Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks weakened on Friday and extended on last week's declines for the worst weekly performance in the S&P 500 and Nasdaq since March 2023 and June 2022, respectively with the major indices weighed on by the souring risk sentiment despite initial gains on the US jobs report which missed forecasts but ultimately failed to decisively guide towards a greater magnitude of the September FOMC rate cut.
A New York Times survey showed former President Trump ahead of VP Harris at 48% vs 47% among likely voters nationally which was the first major poll to show a drop in the support for Harris, while it lowered Harris’s lead in the overall average of polls to 2.5% and just 0.3% in the key swing state of Pennsylvania, according to the Telegraph.
Looking ahead, highlights include Japanese Revised Q2 GDP, Chinese CPI & PPI.

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US TRADE

US stocks weakened on Friday and extended on last week's declines which was the worst weekly performance in the S&P 500 and Nasdaq since March 2023 and June 2022, respectively with the major indices weighed on by the souring risk sentiment despite initial gains on the US jobs report which missed forecasts but ultimately failed to decisively guide towards a greater magnitude of the September FOMC rate cut.
SPX -1.7% at 5,408, NDX -2.7% at 18,421, DJIA -1.0% at 40,345, RUT -1.9% at 2,091.
Click here for a detailed summary.

NOTABLE HEADLINES

Fed's Goolsbee (2025 Voter) said on Friday that the employment data is a continuation of what they've been seeing and the jobs market is slowing down. Waller also noted that it raises some serious questions about this meeting and the next several months, while he suggested they have to make sure not to make the labour market turn into something worse and he is concerned odds of a recession might be rising if they maintain this level of restrictiveness.
A New York Times survey showed former President Trump ahead of VP Harris at 48% vs 47% among likely voters nationally which was the first major poll to show a drop in the support for Harris, while it lowered Harris’s lead in the overall average of polls to 2.5% and just 0.3% in the key swing state of Pennsylvania, according to the Telegraph.
Former US President Trump threatened a 100% tariff for countries that turn away from the dollar, according to Bloomberg.
US is to propose bank capital rule revisions as soon as this month, according to Bloomberg.
Apple’s (AAPL) new iPhone will use Arm’s (ARM) next-gen chip technology for AI, according to FT.
Boeing (BA) said it reached a tentative agreement with the International Association of Machinists and Aerospace Workers and district lodges, according to Reuters.

DATA RECAP

US Non-Farm Payrolls (Aug) 142.0k vs. Exp. 160.0k (Prev. 114.0k, Rev. 89k); two month net revisions -86k (prev. -29k)
US Unemployment Rate (Aug) 4.2% vs. Exp. 4.2% (Prev. 4.3%)
US Average Earnings YY (Aug) 3.8% vs. Exp. 3.7% (Prev. 3.6%)

Iraq set October Basrah medium crude OSP to Asia at a discount of USD 0.50/bbl vs Oman/Dubai average, according to SOMO.
Kuwait’s Emir accepted the resignation of Deputy PM and Oil Minister Al-Atiqi, while Kuwait’s Minister of Finance Al-Fassam was appointed as the acting Minister of Oil, according to Reuters.
NHC said a system in the Gulf of Mexico is likely to strengthen from Tuesday, increasing the risk of a life-threatening storm surge and damaging winds along the upper Texas and Louisiana coasts by mid-week, according to Reuters.
Goldman Sachs still expects three months of OPEC+ production increases but pushed out the start date to December from October, while it maintained its USD 70-85/bbl Brent forecast range and December forecast of USD 74/bbl. Furthermore, it still sees risk to its forecast range skewed to the downside given high spare capacity, risks to demand from weakness in China and potential trade tensions, according to Reuters.

MIDDLE EAST

Israel conducted a strike which killed three Lebanese paramedics in the southern Lebanese town of Faroun, while Hezbollah launched a “squadron of missiles” targeting an Israeli military headquarters in response which resulted in casualties, according to Reuters.
Israeli army said three Israeli civilians were killed in a shooting attack on the Jordan border, whileIsrael closed its land border crossings with Jordan after the deadly attack at the Allenby Bridge crossing, according to Israel’s airport authority, according to Reuters.
Syrian media reported explosions in the city of Tartous and that Israeli aircraft conducted shelling on the Damascus countryside.
Yemen’s Houthis claimed they shot down a US MQ-9 drone conducting hostile acts over the Marib governorate’s airspace.
UK MI6 spy agency head Moore said he suspects that Iran will try to get revenge for the death of Hamas leader Haniyeh, while Moore also commented that it is too early to say how long Ukraine can hang on in Kursk.

OTHER

Iran officially denied reports that it supplied Russia with ballistic missiles to aid its war in Ukraine, although an Iranian MP admitted to a deal of sending ballistic missiles to Russian forces fighting in Ukraine in exchange for soybeans and wheat, according to The Telegraph. Furthermore, Ukraine expressed concern over reports of a possible Iranian missile transfer to Russia and called on the international community to increase pressure on Tehran and Moscow, according to Reuters.
Russian forces took control of Novohrodivka in eastern Ukraine, according to RIA.
Italian PM Meloni said what must not happen is to think that the Ukrainian conflict can be resolved by abandoning Ukraine to its fate and that the decision to support Ukraine is aligned with Italy’s national interest which will never change. Meloni added that the Western World’s decision to support Ukraine after Russia’s invasion led to the current stalemate which is the pre-condition for peace talks.
CIA Director Burns said there was a genuine risk of the potential use of tactical nuclear weapons in the fall of 2022, while Burns added that he doesn’t see any evidence today that Russian President Putin’s grip on power is weakening, according to Reuters.
North Korean Leader Kim Jong Un emphasised the importance of strengthening naval power, according to KCNA.

NOTABLE HEADLINES

US Treasury Secretary Yellen said she would welcome a visit to the US by her Chinese counterpart and that she may return to China, while she added the US relationship with China needs to be prioritised and nurtured.
Typhoon Yagi killed 21 people and wreaked havoc on infrastructure and factories in Vietnam.

DATA RECAP

NOTABLE HEADLINES

UK PM Starmer defended the decision to scrap winter fuel payments for 10mln pensioners to shore up public finances and said his government must be prepared to be unpopular, according to FT.
Italy expects 2025 GDP growth of at least 1.2%, according to a Treasury junior minister cited by Reuters.
European banks are on course for zero growth in mortgage lending for the first time in a decade this year due to high interest rates but a recovery is expected from next year, according to FT.