US stocks traded mixed as participants digested earnings ahead of upcoming risk events - Newsquawk Asia-Pac Market Open

• US stocks were mixed in which the SPX and NDX gradually gained throughout the US session, while the DJIA and RUT lagged as markets digested earnings ahead of upcoming risk events, while Chinese stocks performed well on a slew of support measures.
• USD was firmer and the DXY rose above its 200DMA (103.46) with the help from upside in yields, while the data was light as Richmond Fed the only major US data release in which the Composite Index weakened.
• Looking ahead, highlights include Australian Flash PMIs & Leading Index, Japanese Trade Data, Supply from Australia.

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LOOKING AHEAD

• Highlights include Australian Flash PMIs & Leading Index, Japanese Trade Data, Supply from Australia.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks were mixed in which the SPX and NDX gradually gained throughout the US session, while the DJIA and RUT lagged as markets digested earnings ahead of upcoming risk events, while Chinese stocks performed well on a slew of support measures.
• SPX +0.29% at 4,864, NDX +0.43% at 17,404, DJIA -0.25% at 37,905, RUT -0.36% at 1,976.
• Click here for a detailed summary.

NOTABLE HEADLINES

• US House Speaker Johnson hasn’t made up his mind about whether to support the bipartisan tax package approved by a key committee last week amid "grumbling" from some of his members, according to Punchbowl sources.
• US Senate Majority Leader Schumer said there are still moving pieces, but he hopes to finalise the supplemental funding deal as soon as possible.

DATA RECAP

• US Richmond Fed Composite Index (Jan) -15.0 (Prev. -11.0)
• US Richmond Fed Manufacturing Shipments (Jan) -15.0 (Prev. -17.0)
• US Richmond Fed Services Index (Jan) 4.0 (Prev. 0.0)

FX

• USD was firmer and the DXY rose above its 200DMA (103.46) with the help from upside in yields, while the data was light as Richmond Fed the only major US data release in which the Composite Index weakened.
• EUR weakened against the firmer dollar and returned to below the 1.0900 handle.
• GBP marginally softened and gave back the 1.2700 status but moved off intraday lows.
• JPY failed to sustain the initial gains seen following BoJ Governor Ueda's hawkish-leaning press conference where he said will certainly foresee further rate hikes when exiting negative interest rate policy.
• SNB Chair Jordan expects some inflationary pressure from rents, while he added that nominal appreciation of the Franc has lowered inflation and is hurting Swiss companies.

FIXED INCOME

• Treasuries bear steepened with pressure in the aftermath of a more hawkish press conference from BoJ Governor Ueda and with weakness extending ahead of 2yr supply which ultimately came in on the screws.

COMMODITIES

• Oil prices finished lower with trade choppy amid a firmer dollar and light oil-specific newsflow.
• US Energy Inventory Data (bbls): Crude -6.7mln (exp. -2.2mln), Gasoline +7.2mln (exp. +2.3mln), Distillates -0.2mln (exp. +0.3mln), Cushing -2mln.
• Dubai set the official crude differential for April at parity to DME Oman.
• Exports of four key Nigerian crude oil grades to jump to 750k BPD in March (657k BPD M/M), according to Reuters citing the programme.

GEOPOLITICAL

• White House's Kirby said US Middle East Envoy McGurk is in Cairo today and is in the region to focus on another hostage deal and humanitarian pause, while he added there are active conversations on hostages.
• A one-month Gaza truce is the focus of intensive mediation efforts by Qatar, US and Egypt, according to Reuters citing sources.
• Pentagon was aware of reports on a new attack on the Al Asad airbase in Iraq, but couldn’t confirm at the time. It was later reported that the US military conducted strikes on Iran-backed militant facilities in western Iraq.
• Turkish parliament approved Sweden's accession to NATO.

ASIA-PAC

NOTABLE HEADLINES

• PBoC leaders will hold a press conference on Wednesday at 07:00GMT/02:00EST to introduce the implementation of the CEWC decisions and financial support for the real economy, according to reports.
• China’s securities regulator said they will make great efforts to cultivate a long-term and stable investment force, enrich policy tools to deal with market fluctuations and will do a good job of risk hedging in a timely manner and keep the bottom line on risks. They will also prevent the introduction of policy measures that are not conducive to capital market expectations and will stabilise market expectations, as well as make greater efforts to resolve real estate risks and local debt risks in a steady and orderly manner. Furthermore, they will strengthen monitoring of the trading behaviour of key investors and strictly crack down on abnormal trading, stock price manipulation and other violations.
• BoJ Governor Ueda said Japan's economy is to gradually pick up in the coming months and the likelihood of achieving 2% inflation is rising gradually. Ueda also noted the number of firms that have decided to hike wages at this year's Spring wage talks is higher than this time last year and stated that even if real wages are negative and the outlook is positive, a policy change is possible. Ueda said they will examine whether to continue massive monetary easing measures including negative interest rate policy when the BoJ judges the achievement of 2% inflation is in sight although cannot quantify how much closer the BoJ is to exiting negative interest rate policy, while he added they will certainly foresee further rate hikes when exiting negative interest rate policy but also noted that accommodative conditions will continue for a while. Furthermore, Ueda said they will have more data at the April policy meeting compared to March and will consider whether to continue buying ETFs when the time comes to exit stimulus policy.

EU/UK

NOTABLE HEADLINES

• German Finance Minister Lindner said Germany needs an "economic turnaround" this year and that it will not work with more debt.
• ECB Bank Lending Survey showed credit standards tightened in Q4 for firms and households, while further tightening is expected in Q1.

DATA RECAP

• EU Consumer Confidence Flash (Jan) -16.1 vs. Exp. -14.3 (Prev. -15.0)