Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks finished higher on Friday with the gains led by strength in big tech shares post-earnings, while the macro highlight was the March Core PCE data which printed in line with estimates M/M and the Y/Y reading remained at 2.8% but was slightly above the market consensus. Nonetheless, the data resulted in a kneejerk dovish reaction after the recent hot Q1 GDP Prices stoked concerns over a hot March core PCE print today, while it was revealed that the hot Q1 data was largely a function of upward revisions to the January figures.
• Egypt offered a new proposal for a truce between Israel and Hamas in which some Israeli hostages would be exchanged for Palestinian prisoners and a three-week ceasefire, while Egyptian officials said Israel helped create the proposal and would enter longer-term discussions once Hamas releases the first group of 20 hostages over the truce period, according to WSJ.
• Hamas said it received Israel’s official response to its position over ceasefire talks and will study the proposal before submitting its response. It was later reported that a Hamas official told AFP that there were no major issues in the group’s remarks on the truce proposal, while it was separately reported that a Hamas delegation is to visit Cairo on Monday for ceasefire talks, according to an official cited by Reuters.
• Looking ahead, highlights include Vietnam Industrial Production, Retail Sales & CPI, Thailand Trade Data, Japanese Holiday Closure.

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LOOKING AHEAD

• Highlights include Vietnam Industrial Production, Retail Sales & CPI, Thailand Trade Data, Japanese Holiday Closure.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks finished higher on Friday with the gains led by strength in big tech shares post-earnings, while the macro highlight was the March Core PCE data which printed in line with estimates M/M and the Y/Y reading remained at 2.8% but was slightly above the market consensus. Nonetheless, the data resulted in a kneejerk dovish reaction after the recent hot Q1 GDP Prices stoked concerns over a hot March core PCE print today, while it was revealed that the hot Q1 data was largely a function of upward revisions to the January figures.
• SPX +1.02% at 5,099, NDX +1.65% at 17,718, DJIA +0.40% at 38,239, RUT +1.05% at 2,001.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Apple (AAPL) intensified talks with OpenAI for iPhone generative AI features in which they are discussing the terms of a possible agreement and how the OpenAI features would be integrated into Apple’s iOS 18, according to Bloomberg.

COMMODITIES

• A drone attack reportedly targeted the Khor Mor gas field in Iraq’s Kurdistan region, according to Reuters.
• TotalEnergies (TTE FP) CEO said the Co. is expected to complete the first phase of the solar power project in Iraq within the next year, while the Co. is to complete the first stage of utilising the by-produced gas from Iraq’s project during 2025 with a production capacity of 50mln cubic feet, according to Reuters.
• Turkey is in talks with ExxonMobil (XOM) over a multi-billion dollar LNG deal, according to FT.

GEOPOLITICAL

MIDDLE EAST

• Israel’s Foreign Minister said Israel will suspend the planned operation in Rafah if Hamas agrees to a hostage deal and stated the release of hostages is their top priority. It was also reported that the Israeli military said the amount of aid going into Gaza will scale up in the coming days.
• Palestinian President Abbas said Israel will go into Rafah in the next few days and the US is the only country that can stop Israel from attacking Rafah, while he is worried that Israel will try to push Palestinians out of the West Bank after it is done with Gaza, according to Reuters.
• US President Biden spoke with Israeli PM Netanyahu on Sunday and reaffirmed his ironclad commitment to Israel’s security, as well as stressed the need for progress in aid deliveries to be sustained and enhanced in full coordination with humanitarian organisations. Furthermore, they discussed Rafah and Biden reiterated his clear position, according to the White House cited by Reuters.
• White House national security spokesperson Kirby said Israel assured the US that they won’t go into Rafah until the US has a chance to share its perspectives and concerns, while he added Israelis have started to meet the aid commitments that US President Biden asked them to meet. It was separately reported that US Secretary of State Blinken will travel to Jordan and Israel following Saudi Arabia, according to Reuters.
• Egypt offered a new proposal for a truce between Israel and Hamas in which some Israeli hostages would be exchanged for Palestinian prisoners and a three-week ceasefire, while Egyptian officials said Israel helped create the proposal and would enter longer-term discussions once Hamas releases the first group of 20 hostages over the truce period, according to WSJ.
• Hamas said it received Israel’s official response to its position over ceasefire talks and will study the proposal before submitting its response. It was later reported that a Hamas official told AFP that there were no major issues in the group’s remarks on the truce proposal, while it was separately reported that a Hamas delegation is to visit Cairo on Monday for ceasefire talks, according to an official cited by Reuters.
• France’s Foreign Minister said to make proposals in Lebanon to stabilise the zone and prevent a war between Hezbollah and Israel, according to Reuters.
• UKMTO said it received reports of an incident 177 nautical miles southeast of the Port of Nashtoon located in eastern Yemen on Saturday night which involved a small boat that approached a ship, although there was no harm or damage and the ship carried on its journey, according to IRNA.

OTHER

• US intelligence found that Russian President Putin did not directly order Navalny’s death in February, according to WSJ. US intelligence report does not dispute Putin’s culpability for the death of Navalny but believes he probably did not order it at that moment, while a Kremlin spokesperson called the intelligence report empty speculation.
• Russian Foreign Ministry said there will be a severe response if Russian assets are touched and it is a pity that some in the West do not understand it, while it was also reported that Russia’s Kremlin said there will be endless legal challenges if Russian assets are seized.
• Russia’s Kremlin said there are no grounds to hold any peace talks with Ukraine given Kyiv’s official refusal to conduct such talks with Russia.
• Kyiv’s top general said fighting on the eastern front worsened and Ukrainian troops had fallen back in three places.
• North Korea’s Foreign Ministry said it will make stern and decisive choices in response to the US using human rights for anti-North Korean behaviour, while it added that the US envoy on North Korean human rights is motivated politically and is considered political provocation, according to KCNA.

ASIA-PAC

NOTABLE HEADLINES

• PBoC injected CNY 2bln via 7-day reverse repos with the rate kept at 1.80% on Sunday, according to Reuters.
• US and Taiwan are to hold in-person negotiation talks on trade beginning on April 29th, according to Reuters.
• Japanese PM Kishida said they will promote union policies for wage increases, according to Reuters.

DATA RECAP

• Chinese Industrial Profits YTD Y/Y (Mar) 4.3% (Prev. 10.2%)

EU/UK

NOTABLE HEADLINES

• Fitch affirmed France at AA-; Outlook Stable and affirmed Switzerland at AAA; Outlook Stable, while it affirmed Sweden at AAA; Outlook Stable.