Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks were bid on Friday in which the SPX briefly rose above 6k before paring into the closing bell with advances led by Utilities, Real Estate and Consumer Staples although the Nasdaq was the relative underperformer as Tech and Communication lagged. Price action in markets was primarily categorised by post-election trade as participants continued to react to the Trump win and the dollar resumed to the upside after weakness the day before although T-notes continued to flatten after the steepening seen on Trump's victory.
• Chinese inflation data printed softer than expected and factory gate prices showed a steeper decline.
• Edison Research projected Republicans won another seat in the US House bringing their total to 213, while Democrats have 204 seats with 218 needed for control.
• Bitcoin briefly surged above the USD 80,000 level on Sunday to print a new record high.
• Looking ahead, highlights include Japanese Current Account, New Zealand Inflation Expectations, BoJ Summary of Opinions, Supply from Japan.

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LOOKING AHEAD

• Highlights include Japanese Current Account, New Zealand Inflation Expectations, BoJ Summary of Opinions, Supply from Japan.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks were bid on Friday in which the SPX briefly rose above 6k before paring into the closing bell with advances led by Utilities, Real Estate and Consumer Staples although the Nasdaq was the relative underperformer as Tech and Communication lagged. Price action in markets was primarily categorised by post-election trade as participants continued to react to the Trump win and the dollar resumed to the upside after weakness the day before although T-notes continued to flatten after the steepening seen on Trump's victory.
• SPX +0.38% at 5,996, NDX +0.07% at 21,117,DJIA +0.59% at 43,989, RUT +0.71% at 2,400.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed’s Kashkari (2026 voter) said if growth and productivity are strong, the Fed may not cut as much, while he reiterated that housing inflation will take a while to come down all the way and they have made progress but want to get the job done on inflation. Kashkari also stated that the Fed wants to have confidence inflation will go all the way back to 2% and need to see more evidence before deciding on another cut.
• Edison Research projected Republicans won another seat in the US House bringing their total to 213, while Democrats have 204 seats with 218 needed for control.

COMMODITIES

• BSEE estimated that approximately 27.59% of the current daily oil production and 16.67% of the current daily natural gas production in the Gulf of Mexico has been shut-in due to Tropical Storm Rafael.

GEOPOLITICAL

MIDDLE EAST

• Israel called upon Israelis not to attend cultural and sports events abroad in the week ahead, according to a statement from the PM’s office.
• Israel conducted a strike on a residential building near Damascus which resulted in casualties, according to the Syrian state news agency.
• US National Security Adviser Sullivan said the US will make a judgement this week about the progress Israel made over the Blinken/Austin letter on humanitarian aid to Gaza. Sullivan also stated that President Biden will go through the top US foreign policy and domestic issues with President-elect Trump on Wednesday and Biden will make the case to Congress that they need ongoing resources for Ukraine beyond the end of his term.
• Qatar’s Foreign Ministry said its mediation efforts between Israel and Hamas are currently on hold and reports it is withdrawing from the Gaza ceasefire mediation are not accurate, while it said it will resume mediating in ceasefire talks when there is enough seriousness to end the brutal war.
• Iranian Foreign Minister Araqchi said a new scenario was fabricated after the US charged an Iranian man in the plot to kill President-elect Trump, while he said Iran is not after nuclear weapons and confidence building is needed from both sides.
• IRGC's Khatam al-Anbiya Headquarters deputy commander said Iran provides Hezbollah with ammunition and is not afraid of declaring it, while he added that Hezbollah has also publicly announced its affiliation with Iran, according to Iran International English.
• IAEA Director General Grossi will travel to Tehran this week for high-level meetings with the Iranian government.
• Iraqi armed factions announce attack on a "vital target" in southern Israel with marches, according to Sky News Arabia.
• US-British aggression was reported on Yemen's capital Sanaa and the Amran governorate, according to Al Masirah TV.
• Two personnel from Saudi-led coalition forces were killed in an attack by a Yemeni Defence Ministry employee in Yemen’s Seiyun.

OTHER

• US President-elect Trump spoke on the phone with Russian President Putin on Thursday and discussed the war in Ukraine, while Trump urged Putin not to escalate the war in Ukraine, according to The Washington Post.
• Russian Foreign Ministry said on Saturday that there are no grounds for talking about resuming dialogue with the US on strategic stability and arms, while it added that US President-elect Trump’s promises to resolve the crisis in Ukraine fast are nothing more than rhetoric.
• Russian President Putin signed the law on ratification of the strategic partnership with North Korea, according to TASS.
• Ukrainian top military commander Syrski told a senior US general of reports regarding North Korean troops preparing to take part in combat alongside Russian forces, as well as noted that the front-line situation remains difficult and is showing signs of escalation.
• Ukrainian drones hit a chemical producer in Russia’s Tula region overnight.
• Chinese President Xi signed an order of regulations to guarantee military equipment, effective from December 1st.
• China’s Foreign Ministry said China firmly opposes the Philippines’ Marine Zones Act which severely infringes on China’s territorial sovereignty and maritime rights in the South China Sea, while China’s Coast Guard said the Philippines has frequently sent military police, civilian vessels and aircraft to intrude into the air and sea space near Huangyan Island, which is also known as Scarborough Shoal.
• Philippines aims to buy a US missile launcher in a move likely to anger China, according to FT.

CRYPTO

• Bitcoin briefly surged above the USD 80,000 level on Sunday to print a new record high.

ASIA-PAC

NOTABLE HEADLINES

• China International Import Expo saw a 2% Y/Y increase in intended transaction value to USD 80bln.
• China and Peru will sign a deal to strengthen a Free Trade Agreement with the improved FTA to increase commerce by at least 50%, while President Xi is to travel to Peru with 400 business people interested in investing in infrastructure and technology.
• TSMC (2330 TT) was reportedly ordered to stop shipments to China of advanced chips used for AI applications starting November 11th.

DATA RECAP

• Chinese CPI MM (Oct) -0.3% vs. Exp. -0.1% (Prev. 0.0%)
• Chinese CPI YY (Oct) 0.3% vs. Exp. 0.4% (Prev. 0.4%)
• Chinese PPI YY (Oct) -2.9% vs. Exp. -2.5% (Prev. -2.8%)

EU/UK

NOTABLE HEADLINES

• UK Chancellor Reeves will set out the government’s plans to stimulate economic growth through the principles of stability, investment and reform, as well as hail the benefits of free trade amid impending US protectionism during her first Mansion House address on Thursday, according to FT.
• German Chancellor Scholz said he wouldn't have a problem with a vote of confidence before Christmas and that there is a good chance he will win another mandate to form another government, according to CGTN Europe.
• ECB's Holzmann said a rate cut is possible in December as things look at the moment and there is nothing at the moment that would argue against that but that does not mean it will automatically happen, while he added they do not have the latest forecasts and data which they will get in December and will decide on that basis.
• Fitch affirmed Spain at A-; Outlook revised to Positive from Stable, while it affirmed Poland at A; Outlook Stable and affirmed Lithuania at A; Outlook Stable. It was also reported that Moody’s upgraded Croatia to A3; Outlook changed to Stable from Positive.