasuries were bid across the board, particularly in the belly after JP Morgan and Morgan Stanley buy recommendation for 5yr notes after the prior week's decline which was the worst since May last year.

Oil prices were firmer albeit in very thin newsflow ahead of a week littered with pivotal risk events.
A fire at Russia's Novatek Ust-Luga terminal was extinguished, according to local authorities.
Natural Gas Pipeline Co. said due to the current forecasts, they have returned to normal operation conditions and are actively monitoring flow rates.

Israel proposed a two-month fighting pause in Gaza for the release of all hostages, according to Axios.
Israel's army said it carried out a raid on a Hezbollah building in Maroun al-Ras, south of Lebanon.
Hezbollah said they targeted Israeli soldiers with missiles in the vicinity of the Evin Menachem colony and achieved direct hits, according to Al Jazeera.
Yemen's Houthi military spokesman said naval forces carried out a military operation targeting an American military cargo ship in the Gulf of Aden. However, it was later reported that the US military said a Houthi report of an alleged successful attack on MV Ocean Jazz is 'patently false'.
White House's Kirby said the US still believes that normalisation between Saudi Arabia and Israel is possible.

NOTABLE HEADLINES

China cabinet passed guidance for promoting the delivery industry and will accelerate an upgrade of AI in key industries, while they will consolidate and strengthen the economic recovery. Furthermore, China will increase medium and long-term capital in the market to strengthen market stability, according to state media reports.
Chinese major state-owned banks are curtailing lending to tighten CNY liquidity in the offshore market and banks were seen selling USD in the onshore FX market, according to Reuters sources.
China is reportedly lobbying nations to show support for its human rights record before a review by the UN, according to Reuters citing diplomatic sources.
China’s Vice President said in a meeting with the HSBC (5 HK) chairman that he hopes HSBC will deepen cooperation with China to improve Hong Kong's status as a financial centre.
Japanese PM Kishida said wage growth outpacing prices is a requirement for a virtuous cycle and requests firms provide larger pay rises this year, while he added that wage hikes at small and medium firms are seen as essential.
Interest payments on Japanese government bonds could swell to JPY 15.3tln (USD 103bln) in fiscal 2027 which would be a roughly 60% increase from the forecast for the coming fiscal year, as borrowing costs rise, according to a government estimate seen by Nikkei.