US stocks were choppy amid higher yields and as markets braced for the big tech earnings - Newsquawk Asia-Pac Market Open

• US stocks finished mixed on what was a choppy session although the Nasdaq 100 outperformed after a short squeeze on Tesla (+11%) post-earnings as investors await more big tech earnings reports. Furthermore, macro newsflow was on the light side and durable goods orders were varied which garnered little reaction, while the German Ifo survey came in on the hot side and contributed to a Bund-led sell-off.
• USD eked mild gains amid mixed durable goods data which beat on the headline although the ex-transport measure was soft, while yields rose throughout the session to also support the buck but was not enough to see DXY reclaim 106.00.
• Looking ahead, highlights include South Korean GDP, Malaysian CPI, Japanese Leading Index, Holiday Closures in Australia & New Zealand.

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LOOKING AHEAD

• Highlights include South Korean GDP, Malaysian CPI, Japanese Leading Index, Holiday Closures in Australia & New Zealand.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks finished mixed on what was a choppy session although the Nasdaq 100 outperformed after a short squeeze on Tesla (+11%) post-earnings as investors await more big tech earnings reports. Furthermore, macro newsflow was on the light side and durable goods orders were varied which garnered little reaction, while the German Ifo survey came in on the hot side and contributed to a Bund-led sell-off.
• SPX +0.02% at 5,071, NDX +0.32% at 17,527, DJI -0.11% at 38,461, RUT -0.36% at 1,995.
• Click here for a detailed summary.

NOTABLE HEADLINES/EARNINGS

• Meta Platforms Inc (META) Q1 2024 (USD): EPS 4.71 (exp. 4.32), Revenue 36.46bln (exp. 36.16bln), Q2 24 revenue view 36.5-39bln (exp. 38.38bln), FY24 capex view 35-40bln (exp. 34.73bln), also expects capex to increase in FY25 (exp. 37.73bln).
• International Business Machines Corp (IBM) Q1 2024 (USD): Adj. EPS 1.68 (exp. 1.60), Revenue 14.46bln (exp. 14.55bln).
• Ford Motor Co (F) Q1 2024 (USD): Adj. EPS 0.49 (exp. 0.42), Revenue 42.8bln (exp. 40.1bln).

DATA RECAP

• US Durable Goods (Mar) 2.6% vs. Exp. 2.5% (Prev. 1.3%, Rev. 0.7%)

FX

• USD eked mild gains amid mixed durable goods data which beat on the headline although the ex-transport measure was soft, while yields rose throughout the session to also support the buck but was not enough to see DXY reclaim 106.00.
• EUR was relatively flat against the dollar with price action choppy which saw EUR/USD trade on both sides of the 1.0700 level.
• GBP marginally strengthened in quiet trade but was confined within tight parameters.
• JPY continued its weakening trend and USD/JPY climbed to the 155.00 handle to print fresh multi-decade highs which raises intervention speculation, while there were recent comments from Japan's ruling LDP secretary-general that the ruling party is not yet in active discussion on what yen levels would be deemed worth intervening, although a slide towards 160 to the dollar could spur policymakers to act.
• BoC Minutes stated they agreed that rates would most likely only come down gradually and given the risks to the inflation outlook, the council was split on the timing of a possible cut.

FIXED INCOME

• Treasuries bear-steepened gradually through the session and unwound the prior day's spike amid stronger economic data.

COMMODITIES

• Oil prices were lower with prices subdued throughout the day despite bullish inventory data.
• US EIA Weekly Crude Stocks -6.4M vs. Exp. 1.2M (Prev. 2.7M)
• Russian Energy Ministry said fuel output in April is to compensate for lost volumes in March, according to RIA. It was also reported that Russia does not rule out its LNG exports stagnating through to 2027 at 38.6mln metric tons per year, according to Reuters citing a document.
• Kazakhstan is to gradually compensate for over-fulfilled Q1 output volumes under OPEC+ this year, according to the Energy Ministry.
• Iraq signed a deal with Ukraine Ukrezemresurs to develop the Akkas gas field, according to a statement.
• Dalian Commodity Exchange said trading volume of opening long and short positions on some iron ore futures contracts of any non-futures company member or client shall not exceed 500 lots from April 26th.

