Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks were mixed on Friday as attention was on geopolitics following Israel's retaliation on Iran which turned out to be limited and with neither seen to escalate the situation further, while the Nasdaq underperformed with notable losses in Nvidia (NVDA) and Netflix (NFLX) shares in which the latter was hit on a slightly disappointing next quarter revenue guidance and stopping to report subscriber count.
• An explosion at a military base in Iraq used by the pro-Iranian militant group Iraqi Mobilization Forces south of Baghdad killed one person and wounded eight people, while the explosion was said to have been caused by an unknown air attack although Iraq’s military reported there were no drones or fighter jets in the area, according to Reuters.
• US House passed a USD 95bln aid package for Ukraine, Israel and Taiwan, while the bills include legislation on TikTok that would force it to be sold or face a national ban in the US, according to Reuters.
• Looking ahead, highlights include Australian Flash PMIs, UK Rightmove House Prices, PBoC Loan Prime Rates, Supply from Australia.

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LOOKING AHEAD

• Highlights include Australian Flash PMIs, UK Rightmove House Prices, PBoC Loan Prime Rates, Supply from Australia.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks were mixed on Friday as attention was on geopolitics following Israel's retaliation on Iran which turned out to be limited and with neither seen to escalate the situation further, while the Nasdaq underperformed with notable losses in Nvidia (NVDA) and Netflix (NFLX) shares in which the latter was hit on a slightly disappointing next quarter revenue guidance and stopping to report subscriber count.
• SPX -0.88% at 4,967, NDX -2.05% at 17,037, DJIA +0.56% at 37,986, RUT +0.24% at 1,947.
• Click here for a detailed summary.

FX

• SNB’s Jordan said it is very important that monetary policy remains geared towards price stability rather than being used to finance debt, otherwise it will not end well, while he added that structural reforms are needed to increase competitiveness so that growth can increase which is one of the biggest challenges, according to Reuters.

COMMODITIES

• A fire erupted at a crude oil transportation line east of Syria’s Al-Furqlus which firefighters responded to, according to state media.
• Chile imposed temporary anti-dumping tariffs on Chinese steel products used in mining to support the local industry, according to Bloomberg.

GEOPOLITICAL

MIDDLE EAST

• An explosion at a military base in Iraq used by the pro-Iranian militant group Iraqi Mobilization Forces south of Baghdad killed one person and wounded eight people, while the explosion was said to have been caused by an unknown air attack although Iraq’s military reported there were no drones or fighter jets in the area, according to Reuters.
• Five rockets were fired from the northern Iraqi town of Mosul towards a US military base inside of Syria, according to two security sources cited by Reuters.
• Iran-backed Lebanese group Hezbollah said it downed a drone that was attacking locations in southern Lebanon. It was separately reported that Hezbollah targeted two buildings used by enemy soldiers in the settlement of Metula and achieved a direct hit.
• Iran’s Supreme Leader Khamenei thanked the Revolutionary Guards for the April 13th attack on Israel and said the key issue is how Iran displayed its power in attacking Israel not how many missiles were launched or hit their target, while he called on Iranian armed forces to ceaselessly pursue military innovation and learn the ‘enemy’s tactics’, according to state media.
• US is expected to sanction an IDF unit for human rights violations in the West Bank, while Israeli Defence Minister Gallant spoke with US Secretary of State Blinken and urged the US to reconsider the decision to sanction the IDF, according to Axios.
• German Chancellor Scholz had a telephone call with Israeli PM Netanyahu and stressed the importance of avoiding escalation of regional hostilities, while Scholz explained the decision of the EU to impose further sanctions against Iran, according to Reuters.
• Turkish President Erdogan discussed efforts to reach a ceasefire and deliver humanitarian aid to Gaza with Hamas leader Haniyeh during a meeting in Istanbul, according to Reuters.
• Palestinian Authority President Abbas said they will reconsider bilateral relations with the US after its veto against the Palestinian bid for UN membership, according to Reuters.

OTHER

• US House passed a USD 95bln aid package for Ukraine, Israel and Taiwan, while the bills include legislation on TikTok that would force it to be sold or face a national ban in the US, according to Reuters.
• Ukrainian President Zelensky US aid will send a signal that it will not be a second Afghanistan and that the US will stay with Ukraine, while he said Ukraine will have a chance for victory and needs long-range weapons not to lose people on the front line. Furthermore, he responded that Ukraine is preparing when asked about a possible major offensive by Russia, according to Reuters.
• Ukraine sources said a large-scale drone attack was conducted against Russia which targeted energy facilities that support Russian military-industrial production in which at least three power substations and a fuel depot were hit in the attack, according to Reuters.
• Kremlin spokesman Peskov said the House passage of the Ukraine bill will make the US richer and further ruin Ukraine, resulting in more deaths, while he added the bill’s provision on confiscation of Russian assets will tarnish the image of the US and that Russia will take measures in response, according to Reuters.
• Russian Foreign Ministry said the US is using Ukrainians as cannon fodder and is fighting a hybrid war against Russia, while it added that deeper US immersion in a hybrid war against Russia will turn into a fiasco like its wars in Vietnam or Afghanistan, according to Reuters. In relevant news, the Russian Defence Ministry said Russia took full control over Bohdanivka in the Donetsk region, according to IFAX.
• China’s Foreign Ministry said any attempt to provoke camp confrontation in the South Pacific region does not serve the urgent needs of South Pacific island countries and the region should not become an arena for a major power rivalry, according to Reuters.
• North Korea said it conducted a test firing of missiles on Friday.

ASIA-PAC

NOTABLE HEADLINES

• US Secretary of State Blinken will visit China on April 24th-26th to meet officials in Shanghai and Beijing, while Blinken will be joined by top State Department official for Asia Kritenbrink, top narcotics official Robinson and cyberspace and digital policy ambassador Fick. Furthermore, a US official said Blinken will express US intent to have China curtail its support for Russia’s defence industrial base and it was also stated that the US is prepared to take steps against firms acting against US interests, according to Reuters.
• BoJ Governor Ueda said the BoJ will reduce JGB purchases at an unspecified time in the future but the extent of the reduction remains undetermined, while he reiterated to expect accommodative financial conditions to continue for the time being and that they need to take time to consider what to do with their ETF holdings. Ueda said the weighted average of medium and long-term inflation expectations indicates a rising trend but remains slightly below 2% and noted that raising interest rates is very likely if underlying inflation increases. Furthermore, he said the BoJ will proceed cautiously and is watching wages and will see the effect of possible wage increases on prices, especially service prices, while he added that they may change the short-term policy rate depending on the incoming data.

EU/UK

NOTABLE HEADLINES

• UK government rejected an EU proposal to negotiate a post-Brexit deal to relax travel and allow young adults to move across the Channel more easily, according to Bloomberg.
• ECB’s Villeroy said a June cut will be followed by others at a ‘pragmatic pace’ and tensions in the Middle East will not affect a flagged June rate cut ‘barring surprises’, according to Reuters.