US stocks finished mostly lower in choppy trade with early tech headwinds - Newsquawk Asia-Pac Market Open

• US stocks were mostly lower but finished off their worst levels with early pressure in tech after chip names AMD and Intel were initially hit by reports of China phasing out US microprocessors from government PCs and servers, while the EU was also reported to open investigations into big tech names. Nonetheless, the Nasdaq clawed back most of the earlier losses and the Russell 2000 closed in the green with outperformance seen in the energy sector amid higher oil prices.
• USD was softer although the DXY held on to the 104.00 status with macro newsflow fairly sparse to start the week, while Fed speak from Bostic, Goolsbee, and Cook failed to alter the dial despite a hawkish Bostic who reiterated his new view of just one rate cut this year.
• Looking ahead, highlights include Australian Westpac Consumer Confidence, Japanese Services PPI & BoJ Core CPI, Singapore Industrial Production.

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LOOKING AHEAD

• Highlights include Australian Westpac Consumer Confidence, Japanese Services PPI & BoJ Core CPI, Singapore Industrial Production.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks were mostly lower but finished off their worst levels with early pressure in tech after chip names AMD and Intel were initially hit by reports of China phasing out US microprocessors from government PCs and servers, while the EU was also reported to open investigations into big tech names. Nonetheless, the Nasdaq clawed back most of the earlier losses and the Russell 2000 closed in the green with outperformance seen in the energy sector amid higher oil prices.
• SPX -0.31% at 5,218, NDX -0.34% at 18,227, DJIA -0.14% at 39,313, RUT +0.10% at 2,074.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed's Bostic (voter) said the US is still in a pandemic economy and he expects the economy and inflation to gradually slow, while he warned cutting rates too soon could be more disruptive and reiterated his new expectation of just one rate cut in 2024.
• Fed's Cook (voter) said a careful approach to easing policy over time can ensure that inflation sustainably returns to the target whilst maintaining a strong labour market. Cook said risks between meeting the dual mandate are coming better into balance and noted risks of easing too soon or too late, while she added that the path of disinflation has been bumpy, as expected, and that comprehensive wage growth measures show gradual sign of cooling.
• Fed's Goolsbee (non-voter) said he shares the same view as Chair Powell that the latest inflation reports have not changed the view too much but the reports were hotter than what he would've liked. Goolsbee added they are in historically restrictive territory and responded that everything is always on or off the table and stressed data dependence when asked if a June cut is on or off the table, while he added that three cuts in 2024 were in line with his thinking.
• Apple (AAPL), Google (GOOG) and Meta (META) are being probed by the EU under the new digital law with the EU to seek information on Amazon’s (AMZN) ranking practices in its marketplace. Furthermore, Apple and Alphabet were said to still charge recurring fees to app developers and Meta offers no real choice for users to opt out of data combination, while the EU intends to finish investigations within a 12-month period.

DATA RECAP

• US New Home Sales-Units (Feb) 0.662M vs. Exp. 0.675M (Prev. 0.661M, Rev. 0.664M)
• US New Home Sales Change MM (Feb) -0.3% (Prev. 1.5%, Rev. 1.7%)
• US Dallas Fed Manufacturing Bus Index (Mar) -14.4 (Prev. -11.3)

FX

• USD was softer although the DXY held on to the 104.00 status with macro newsflow fairly sparse to start the week, while Fed speak from Bostic, Goolsbee, and Cook failed to alter the dial despite a hawkish Bostic who reiterated his new view of just one rate cut this year.
• EUR benefitted from the weaker dollar, while there was little new for the Euro although ECB’s Panetta and Chief Economist Lane spoke, with the latter confident that wage growth is slowing as expected and confident the wage normalisation process is on track.
• GBP edged higher as the 1.2600 level provided an early platform for mild upward momentum which then stalled near 1.2650.
• JPY traded flat within a tight range and with price action contained by near-term resistance at 151.50.

