Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks rallied on Friday as the focus was on the data releases in which NFP missed estimates and Average Earnings were softer than expected. This saw expectations of Fed policy easing increase and pressured US yields which further supported tech, with much of the heavy lifting seen in big tech as AAPL shares were underpinned by recent better-than-feared earnings results.
• Israeli PM Netanyahu said they cannot accept Hamas’s demands for an end to the war and the withdrawal of forces from Gaza, while it was also reported that Israel’s military said the Kerem Shalom Crossing with Gaza is now closed to aid trucks after it came under fire with mortar shelling which killed 3 Israeli soldiers and wounded 12 others from the Givanti and Nahal brigades.
• Looking ahead, highlights include Hong Kong Manufacturing PMI, New Zealand ANZ Commodity Price Index, Chinese Caixin Services & Composite PMI, Holiday Closures in Japan, South Korea, Thailand & UK.

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LOOKING AHEAD

• Highlights include Hong Kong Manufacturing PMI, New Zealand ANZ Commodity Price Index, Chinese Caixin Services & Composite PMI, Holiday Closures in Japan, South Korea, Thailand & UK.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks rallied on Friday as the focus was on the data releases in which NFP missed estimates and Average Earnings were softer than expected. This saw expectations of Fed policy easing increase and pressured US yields which further supported tech, with much of the heavy lifting seen in big tech as AAPL shares were underpinned by recent better-than-feared earnings results.
• SPX +1.26% at 5,128, NDX +1.99% at 17,891, DJI +1.18% at 38,676, RUT +0.97% at 2,036.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed’s Williams (voter) said they are committed to getting the job done on bringing down inflation, while he added that an explicit, numerical inflation target is critical for achieving price stability.
• Fed’s Goolsbee (non-voter) said the US rate-path dot plot needs more context and Fed policymakers should communicate economic rationale for interest-rate-path views, according to Reuters.

DATA RECAP

• US Non-Farm Payrolls (Apr) 175.0k vs. Exp. 243.0k (Prev. 303.0k, Rev. 315k); two month net revisions -22k (prev. +22k)
• US Unemployment Rate (Apr) 3.9% vs. Exp. 3.8% (Prev. 3.8%)
• US Average Earnings YY (Apr) 3.9% vs. Exp. 4.0% (Prev. 4.1%)

FX

• S&P upgraded Turkey’s rating to 'B+'; Outlook Positive on Friday and cited economic rebalancing.

COMMODITIES

• Saudi Arabia raised its oil prices for all grades to Asia for June with Arab Light OSP to Asia set at a premium of USD 2.90/bbl vs Oman/Dubai average and OSP to NW Europe set at a premium of USD 2.10/bbl vs ICE Brent, while it set the OSP to the US at a premium of USD 4.75/bbl vs ASCI.
• UAE’s Sharjah announced the discovery of a new gas field which is said to carry ‘promising quantities’, according to a statement cited by Reuters.

GEOPOLITICAL

MIDDLE EAST

• Israel’s military said the Kerem Shalom Crossing with Gaza is now closed to aid trucks after it came under fire with mortar shelling which killed 3 Israeli soldiers and wounded 12 others from the Givanti and Nahal brigades, while Hamas claimed responsibility for the mortar attack on Kerem Shalom and said it targeted an Israeli army base, according to Reuters.
• Israeli PM Netanyahu said they cannot accept Hamas’s demands for an end to the war and the withdrawal of forces from Gaza, while he noted that ending the Gaza war now would keep Hamas in power and Israel would not accept terms that amount to a capitulation with Israel to keep fighting until its war aims are achieved. It was separately reported that Israel’s Defence Minister said Hamas appears uninterested in a deal meaning strong military action in Gaza’s Rafah could happen very soon, according to Reuters.
• Hamas’s leader said they are still keen on reaching a comprehensive agreement, while the group said the round of negotiations in Cairo has ended and the delegation will leave to consult with the group’s leadership, according to Reuters. It was separately reported that Hamas agrees that Israel can commit to ending the war in the second stage of the hostage deal not the first, according to Times of Israel via social media platform X.
• CIA chief Burns is to travel to Doha for an emergency meeting with Qatar’s PM as Gaza talks are said to be ‘near to collapse’, while Qatar and the US are to exert maximum pressure on Israel and Hamas to continue negotiations, according to an official briefed on talks cited by Reuters. It was separately reported that Burns will stay in Qatar on Monday and likely travel to Israel this week to meet with Israeli PM Netanyahu, according to an Axios reporter.
• US reportedly put a hold on an ammunition shipment to Israel last week, according to two Israeli officials cited by Axios.
• Israeli Cabinet decided to close Qatari TV network Al Jazeera’s operations in Gaza, according to a statement cited by Reuters. It was later reported that Israel’s communications ministry said a police raid was conducted at an Al Jazeera premises in Jerusalem.

OTHER

• Russia said it took full control of Ocheretyne village in eastern Ukraine, according to the Defence Ministry, cited by Reuters.

ASIA-PAC

NOTABLE HEADLINES

• Chinese President Xi said the China-France relationship is a model of peaceful coexistence and win-win cooperation between countries with different systems, while he added they are ready to consolidate the traditional friendship, enhance political mutual trust, build strategic consensus, as well as deepen exchanges and cooperation with France, according to Xinhua.
• EU is lobbying China to exclude agriculture from a series of escalating commercial disputes and called for the ‘strategic sector’ to be protected from trade tensions in the renewable energy and electric vehicle industries, according to FT.
• A magnitude 6.1 earthquake was reported in Seram, Indonesia, according to GFZ.

EU/UK

NOTABLE HEADLINES

• UK PM Sunak was warned by Conservative MPs to show some vision and start digging his party out of a hole after a disastrous set of local election results, while it was also reported that the Labour Party comfortably won the London mayoral contest to give Sadiq Khan an unprecedented third term as London Mayor, according to FT.
• ArcelorMittal (MT NA) warned the UK government that one of its main divisions could be forced to exit the UK if an application to close and redevelop a commercial port in south-east England receives approval this week, according to FT.
• Fitch affirmed Italy at BBB; Outlook Stable and affirmed Denmark at AAA; Outlook Stable on Friday.