GEOPOLITICAL

MIDDLE EAST

• Israel is moving ahead with an operation to target Hamas in Rafah, while the Israeli military is poised to launch the Rafah operation immediately and is awaiting approval from the government, according to a government spokesperson cited by Reuters.
• Top Israeli and Egyptian officials secretly met in Cairo today to discuss a possible IDF invasion of Rafah, with Egyptian officials concerned it would lead to tens of thousands of displaced Palestinians entering Egypt, according to Axios. It was also reported that Egypt is intensifying contacts with all parties to find a way to a ceasefire in the Gaza Strip, according to Sky News Arabia citing an Egyptian source.
• White House National Security Adviser said the US is still in talks with Israelis regarding Rafah and expects in-person Rafah talks to take place relatively soon.
• Israeli Defence Minister said Israel is currently carrying out an "offensive operation" in southern Lebanon, according to Sky News Arabia.
• Yemeni sources said Houthis launched a ballistic missile towards the sea from central Yemen, according to Sky News Arabia.
• Yemen's Houthis said they targeted the MSC Veracruz Israeli ship in the Indian Ocean, Maersk Yorktown and a US destroyer in the Gulf of Aden.

OTHER

• Russia's Kremlin commented on US supplies of ATACMS to Ukraine in which it stated that the longer the range of Western weapons supplied, the further Russia will have to move the border of the buffer zone.
• US official said the US quietly slipped long-range ATACMS missiles to Ukraine in the March aid package, which were fired by Ukraine against a Russian target last week.
• European Commission is expected to propose direct sanctions on ships delivering North Korean military equipment to Russia and on tankers flouting the G7 price cap on Russian oil, according to Reuters sources.
• China warned that US military support for Taiwan increases the risk of conflict, according to Sky News Arabia.

ASIA-PAC

NOTABLE HEADLINES

• China reportedly told brokers to limit exposure to "snowball" derivatives, according to Bloomberg.
• US President Biden signed the TikTok divestment-or-ban bill into law which requires ByteDance to divest its US operations within 270 days with the option of a one-time 90-day extension if deemed the Co. is close to a divestiture. It was separately reported that TikTok’s CEO expects to prevail in courts over divestment legislation and said they aren't going anywhere.

EU/UK

NOTABLE HEADLINES

• ECB's Nagel said a June rate cut will not necessarily be followed by a series of rate cuts and he is not fully convinced that inflation will return to the target in a timely sustained manner, while he noted services inflation remains high and driven by continued strong wage growth.
• Spanish PM Sanchez announced on X that he is suspending public duties to reflect on his future.
• Germany’s government upgraded their 2024 GDP forecast to 0.3% (prev. 0.2%) and expects 1.0% GDP growth in 2025, while it sees inflation at 2.4% (prev. 2.8%) and noted slight signs of an economic upturn and that prices have fallen faster than many expected.
• German Ifo Institute president is more optimistic about the German economy in Q2, while it was noted that manufacturing companies are lacking orders but there is positive consumption, according to Bloomberg. Furthermore, it was stated that the improving worldwide economy is not reaching Germany and that German growth will be weak but not negative.

DATA RECAP

• German Ifo Expectations New (Apr) 89.9 vs. Exp. 88.7 (Prev. 87.5, Rev. 87.7)
• German Ifo Business Climate New (Apr) 89.4 vs. Exp. 88.8 (Prev. 87.8, Rev. 87.9)
• German Ifo Curr Conditions New (Apr) 88.9 vs. Exp. 88.7 (Prev. 88.1)