Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks finished higher on Friday albeit off their best levels as data releases took centre stage including a hotter-than-expected PPI report which initially spurred a hawkish reaction but was swiftly pared as participants digested the details of the report with analysts at BofA noting that overall, the components of the PPI report that affect the PCE report, were softer. Furthermore, University of Michigan Sentiment disappointed and printed its lowest since November 2023, while both 1-year and 5-year ahead inflation expectations fell to 2.9% from 3.0%.
• A person was killed and two people were wounded in a suspected assassination attempt that took place at a Trump rally in Pennsylvania on Saturday which injured Donald Trump in the ear although Trump was said to be okay. It was later announced that the gunman who was killed by the Secret Service was identified as 20-year-old registered Republican Thomas Matthew Crooks. Furthermore, Trump said that he looks forward to speaking from Wisconsin this week and that it is more important than ever that they stand united.
• Looking ahead, highlights include New Zealand Performance of Services Index, South Korean Trade Data, Chinese GDP, Industrial Production, Retail Sales & House Prices, PBoC MLF Operation & 1-Year MLF Rate, Supply from Australia, Japanese Markets are Closed for Holiday.

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LOOKING AHEAD

• Highlights include New Zealand Performance of Services Index, South Korean Trade Data, Chinese GDP, Industrial Production, Retail Sales & House Prices, PBoC MLF Operation & 1-Year MLF Rate, Supply from Australia, Japanese Markets are Closed for Holiday.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks finished higher on Friday albeit off their best levels as data releases took centre stage including a hotter-than-expected PPI report which initially spurred a hawkish reaction but was swiftly pared as participants digested the details of the report with analysts at BofA noting that overall, the components of the PPI report that affect the PCE report, were softer. Furthermore, University of Michigan Sentiment disappointed and printed its lowest since November 2023, while both 1-year and 5-year ahead inflation expectations fell to 2.9% from 3.0%.
• SPX +0.55% at 5,615, NDX +0.59% at 20,331, DJI +0.62% at 40,001, RUT +1.09% at 2,148.
• Click here for a detailed summary.

NOTABLE HEADLINES

• A person was killed and two people were wounded in a suspected assassination attempt that took place at a Trump rally in Pennsylvania on Saturday which injured Donald Trump in the ear although Trump was said to be okay. It was later announced that the gunman who was killed by the Secret Service was identified as 20-year-old registered Republican Thomas Matthew Crooks. Furthermore, Trump said that he looks forward to speaking from Wisconsin this week and that it is more important than ever that they stand united.
• FBI Director Wray said they have committed the full force of the bureau to the investigation and that the shooter acted alone, while they have not yet identified an ideology in connection with the suspect. Furthermore, Wray said bomb specialists secured a suspicious device in the suspect’s car and the shooting is being looked at as both a domestic terrorism act and an assassination attempt.
• US President Biden said he is grateful that Trump is doing well and they had a short and good conversation on Saturday night, while Biden added an assassination attempt is contrary to everything they stand for and there is no information yet of the shooter’s motive.
• US House Democrats confronted President Biden directly in a virtual meeting on Friday and told him it was time for someone else to lead, according to Politico.
• Alphabet’s (GOOG) Google is near a USD 23bln deal for cybersecurity start-up Wiz, according to WSJ.

COMMODITIES

• Iraq’s crude oil production was above the agreed quota by 184k bpd in June, while it will adhere to the required production level in the agreement, which is 4mln bpd, for July and the coming months, according to the Iraqi Oil Minister. Furthermore, the Oil Ministry stated that Iraq will compensate for any overproduction since the beginning of the year during the compensation period that extends until the end of September 2025.
• Kuwait Petroleum Corporation announced a new ‘giant’ oil discovery with oil reserves exceeding 3bln barrels and said the newly discovered oil field’s reserves are equivalent to the country’s entire production in three years.

GEOPOLITICAL

MIDDLE EAST

• Two Egyptian sources said Gaza talks have stopped until the Israeli side demonstrates that it is serious, while a senior source cited by Egypt’s Al Qahera News TV stated that Egypt called for Israel to not obstruct ongoing Gaza ceasefire negotiations and not to put forward new principles that contradict what was previously agreed upon. Furthermore, a senior source claimed Israel is wasting time in formal meetings to lure the Israeli public opinion away from reaching a deal, while a Hamas senior official cited by Al Jazeera said that Hamas awaits a response from mediators on proposals introduced to Israel.
• Israeli strikes on Gaza City killed at least 17 and wounded 50, according to health officials. It was also reported that at least 71 Palestinians were killed and 289 injured in an Israeli attack on Khan Younis which targeted Hamas military chief Mohammed Deif. Furthermore, Hamas said that those killed in Khan Younis were civilians and the attack was a grave escalation, while it added that the attack showed Israel wasn’t interested in reaching a ceasefire agreement.
• Israeli military official said it was still verifying the result of a strike on Hamas military chief Mohammed Deif, while Hamas denied the killing of its top commander. It was later reported that the Israeli military said Khan Younis Brigade commander Rafa Salama was killed on Saturday by the Israeli strike on Gaza and Israel’s military chief said Hamas is trying to hide the results of the strike on its armed wing commander Deif.
• Syrian army said one soldier was killed and three others were injured in Israeli strikes on military sites and a residential building in Damascus.
• Yemen’s Houthis said they conducted military operations in the Gulf of Aden and Israel’s Eilat.

OTHER

• Kremlin spokesman Peskov said Russia is able to respond to the US deploying long-range missiles in Europe, while he warned that European capitals could be victims of the US placing long-range missiles in Europe, according to TASS.
• Chinese and Russian naval fleets recently conducted the 4th joint sea patrol in the western and northern Pacific Ocean, according to Chinese state media.
• North Korean Defence Ministry condemned a joint statement by South Korea and the US on nuclear guidelines, according to KCNA.
• US State Department announced on Friday new sanctions targeting Iran's chemical weapons research and development.

ASIA-PAC

NOTABLE HEADLINES

• New Zealand issued severe weather warnings for some areas as it braces for heavy downpours and gale-force winds on Monday, according to Bloomberg.

EU/UK

NOTABLE HEADLINES

• UK PM Starner is expected to introduce an AI bill as part of 35 bills to be included in the King’s Speech on Wednesday, according to FT. It was reported by Bloomberg that Starmer will use the upcoming King’s Speech to showcase his government’s efforts to spur economic growth in the UK. Furthermore, the UK government said it will strengthen the role of the Office for Budget Responsibility and enforce new spending rules in the legislative agenda in the week ahead, according to Reuters.