US stocks were choppy and finished marginally lower in catalyst-light trade - Newsquawk Asia-Pac Market Open

US stocks were choppy and finished lower amid light catalysts ahead of looming key events, while price action was the main story as Gold and Bitcoin both surged to new recent peaks as momentum and euphoria took over, while tech was mixed as AI names rallied including Nvidia although other mega-cap names struggled with Apple pressured following a USD 1.8bln fine by the EU.
USD was ultimately flat in the absence of any US data releases and some calmness ahead of this week's busy schedule of events, while the main "highlight" was comments from Fed's Bostic (voter) who said when rate cuts start they would not be back to back but will likely be followed by a pause and he still sees two rate cuts this year with the first cut to occur in Q3.
Looking ahead, highlights include South Korean GDP, Tokyo CPI, Australian Current Account & Net Exports Contribution, Chinese Caixin Services PMI, Singapore Retail Sales, China's National People's Congress Convenes, Speech from BoJ Governor Ueda, Supply from Japan.

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Highlights include South Korean GDP, Tokyo CPI, Australian Current Account & Net Exports Contribution, Chinese Caixin Services PMI, Singapore Retail Sales, China's National People's Congress Convenes, Speech from BoJ Governor Ueda, Supply from Japan.
Click here for the Newsquawk Week Ahead.

US TRADE

US stocks were choppy and finished lower amid light catalysts ahead of looming key events, while price action was the main story as Gold and Bitcoin both surged to new recent peaks as momentum and euphoria took over, while tech was mixed as AI names rallied including Nvidia although other mega-cap names struggled with Apple pressured following a USD 1.8bln fine by the EU.
SPX -0.12% at 5,131, NDX -0.42% at 18,226, DJI -0.25% at 38,990, RUT -0.10% at 2,074.
Click here for a detailed summary.

NOTABLE HEADLINES

Fed's Bostic (2024 voter) said he would not anticipate that cuts would be "back to back" and will depend on the response, while he added that a third quarter cut is likely to be followed by a pause and he still expects two 25bps rate cuts this year. Bostic said inflation is on track to slowly return to the 2% target but it is too early to claim victory and they need to see more progress and gain confidence in disinflation before reducing the policy interest rate. Furthermore, he said the strength of the economy and job market means the Fed has the luxury of proceeding without urgency.
White House plans to announce a new federal task force focused on easing health care costs, according to Politico.

USD was ultimately flat in the absence of any US data releases and some calmness ahead of this week's busy schedule of events, while the main "highlight" was comments from Fed's Bostic (voter) who said when rate cuts start they would not be back to back but will likely be followed by a pause and he still sees two rate cuts this year with the first cut to occur in Q3.
EUR edged slight gains against the dollar to trade around the 1.0850 level, while data showed the EU Sentix Index topped estimates and improved for a fifth consecutive month but remained in negative territory.
GBP outperformed and briefly tested 1.2700 to the upside ahead of Wednesday's Budget announcement.
JPY weakened against the dollar with USD/JPY prodding above 150.00 on rising US yields.

Treasuries bear-flattened in a catalyst-light session ahead of this week's risk events.

Oil prices were lower after last week's breakout waned despite an extension of OPEC+ output cuts.
US considers selling its 1mln barrel Northeast gasoline reserve in 2024, according to Reuters citing a draft text of a funding bill released on Sunday.
Iran is opening a new phase at its southern oilfields with output set to rise to 100k BPD from 40k BPD as soon as the second phase of the oilfields is operational, according to IRNA.
Canada and Australia will enhance cooperation on critical minerals extraction, processing and refining.

MIDDLE EAST

Israeli Security Minister Itamar Ben-Gvir called for a cessation of exchange negotiations and a transition to escalate fighting, according to Al Arabiya.
Israel Broadcasting Corporation quoted an official source who was optimistic about reaching a truce agreement by Ramadan, according to Sky News Arabia.
Hamas said in a message they will be flexible on the issue of the number of prisoners if Israel is flexible on the issue of returning Palestinians to northern Gaza, according to Axios's Ravid on X.
Senior Hamas sources said discussions in Cairo are positive but the ball is still in the Israeli court, according to AWP. It was later reported that a senior Hamas source said it is clear there is still no real progress in the negotiations on a truce in Gaza, according to Walla News' Elster.
White House said a temporary ceasefire is essential to a hostage deal and the US calls on Hamas to accept the terms on the table right now.
US Envoy Hochstein said a truce in Gaza will not necessarily extend to Lebanon automatically.
US military attempts to stop attacks on Red Sea shipping are struggling as there is insufficient intelligence on Houthi militants' arsenal and full capabilities, according to US officials cited by FT.
UKMTO received reports of an incident 91NM southeast of Aden, Yemen. It was also reported that Yemen's Houthis said they targeted Israeli ship MSC Sky in the Arabian Sea.

OTHER

Russian Security Council Deputy Chair Medvedev said US special forces and advisors are waging war against Russia and relations are now worse than the 1962 Cuban missile crisis, according to TASS.
Belarusian President Lukashenko signed a decree on switching government agencies and other organizations to wartime operational conditions, according to BelTA citing sources.
A military object reportedly fell in Polish territory, while Polish police said that the object that fell was a weather balloon.

NOTABLE HEADLINES

China's MOFCOM said they are deeply concerned about the US National Security review of Chinese vehicles which have connected car technology and China will take strong measures when necessary.

NOTABLE HEADLINES

UK Chancellor Hunt is believed by some government insiders to be preparing a 2p cut to the basic rate of income tax for the budget announcement on Wednesday, while the tax cut would cost GBP 14bln per year but could be funded by cutting GBP 5bln from future public spending plans, while Hunt is also expected to extend the 5p-a-litre fuel duty cut for a further one year and again scrap an inflation-linked rise in the levy, according to FT.
German train drivers' union chief said further strikes will follow after talks failed and is calling on members to take action on March 7th-8th.

DATA RECAP