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Weekend News Round Up - Newsquawk Asia-Pac Market Open

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Sunday, Oct 20, 2024 - 09:50 PM
  • US stocks traded with a mostly positive bias on Friday in which the S&P 500 and the DJIA printed fresh record closes albeit with price action somewhat choppy as earnings remained in the spotlight. In terms of sectors, Communications was the clear outperformer in the aftermath of a strong earnings report from Netflix, while Financials, Consumer Staples and Energy were the only industries in the red with the latter pressured by recent declines in oil prices.
  • Israeli PM Netanyahu said a drone attack which targeted his home in northern Israel was a "grave mistake", while he and his family were not at their house when the drone attack struck on Saturday and there were no casualties.
  • Looking ahead, highlights include New Zealand Credit Card Spending, Malaysian GDP, PBoC Loan Prime Rates, Supply from Australia.

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LOOKING AHEAD

US TRADE

  • US stocks traded with a mostly positive bias on Friday in which the S&P 500 and the DJIA printed fresh record closes albeit with price action somewhat choppy as earnings remained in the spotlight. In terms of sectors, Communications was the clear outperformer in the aftermath of a strong earnings report from Netflix, while Financials, Consumer Staples and Energy were the only industries in the red with the latter pressured by recent declines in oil prices.
  • SPX +0.40% at 5,865, NDX +0.66% at 20,324, DJIA +0.09% at 43,276, RUT -0.21% at 2,276.
  • Click here for a detailed summary.

NOTABLE HEADLINES

  • Fed's Bostic (2024 Voter) said on Friday that they need to move the policy rate because risks shifted and the neutral policy rate is in the 3.00-3.50% range. Furthermore, Bostic suggested there is no rush to get to neutral and will be patient, while he expects to get to 2% inflation near the end of 2025.
  • IAM union said regarding negotiations with Boeing (BA) that the latest proposal includes a 35% general wage increase spread over 4 years and that Boeing workers will receive a one-time ratification bonus of USD 7,000, according to Reuters. It was also reported that Boeing is exploring asset sales that could bring in much-needed cash while shedding non-core underperforming units and reached a deal to offload a small defence subsidiary that makes surveillance equipment for the US military, according to WSJ.

COMMODITIES

  • Shell (SHEL LN) said there was an oil leak from a pipeline at Shell Energy and Chemicals Park in Singapore and it activated emergency response specialists to help manage the situation.
  • Turkmenistan signed a deal with Iraq to supply 20mln cubic metres of gas daily.

GEOPOLITICAL

MIDDLE EAST

  • Israeli PM Netanyahu said a drone attack which targeted his home in northern Israel was a "grave mistake", while he and his family were not at their house when the drone attack struck on Saturday and there were no casualties.
  • Israeli PM Netanyahu spoke with former US President Trump and told him that Israel considers the issues the US administration raises but will make decisions based on its national interests.
  • Israel’s military said it attacked Hezbollah’s intelligence HQ and weapons storage facilities in the southern suburbs of Beirut on Saturday. It was also reported that Israel conducted a fresh raid on the southern suburbs of Beirut on Sunday, as well as targeted the city of Tyre and the towns of Bir al-Salasil and Homine al-Fawqa in southern Lebanon.
  • Israeli military spokesperson had warned on Sunday that they would conduct targeted strikes on sites belonging to Hezbollah’s financial arm across Lebanon and urged Lebanese residents to evacuate areas near those facilities.
  • Iran's Supreme Leader said Hamas leader Sinwar’s death will not halt the axis of resistance and Hamas will live on.
  • Iranian Foreign Minister Araghchi alluded to the US and warned that anyone who knows how and when Israel will attack Iran will be held accountable, according to Reuters.
  • US House Speaker Johnson said on Sunday that there would be a classified briefing related to leaked US intelligence on Israel-Iran, according to Reuters.
  • US Defence Secretary Austin said he would like to see Israel scale back on some of its strikes in and around Beirut, while he raised the issue about UNIFIL security with Israel’s Defence Minister Gallant. Furthermore, Austin reviewed the US defence posture and said he is relieved that PM Netanyahu is safe, while he said he couldn’t confirm reports that North Korean troops are in Russia and readying for combat in the Ukraine war, according to Reuters.
  • UN peacekeeping force UNIFIL said an Israeli army bulldozer demolished a watchtower and fence surrounding the UN site in southern Lebanon on Sunday, according to Reuters.
  • G7 defence ministers reaffirmed the importance of supporting UNIFIL and the Lebanese armed forces in their role of ensuring the stability and security of Lebanon, while they called on Iran to refrain from providing support to Hamas, Hezbollah, Houthis and other non-state actors. Furthermore, they called on Houthis to immediately cease their escalatory measures that increase regional instability and immediately release the vessel Galaxy Leader and its crew.

OTHER

  • Ukrainian President Zelensky thanked countries that 'do not close their eyes' to North Korean involvement in Ukraine's war with Russia and seeks a normal, honest and strong reaction from them, according to Reuters.
  • G7 defence ministers expressed deep concern at China’s support to Russia which is enabling Russia to maintain its illegal war in Ukraine, while the defence ministers said they support Ukraine on its irreversible path to full Euro-Atlantic integration including NATO membership.
  • North Korean Foreign Minister said the new US-led sanctions monitoring team is unlawful, according to KCNA.

ASIA-PAC

NOTABLE HEADLINES

  • China-based DJI sues the US government for adding the drone manufacturer to the list of companies allegedly working with the Chinese military.
  • US Republican Presidential Candidate Trump said he would impose tariffs on China if China went into Taiwan, according to a WSJ interview.

EU/UK

NOTABLE HEADLINES

  • ECB’s Holzmann said on Friday they are on track to getting inflation under control and that the rate decision in December will depend on the data.
  • ECB’s Villeroy said they are on a good way to defeating inflation which is good news and there may be some temporary rebounds in the coming months although this would be due to technical effects, while he added that there will probably be more rate cuts and they will decide depending on the data.
  • S&P affirmed the UK’s rating at AA; Outlook Stable, while Fitch affirmed Sweden at AAA: Outlook Stable, affirmed Sweden at AAA; Outlook Stable and affirmed Italy at BBB: Outlook revised to Positive from Stable.
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