US stocks were choppy amid a lack of drivers ahead of this week's risk events - Newsquawk Asia-Pac Market Open

• US stocks were choppy to start the week amid very thin newsflow and as participants await key events such as FOMC Minutes, Nvidia (NVDA) earnings and UK inflation data due on Wednesday followed by US PMIs on Thursday. US indices ended the day somewhat mixed with the NDX the biggest gainer amid tech strength as Nvidia shares were lifted ahead of earnings and following a couple of PT raises at different brokerages, while the DJIA underperformed as it pulled back from a fresh record high to beneath the 40,000 milestone.
• USD was flat with the DXY kept within a tight range of 104.39-104.65 amid light catalysts and as participants await pivotal risk events including FOMC Minutes and Nvidia earnings, while there was a slew of Fedspeak (Mester, Daly, Jefferson, Barr, Bostic), albeit little new was said, with plenty more scheduled on Tuesday.
• Looking ahead, highlights include Australian Westpac Consumer Sentiment, New Zealand Credit Card Spending, RBA Minutes, Speech from Fed's Bostic.

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LOOKING AHEAD

• Highlights include Australian Westpac Consumer Sentiment, New Zealand Credit Card Spending, RBA Minutes, Speech from Fed's Bostic.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks were choppy to start the week amid very thin newsflow and as participants await key events such as FOMC Minutes, Nvidia (NVDA) earnings and UK inflation data due on Wednesday followed by US PMIs on Thursday. US indices ended the day somewhat mixed with the NDX the biggest gainer amid tech strength as Nvidia shares were lifted ahead of earnings on Wednesday and following a couple of PT raises at different brokerages, while the DJIA underperformed as it pulled back from a fresh record high to beneath the 40,000 milestone.
• SPX +0.09% at 5,308, NDX +0.69% at 18,674, DJIA -0.50% at 39,807, RUT +0.32% at 2,102.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed Vice Chair for Supervision Barr (voter) said Q1 inflation is disappointing and did not provide the confidence needed to ease monetary policy, while he added the Fed will need to allow tight policy further time to continue to do its work and the Fed is in a good position to hold steady and watch the economy.
• Fed's Bostic (voter) said nothing has changed when asked about his recent views and he wants to be certain inflation is on course for 2%, while he reiterated that he continues to see inflation fall this year and that the is Fed open to all possibilities and many economic scenarios.
• Fed's Daly (voter) said she is not yet confident that inflation is coming down sustainably to 2% and does not see any evidence of a need to raise rates, while she expects there will be an improvement in shelter inflation but won't be rapid.
• Fed's Jefferson (voter) said the policy rate is in restrictive territory and they continue to see the labour market come into better balance and inflation decline, though nowhere near as quickly as would have liked. Jefferson also said it is important to not focus on one data point and it is too early to say April CPI is the start of a new trend, but it is a good sign.
• Fed's Mester (voter, retires in June) thinks monetary policy is restrictive and inflation progress stalled in the first three months. Mester added it is too soon to tell what path inflation is on and they need to gather more evidence on the inflation path to determine it is sustainably headed to 2%, while she noted that inflation risks are tilted to the upside.
• Apple (AAPL) reportedly launched an aggressive discounting campaign on its official Tmall site in China, offering discounts of up to USD 318 on select iPhone models, according to Reuters

FX

• USD was flat with the DXY kept within a tight range of 104.39-104.65 amid light catalysts and as participants await pivotal risk events including FOMC Minutes and Nvidia earnings, while there was a slew of Fedspeak (Mester, Daly, Jefferson, Barr, Bostic), albeit little new was said, with plenty more scheduled on Tuesday.
• EUR marginally softened in relatively quiet trade and as comments from ECB's Kazaks continued to signal a June rate cut.
• GBP traded little changed amid a light calendar to start the week in which GBP/USD just about retained the 1.2700 status.
• JPY resumed its weakening trend and was among the underperformers with USD/JPY back above the 156.00 level.

FIXED INCOME

• Treasuries were lower and curve steepened in catalyst light trade ahead of the week’s major risk events.

COMMODITIES

• Oil prices were choppy and finished slightly lower at the settlement amid light newsflow and no major geopolitical escalation.
• Russian President Putin said Russian oil output has declined year to date to 195.7mln tons and that is due to the OPEC+ deal, while natgas output in Jan-April increased to 246.4BCM, according to Interfax.
• Russia’s government said it suspended the gasoline export ban until June 30th.

GEOPOLITICAL

MIDDLE EAST

• Israeli Defence Minister Gallant told US advisor Sullivan that they are committed to broadening the Rafah ground operation.
• Israeli National Security Minister Ben Gvir proposed that Israel invade Lebanon to destroy Hezbollah, according to Sky News Arabia.

OTHER

• Top US general said they are confident Ukraine has not used long-range US weaponry inside Russia.

ASIA-PAC

NOTABLE HEADLINES

• China's Foreign Minister Wang Yi with Russia's Lavrov said that China and Russia should increase mutual support and consolidate cooperation, as well as safeguard the security and stability of the common neighbourhood.
• China's gaming regulator has approved 96 online games in May.

EU/UK

NOTABLE HEADLINES

• BoE's Broadbent said the direct effect on inflation of the pandemic and the war have now faded, while they are now left with the more persistent, second-round effects of that earlier surge on domestic inflation and it is possible the Bank Rate could be cut sometime over the summer. Broadbent also said the experience of the past two/three years has made MPC members wary about cutting but noted signs of inflation pressures easing is reassuring and said it is a matter of individual opinion on the MPC regarding how much evidence is needed for a rate cut.
• ECB's Kazaks said the rate-cutting process must be cautious and gradual, while he will look at the data again after June's meeting and said the June meeting is quite likely to be the start of ECB rate cuts.