Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks were pressured on Friday in a resumption of tech-related underperformance and Treasuries also extended their selling ahead of this week's key central bank meetings. Data releases were mixed with a retreat lower in the Empire Manufacturing survey and another rise in import prices, while above-forecast industrial production was offset by another set of downward revisions, although stable consumer inflation expectations in the Michigan survey (against expectations for a slight rise) coincided with the lows in T-notes.
• Russian President Putin won 88% of votes in the Russian election where the opposition was banned, according to FT. Russian President Putin said Russia should be stronger and more effective and his win will allow Russia to consolidate society and shows how Russia was right to choose its current path. Furthermore, the White House commented the Russian election was not free nor fair given how Putin has imprisoned opponents and prevented others from running against him, while Ukrainian President Zelensky said there is no legitimacy in Russian imitation of elections and that Putin seeks to rule forever, according to Reuters.
• Looking ahead, highlights include Japanese Machinery Orders, Singapore Non-Oil Exports, Chinese Industrial Production & Retail Sales.

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LOOKING AHEAD

• Highlights include Japanese Machinery Orders, Singapore Non-Oil Exports, Chinese Industrial Production & Retail Sales.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks were pressured on Friday in a resumption of tech-related underperformance and Treasuries also extended their selling ahead of this week's key central bank meetings. Data releases were mixed with a retreat lower in the Empire Manufacturing survey and another rise in import prices, while above-forecast industrial production was offset by another set of downward revisions, although stable consumer inflation expectations in the Michigan survey (against expectations for a slight rise) coincided with the lows in T-notes.
• SPX -0.65% at 5,117, NDX -1.15% at 17,808, DJIA -0.49% at 38,714, RUT +0.40% at 2,039.
• Click here for a detailed summary.

COMMODITIES

• Ukraine’s SBU security service attacked three Rosneft oil refineries in Russia’s Samara region with drones. It was separately reported that a fire broke out at Slavyansk refinery in the Krasnodar region following a drone attack, while the Syzran oil refinery reportedly experienced a fire which was later put out.

GEOPOLITICAL

MIDDLE EAST

• Israeli PM Netanyahu said US Senate Majority Leader Schumer’s speech commenting on Israeli elections was inappropriate and they will continue military pressure on Hamas. Netanyahu said Israel’s goal of eliminating Hamas battalions goes hand in hand with enabling civilians to leave Rafah.
• Israel’s Mossad chief Barnea was expected to resume Gaza ceasefire talks with Qatar’s PM and Egyptian officials on Sunday with the meeting a direct response to the latest proposal from Hamas and talks will focus on the remaining gaps between Israel and Hamas, according to a source briefed on the talks cited by Reuters.
• Egyptian President El-Sisi said Egypt and EU leaders agreed on rejecting any Israeli military operation in Rafah, while EU’s von der Leyen said it is critical to achieve an agreement on a ceasefire in Gaza rapidly now and that Gaza is facing famine which they cannot accept. German Chancellor Scholz said they cannot stand by and watch Palestinians starve, while he added that lasting security for Israel lies in a solution with Palestinians, meaning a two-state solution.
• A Syrian soldier was injured in an Israeli strike on the southern region, according to Syrian state TV.
• Iran and the US held secret talks on proxy attacks and a ceasefire, according to the New York Times.
• UKMTO noted an incident off Yemen’s Aden where an explosion was reported near the Master of Merchant vessel although there was no damage to the vessel and the crew were reported safe.

OTHER

• Russian President Putin won 88% of votes in the Russian election where the opposition was banned, according to FT. Russian President Putin said Russia should be stronger and more effective and his win will allow Russia to consolidate society and shows how Russia was right to choose its current path. Furthermore, the White House commented the Russian election was not free nor fair given how Putin has imprisoned opponents and prevented others from running against him, while Ukrainian President Zelensky said there is no legitimacy in Russian imitation of elections and that Putin seeks to rule forever, according to Reuters.
• Russian air defence systems downed 35 Ukraine-launched drones over eight regions, while Russia launched 14 drones against Ukraine’s Odesa which damaged agricultural enterprises and infrastructure.
• Russia’s Foreign Ministry accused Ukraine of stepping up ‘terrorist activities’ during the Russian election to attract more aid and weapons from the West, while Russia said Ukraine dropped a shell from a drone on a polling station in the Zaporizhzhia region.
• Russian Foreign Ministry spokeswoman commented on French President Macron’s idea of a ceasefire in Ukraine during the Olympics and proposed for him to stop weapons supplies to Ukraine, according to TASS.
• Head of parliament in the breakaway Georgian region of South Ossetia said a possible inclusion into Russia is being discussed with Moscow, according to RIA.
• SpaceX is building hundreds of spy satellites under a classified contract with the US National Reconnaissance Office, according to Reuters sources.
• North Korea’s leader Kim oversaw warfare drills and urged realistic preparation for combat, according to KCNA.

ASIA-PAC

NOTABLE HEADLINES

• China’s Vice Commerce Minister said they are studying a reduction of new energy vehicle insurance premium rates and improving NEV maintenance service capabilities to reduce buyer worries, according to Yicai.
• China’s air passenger numbers rose 44.6% Y/Y to 62.48mln trips in February with international passenger traffic up 593.4% Y/Y to 81.8% of 2019 levels and domestic air passenger traffic up 35.5% Y/Y in February.
• India is to begin voting in the national elections on April 19th, while India will end voting on June 1st and it will count votes cast in the national elections on June 4th.

EU/UK

NOTABLE HEADLINES

• UK PM Sunak’s strategists are planning another tax-cutting budget in September ahead of an election in October or November if he can survive amid doubts about his leadership spreading in the Conservative Party, while Sunak’s government is said to be facing the same levels of economic misery that led to the Conservative Party’s defeat in 1997, according to Bloomberg citing the Misery Index.
• ECB’s de Cos said it is normal that they should begin cutting rates if their macroeconomic forecasts are met in the coming months and that June would be a good date to start, while he believes the current degree of consensus is very high and he hopes this will continue, according to an interview with Spanish newspaper El Periodico.
• ECB's Villeroy said on Friday that they are not far from the 2% inflation target and are exiting the crisis of inflation, according to a Europe 1 radio interview.
• Fitch affirmed Germany at AAA; Outlook Stable and affirmed Malta at A+; Outlook Stable, while S&P affirmed Spain at A; Outlook Stable.