Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks traded mixed on Friday following the latest PCE inflation data which on the surface was relatively in line with expectations although the Core services ex. housing print accelerated in December while Personal Income and Consumer Spending were strong, showing consumer demand is still high. Nonetheless, the major indices finished relatively flat aside from the NDX which underperformed due to tech weakness after weak earning reports from INTC, KLAC and FICO.
• Three US troops were killed and dozens were injured from an aerial drone attack on US forces in northeastern Jordan near the Syrian border which US President Biden said was carried out by radical Iran-backed militant groups operating in Syria and Iraq. It was later reported that President Biden said the US will respond to the attack.
• White House said US National Security Adviser Sullivan and Chinese Foreign Minister Wang Yi held candid, substantive and constructive discussions on global and regional issues including Ukraine, the Middle East, North Korea, South China Sea and Burma, while Sullivan stressed that although the countries are in competition, both sides need to prevent it from veering into conflict or confrontation. Furthermore, a call between US President Biden and Chinese President Xi is expected to take place sometime in spring.
• Looking ahead, highlights include Monetary Authority of Singapore Policy Review, Vietnam Industrial Production & Retail Sales.

More Newsquawk in 2 steps:

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

LOOKING AHEAD

• Highlights include Monetary Authority of Singapore Policy Review, Vietnam Industrial Production & Retail Sales.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks traded mixed on Friday following the latest PCE inflation data which on the surface was relatively in line with expectations although the Core services ex. housing print accelerated in December while Personal Income and Consumer Spending were strong, showing consumer demand is still high. Nonetheless, the major indices finished relatively flat aside from the NDX which underperformed due to tech weakness after weak earning reports from INTC, KLAC and FICO.
• SPX -0.07% at 4,891, NDX -0.55% at 17,421, DJI +0.16% at 38,109, RUT +0.12% at 1,978.
• Click here for a detailed summary.

NOTABLE HEADLINES

• US President Biden’s administration is expected to formally announce billions of dollars in chip subsidies to Intel (INTC), TSMC (2330 TT) and others in the coming weeks to help build new US factories, according to WSJ.

COMMODITIES

• Russian Energy Minister said Russian oil output is seen broadly unchanged in 2024 from 2023, according to RIA.
• Head of Russia’s Gazprom Neft said there is a slight surplus in the global oil market and he sees no need for additional oil supply cuts by OPEC+ oil producers.

GEOPOLITICAL

MIDDLE EAST

• Three US troops were killed and dozens were injured from an aerial drone attack on US forces in northeastern Jordan near the Syrian border which US President Biden said was carried out by radical Iran-backed militant groups operating in Syria and Iraq. It was later reported that President Biden said the US will respond to the attack, according to Reuters.
• Negotiators were reportedly closing in on a hostage deal that would stop fighting in Gaza for weeks, according to NYT. However, it was separately reported that Israeli PM Netanyahu’s office said the summit to negotiate a hostage deal was constructive but gaps remain and they will continue to negotiate a hostage deal this week, according to Reuters.
• White House said there is no change to its Israel policy after NBC News reported the US was reviewing weapons transfers to Israel.
• Several countries suspending funding for the United Nations Relief and Works Agency for Palestine Refugees are allegations that some staff were involved in the October 7th deadly Hamas attacks on Israel, according to BBC.
• US military said it conducted a strike against a Houthi anti-ship missile aimed towards the Red Sea which was prepared to launch, according to Reuters.
• US official said National Security Adviser Sullivan told Chinese Foreign Minister Wang Yi that Iran is supporting instability in the Red Sea and urged Beijing to use its influence to rein in Tehran, while the official added that China said they are raising Iran’s support for the Houthis with Iran. US also raised with China its deep concerns about the growing relationship between North Korea and Russia.
• Iran said it successfully launched three satellites into space simultaneously with a rocket that previously had multiple failures.

OTHER

• US President Biden’s administration is reportedly working on a long-term strategy for supporting Ukraine although the plans do not anticipate significant gains by Ukraine against Russia in 2024, according to Washington Post.
• Armenian PM Pashinyan said they proposed a mutual arms control mechanism to Azerbaijan and the signing of a non-aggression pact, according to France 24.
• US said the Venezuelan court decision upholding a ban on leading opposition presidential candidate Machado is deeply concerning and the US is currently reviewing its Venezuela sanctions policy based on this development, according to the State Department.
• South Korean military said North Korea fired off multiple cruise missiles, while it was later reported that North Korean leader Kim guided a submarine launch cruise missile test on Sunday and inspected the construction of a nuclear submarine. Furthermore, Kim said nuclear weaponisation of the navy is key to building a state nuclear strategic force.
• US & Philippines eye 2+2 talks in Manila for the first time in which US Secretary of State Blinken and Defence Secretary Austin will meet Philippine counterparts in March, according to Nikkei.

ASIA-PAC

NOTABLE HEADLINES

• White House said US National Security Adviser Sullivan and Chinese Foreign Minister Wang Yi held candid, substantive and constructive discussions on global and regional issues including Ukraine, the Middle East, North Korea, South China Sea and Burma, while Sullivan stressed that although the countries are in competition, both sides need to prevent it from veering into conflict or confrontation. White House also stated US and Chinese officials committed to maintaining a strategic channel of communication and pursuing additional high-level diplomacy and consultations through a call between US President Biden and Chinese President Xi which the US expects to take place sometime in spring. It was also reported that Secretary of State Blinken may revisit Beijing this year, according to Reuters.
• China’s Foreign Ministry said Chinese Foreign Minister Wang told US National Security Adviser Sullivan that the US and China should treat each other as equals rather than be condescending, while Wang stressed the Taiwan issue is China’s internal affair. China’s Foreign Ministry also stated that US and China's presidents will maintain regular contact to provide strategic guidance for bilateral relations and will make good use of the current strategic communication channels and dialogue mechanisms.
• The first joint meeting of the US-China working group on fentanyl precursor chemicals will be held on January 30th in Beijing with the US to pursue enforcement actions and impose controls of precursors, according to a senior US official.
• China’s securities regulator announced it is to fully suspend restricted shares lending from this Monday, while the Shanghai and Shenzhen stock exchanges will suspend securities lending by strategic investors during lockup periods, according to Reuters.

DATA RECAP

• Chinese Industrial Profits YY (Dec) 16.8% (Prev. 29.5%)
• Chinese Industrial Profits YTD YY (Dec) -2.3% (Prev. -4.4%)
• New Zealand Trade Balance (Dec) -0.32B (Prev. -1.23B, Rev. -1.25B)
• New Zealand Exports (Dec) 5.94B (Prev. 5.99B, Rev. 5.95B)
• New Zealand Imports (Dec) 6.26B (Prev. 7.23B, Rev. 7.20B)

EU/UK

NOTABLE HEADLINES

• ECB’s Knot said Eurozone wage growth needs to slow before rates can be decreased, while he stated that they have a credible prospect that inflation will return to 2% in 2025 but added conviction is missing that wage growth will adapt to the lower inflation, according to Reuters citing an interview with Dutch TV program Buitenhof.
• Brussels is considering support for solar panel makers as Chinese imports flood the market, according to FT.
• French farmers vowed to blockade Paris and continue protests despite the concessions offered by PM Attal including the scrapping of a diesel tax increase, according to FT.