FIXED INCOME

• Treasuries were lower across the curve ahead of front-loaded supply, PCE and Fed Chair Powell on Good Friday.

COMMODITIES

• Oil prices were firmer on rising geopolitical tensions while highs were seen after Reuters reported that Russia told oil companies to cut output to 9mln BPD by the end of June.
• Russia reportedly told oil companies to cut output to 9mln BPD by the end of June which is in line with its OPEC+ pledges, according to Reuters.

GEOPOLITICAL

MIDDLE EAST

• UN Security Council demanded an immediate ceasefire within Gaza, while the US abstained and did not veto the resolution.
• Israeli PM Netanyahu said the US failure to veto the UN Security Council ceasefire resolution is a "clear retreat" from its prior position and the change in position hurts war efforts and efforts to release hostages, while he decided not to send a high-level delegation to Washington in light of the new US position.
• Israel's Defence Minister said he will tell the White House that Israel will operate against Hamas everywhere including in places where they have not been yet.
• Israeli Broadcasting Authority reported that Israel is looking for alternative sources to obtain weapons for fear of stopping American military support if Rafah is stormed, according to Sky News Arabia.
• Hamas welcomed the UN Security Council ceasefire resolution on Gaza and affirmed readiness to engage in an immediate prisoner swap on both sides.
• White House said the US vote on the Gaza ceasefire does not represent a shift in policy and US officials will talk to Israeli Defence Minister Gallant regarding Israel's planning for Rafah, while it added that if no Israeli delegation visits, the US will keep having conversations with Israeli counterparts.
• US State Department said it is surprising and unfortunate that the Israeli delegation decided not to come after US abstention on the UN resolution, while it added that a full-scale invasion of Rafah would be a mistake and this type of invasion would weaken Israel's security.
• US official said talks on Gaza ceasefire and hostages made progress this weekend, while an Israeli offensive in Rafah does not appear imminent and there is still time to work things out. The official added that the US will look for another opportunity to talk to the Israeli delegation following the cancellation of a visit to Washington this week.

OTHER

• US charged 7 Chinese defendants in an alleged hacking plot targeting US politicians, journalists and academics, while the DoJ alleged the scheme was orchestrated by China's intelligence agency.
• UK PM Sunak said the UK is taking measures to protect itself from China and that China is increasingly assertive. It was also reported that the UK sanctioned two individuals and one company linked to the China state-affiliated group APT31 responsible for targeting UK parliamentarians and the UK Foreign Office is to summon the Chinese ambassador, while a spokesperson for the Chinese embassy in the UK said the so-called cyber attacks by China against the UK are completely fabricated and malicious slanders.
• US imposed fresh Russia-related cyber-security sanctions via the US Treasury Department.
• Russian President Putin said the terrorist attack was committed by radical Islamists, while he added they know who committed the crime and want to know who ordered it. Putin alleged the terrorist attack in Moscow is also part of the Kyiv regime's attacks on Russia and what Russia is interested in is who the attack benefits.

ASIA-PAC

NOTABLE HEADLINES

• China's regulators are pushing banks to increase the pace of approval of new loans to private property developers amid measures designed to bolster homebuyer sentiment, according to Reuters sources.
• China's financial regulator said China will soon roll out a policy on lowering down payments on passenger vehicle loans and that policy is beneficial for supporting auto sales.
• Chinese press noted market rumours that real estate-related documents will be issued soon which will focus on two directions including fully cancelling the restrictive policies in core cities and promoting the implementation of financing coordination mechanisms, according to Securities Times.
• Fitch said China's private property developers face persistent funding constraints and it does not believe China's "three arrows" funding support policy will sufficiently address the property industry's funding shortfall in the current form.

EU/UK

NOTABLE HEADLINES

• BoE's Mann said the last time she spoke her vote was finely balanced.
• ECB Chief Economist Lane is confident that wage growth is slowing and the wage normalisation process is on track, while he is seeing good progress on inflation.
• ECB's Panetta said there is growing consensus within the ECB Governing Council on a possible rate cut.