Weekend News Roundup - Newsquawk Asia-Pac Market Open
- US stocks ultimately finished in the green on what was another choppy session last Friday and T-notes initially saw downward pressure in the wake of a dismal consumer confidence report accompanied by surging inflation expectations, while the latest PPI data was soft -in fitting with CPI- but sparked little reaction. Nonetheless, stocks and bonds recovered from the earlier lows into the closing bell, while on the US-China tariff front, China retaliated by raising the additional tariff on US goods to 125% from 84%.
- US President Trump issued a clarification of exceptions under Executive Order 14257 in which items excluded from reciprocal tariffs include smartphones, storage devices and some other electronics. However, Trump posted on Sunday that there was no tariff exception announced on Friday and that these products are subject to the existing 20% fentanyl tariffs and are just moving to a different tariff bucket, while he stated that “NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”.
- Looking ahead, highlights include New Zealand Services Index & Electronic Card Retail Sales, Singapore GDP, Chinese Trade Data, Monetary Authority of Singapore Policy Decision, Holiday Closures in India & Thailand.
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LOOKING AHEAD
- Highlights include New Zealand Services Index & Electronic Card Retail Sales, Singapore GDP, Chinese Trade Data, Monetary Authority of Singapore Policy Decision, Holiday Closures in India & Thailand.
- Click for the Newsquawk Week Ahead.
US TRADE
- US stocks ultimately finished in the green on what was another choppy session last Friday and T-notes initially saw downward pressure in the wake of a dismal consumer confidence report accompanied by surging inflation expectations, while the latest PPI data was soft -in fitting with CPI- but sparked little reaction. Nonetheless, stocks and bonds recovered from the earlier lows into the closing bell, while on the US-China tariff front, China retaliated by raising the additional tariff on US goods to 125% from 84%.
- SPX +1.72% at 5,359, NDX +1.89% at 18,690, DJI +1.56% at 40,213, RUT +1.47% at 1,858.
- Click here for a detailed summary.
TRADE/TARIFFS
- US President Trump issued a clarification of exceptions under Executive Order 14257 in which items excluded from reciprocal tariffs include smartphones, storage devices and some other electronics. However, Trump posted on Sunday that there was no tariff exception announced on Friday and that these products are subject to the existing 20% fentanyl tariffs and are just moving to a different tariff bucket, while he stated that “NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”.
- US President Trump said the bond market is going good and had a little moment but he solved that problem very quickly. Trump added that the 10% tariff is a floor or pretty close and that it doesn’t matter if the dollar went down as he thinks it will go up and will be stronger than ever.
- US President Trump’s administration is reportedly prioritising trading partners that are strategic to China with the US in talks with Japan, South Korea, India and Vietnam, according to Politico.
- White House spokesperson said US President Trump made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops, while President Trump is to issue a Section 232 study on semiconductors soon and said he will have more information on semiconductors on Monday. Furthermore, Trump said that autos, steel, pharmaceuticals, chips and other specific materials will be included in specific tariffs to ensure tariffs are applied fairly and effectively.
- US Commerce Secretary Lutnick said President Trump plans a separate levy on exempted electronics amid a trade war with electronics products to be part of upcoming sectoral tariffs and that semiconductor and electronic tariffs will come in a month or so, while he added that pharmaceutical tariffs will be coming in the next month or two and that the US had “soft entrees” through intermediaries with China on tariffs.
- USTR Greer said there are no plans yet for President Trump to speak with Chinese President Xi and stated electronic exemptions reflect a move from reciprocal tariffs to national security tariffs. Greer said they have to be much more deliberate about the semiconductor supply chain and he believes the US will have meaningful tariff deals with several countries in the next few weeks.
- China said the US tariff exclusion is a small step for the US to correct its wrong practice and called for the US to completely cancel the levies.
- UK government announced that prices were slashed on 89 foreign products ranging from pasta, fruit juices and spices to plastic and gardening supplies over the next two years, while it stated the UK global tariff will be temporarily suspended on 89 products saving UK businesses at least GBP 17mln a year.
- Spain’s Economy Minister said the pause in US tariffs is an opportunity for dialogue.
