Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks ultimately finished relatively flat on Friday with mild losses for the major indices on what was a choppy session, while the small-cap Russell 2000 index was the notable laggard as participants digested a hot NFP report which heavily weighed on bonds and spurred a rally in the dollar. Money markets are now only fully pricing in just one rate cut by year-end vs. two rate cuts priced in pre-data although there is still around a 50% probability of two cuts in 2024.
The centre-right European People’s Party is set to hold the most seats in the European Parliament with 189 seats, according to the latest EU-wide projections cited by Reuters. However, far-right parties made significant gains as they performed well in Germany and comfortably won in France which prompted French President Macon to dissolve parliament and announce snap elections to be held on June 30th and July 7th. Furthermore, Belgian PM Alexander De Croo announced his resignation after the defeat of his party in the European elections, according to APA.
Looking ahead, highlights Japanese GDP, Current Account & Bank Lending, Holiday Closures in Australia, Mainland China, Hong Kong & Taiwan.

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Highlights Japanese GDP, Current Account & Bank Lending, Holiday Closures in Australia, Mainland China, Hong Kong & Taiwan.
Click here for the Newsquawk Week Ahead.

US TRADE

US stocks ultimately finished relatively flat on Friday with mild losses for the major indices on what was a choppy session, while the small-cap Russell 2000 index was the notable laggard as participants digested a hot NFP report which heavily weighed on bonds and spurred a rally in the dollar. Money markets are now only fully pricing in just one rate cut by year-end vs. two rate cuts priced in pre-data although there is still around a 50% probability of two cuts in 2024.
SPX -0.08% at 5,347, NDX -0.11% at 19,001, DJI -0.22% at 38,799, RUT -1.12% at 2,027.
Click here for a detailed summary.

DATA RECAP

Iraq set the July Basrah medium crude official selling price to Asia at plus USD 0.60/bbl vs Oman/Dubai average and to Europe at minus USD 2.85/bbl vs dated Brent, while it set the OSP to North and South America at minus USD 0.65/bbl vs ASCI, according to SOMO.
Iraqi Oil Minister said there was progress in talks held on Sunday with Kurdish regional government officials regarding resuming northern oil exports, according to Reuters.
US Department of Energy was seeking 6mln more barrels for the SPR, according to a report on Friday.

MIDDLE EAST

Gaza health ministry said 274 Palestinians were killed and 698 were injured during an Israeli offensive on a Nuseirat camp, while a Palestinian Islamic Jihad official said Israel’s offensive at Nuseirat will not affect the prisoners/hostages swap deal.
Hamas chief Haniyeh said Israel cannot force its choices on them and they won’t accept any deal that doesn’t achieve security for their people. It was also reported that the Hamas armed wing said three Israeli hostages were killed including a US citizen during an Israeli hostage-freeing operation in Gaza.
Israeli minister Gantz resigned from the emergency government and called for early elections, while he accused PM Netanyahu of mishandling Israel’s war in Gaza, according to FT.
Hezbollah said it fired a salvo of Falaq 2 rockets at Israel for the first time.
Yemen’s Houthis said they targeted a British destroyer and two related ships in the Red Sea with ballistic missiles, although the UK Defence Ministry said assertions by Houthis that they attacked a British destroyer in the Red Sea are false.
UKMTO said a vessel was hit by an unknown projectile 70 NM southwest of Yemen’s Aden which resulted in a fire although no casualties were reported.

OTHER

Russian forces appeared to have made headway in the key Ukrainian town of Chasiv Yar, according to sources cited by Reuters.
US President Biden and French President Macron committed to supporting efforts to bring forward extraordinary profits from immobilised Russian sovereign assets for the benefit of Ukraine. Furthermore, they expressed strong concern about transfers of weapons especially from Iran and North Korea, as well as dual-use materials from China to support Russia’s war against Ukraine, while they support actions to curtail access to US and French financial systems for such transfers.
G7 plans to warn small Chinese banks over helping Russia evade Western sanctions, according to sources cited by Reuters.
South Korea is to restart 'unbearable' loudspeaker broadcasts in response to North Korea's sewage balloons, according to Sky News.
Philippines National Security Adviser said they reaffirmed a commitment to uphold their sovereign rights and jurisdiction over the second Thomas Shoal, while they will continue to maintain and supply their outposts in the South China Sea without seeking permission from any other nation.

NOTABLE HEADLINES

China and Pakistan agreed to strengthen mining development and industrial cooperation, while they are willing to actively promote investment and cooperation between Chinese firms in the mining industry in Pakistan and jointly strengthen the planning of mining industry parks including deep processing of ores.
BoJ is expected to consider whether to scale back its roughly JPY 6tln in monthly government bond purchases at the upcoming meeting as it moves toward policy normalisation, according to a report in Nikkei on Friday.

NOTABLE HEADLINES

Deltapoll survey showed UK opposition Labour Party with 46% of support (-2) vs the ruling Conservative Party at 21% (-4) with the Labour Party set to gain a 416 majority.
The centre-right European People’s Party is set to hold the most seats in the European Parliament with 189 seats, according to the latest EU-wide projections cited by Reuters. However, far-right parties made significant gains as they performed well in Germany and comfortably won in France which prompted French President Macon to dissolve parliament and announce snap elections to be held on June 30th and July 7th. Furthermore, Belgian PM Alexander De Croo announced his resignation after the defeat of his party in the European elections, according to APA.
ECB President Lagarde said via an op-ed in a newspaper on Friday that the ECB still needs to have its foot on the brake for a while and that the path to 2% inflation won't be an entirely smooth ride. Lagarde also said that they made major progress but the inflation fight is not over and rates are to remain restrictive for as long as necessary.
ECB's Nagel said on Friday that a rate cut reflects receding inflation and the German economy is picking up speed, while he added the German debt brake is important and the Bundesbank is a big supporter of it.
ECB’s Holzmann said the ECB can declare victory on inflation when it is at 2%, while he added that they are on the path to an economic recovery.