NOTABLE HEADLINES
- Fed's Collins (2025 voter) said in a WSJ interview on Friday “There’s a real recognition that we are likely moving into a period where there may be some difficult trade-offs to make” while she added that high inflation from tariff increases that risk slowing the economy would create a “challenging environment” for the Federal Reserve that compels the central bank to wait for economic weakness to materialise before entertaining rate cut. Furthermore, Fed’s Collins told the FT on Friday that the Federal Reserve “would absolutely be prepared” to deploy its firepower to stabilise financial markets should conditions become disorderly, while she added that markets are continuing to function well" and "we're not seeing liquidity concerns overall".
- Some of the world’s largest pension funds from Canada and Denmark are reportedly halting or reassessing their private market investments in the US due to President Trump's erratic policy blitz, according to FT.
CRYPTO
- Binance seeks to curb US oversight while in deal talks with Trump’s crypto company and has been in discussions to list a new dollar-pegged cryptocurrency from World Liberty Financial, according to WSJ.
COMMODITIES
- US Energy Secretary Wright said the US and Saudi Arabia will sign an agreement on energy investments and civilian nuclear technology, while he stated there will be lower average oil prices over the next four years under the Trump administration and he expects long-term cooperation between the US and Saudi to develop the civilian nuclear industry in the kingdom.
- Iraq signed an undersea oil exports pipeline deal with Italy’s Micoperi and Turkey’s Esta which will have 2.4mln bpd capacity.
- US President Trump plans to stockpile deep sea metals to counter China, according to FT.
GEOPOLITICAL
MIDDLE EAST
- Israel bombed a Gaza hospital as its military expanded its offensive, according to FT.
- Israeli military said sirens sounded in several areas in Israel and interception attempts were made after two missiles were launched from Yemen.
- US President Trump said Iran talks are going well and that Ukraine-Russia talks might be going okay but added there is a time when you have to put up or shut up. Furthermore, the White House said Iran discussions were very positive and constructive, as well as noted that the sides agreed to meet again next Saturday and US special envoy Witkoff underscored to Iran’s Foreign Minister that he had instructions from President Trump to resolve differences through dialogue and diplomacy if possible.
- Iran’s Foreign Minister Araqchi said both sides want an agreement in the short-term and not ‘talks for talks’, while he added the second round of talks will probably be next Saturday.
RUSSIA-UKRAINE
- Ukraine’s air force said on Saturday morning that Russia launched 88 drones in an overnight attack and announced on Sunday that Russia launched 55 drones targeting Ukraine, while the mayor of Ukraine's Sumy said over 20 were killed after a Russian missile strike on the city.
- Russian Defence Ministry said Russian forces captured Yelyzavetivka in eastern Ukraine and Russian air defence systems shot down a Ukraine F-16 jet, according to Interfax. It was also reported that Russia accused Ukraine of attacking its energy infrastructure on several occasions over the weekend.
- Russian Foreign Minister Lavrov said they have been keeping their word on a 30-day energy strikes moratorium and there were no direct or indirect contacts between Russia and Ukraine at the Antalya Forum. It was also reported that Turkish and Russian Foreign Ministers discussed efforts to achieve a ceasefire in the Russia-Ukraine war.
- Russia’s Kremlin said relations with the US are moving ahead very well and mutual visits by Russian and US envoys are very good reliable channels for communicating positions to each other.
- Military representatives from Turkey and foreign nations are to meet in Turkey on April 15th-16th to discuss Black Sea security after a possible ceasefire between Ukraine and Russia, according to the Turkish Defence Ministry.
ASIA-PAC
NOTABLE HEADLINES
- Japanese senior LDP official Onodera said a weak yen has caused higher domestic living costs and Japan must strengthen the yen by making its companies stronger, while Onodera said that Japan, as a US ally, shouldn’t think about using its US treasury holdings as a negotiating tool in bilateral trade talks.
- Taiwan’s Financial Regulator announced short-selling stock curbs will be extended for another week.
DATA RECAP
- Chinese New Yuan Loans (CNY)(Mar) 3.64T vs Exp. 3.00T (Prev. 1.01T)
- Chinese Aggregate Financing (CNY)(Mar) 5.89T vs Exp. 4.80T (Prev. 2.23T)
- Chinese Money Supply M2 YY (Mar) 7.0% vs Exp. 7.1% (Prev. 7.0%)
EU/UK
NOTABLE HEADLINES
- UK reportedly races to secure coal required to keep British steel furnaces, according to FT.
- S&P raised Italy’s sovereign rating by one notch to BBB+ from BBB; Outlook Stable.
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