Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks and bonds tumbled on Friday while the Dollar surged in response to the strong US jobs report which saw traders pare Fed rate cut bets. The NFP rose above all analyst expectations while the unemployment rate surprisingly slipped. Money markets started to unwind Fed rate cut bets with only 28bps of easing priced throughout the year, implying just a 12% probability of a second 25bps rate cut. The data also saw a lot of banks revise their Fed calls, notably Bank of America no longer expecting any rate cuts this year.
Looking ahead, highlights include Australian MI Inflation Gauge & Chinese Trade Data, Japanese Markets are Closed for Coming of Age Day.

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Highlights include Australian MI Inflation Gauge & Chinese Trade Data, Japanese Markets are Closed for Coming of Age Day.
Click for the Newsquawk Week Ahead.

US TRADE

US stocks and bonds tumbled on Friday while the Dollar surged in response to the strong US jobs report which saw traders pare Fed rate cut bets. The NFP rose above all analyst expectations while the unemployment rate surprisingly slipped. Money markets started to unwind Fed rate cut bets with only 28bps of easing priced throughout the year, implying just a 12% probability of a second 25bps rate cut. The data also saw a lot of banks revise their Fed calls, notably Bank of America no longer expecting any rate cuts this year.
SPX -1.54% at 5,827, NDX -1.57% at 20,848, DJI -1.63% at 41,938, RUT -2.22% at 2,189.
Click here for a detailed summary.

DATA RECAP

US Non-Farm Payrolls (Dec) 256.0k vs. Exp. 160.0k (Prev. 227.0k, Rev. 212k), two-month net revisions -8k (prev. +56k)
US Unemployment Rate (Dec) 4.1% vs. Exp. 4.2% (Prev. 4.2%)
US Average Earnings YY (Dec) 3.9% vs. Exp. 4.0% (Prev. 4.0%)

Iran shipped out nearly 3mln bbls of oil stockpiled in China in which the proceeds could reportedly be used to fund its allied militias in the Middle East, according to WSJ.

MIDDLE EAST

Israeli PM Netanyahu is to send the head of Mossad to Qatar for hostage talks, according to the PM’s office cited by Reuters.
Israeli PM Netanyahu spoke with US President Biden on Sunday in which they discussed negotiations for a Gaza ceasefire and a hostage deal, while Biden stressed the immediate need for a ceasefire and return of hostages, as well as the need for a surge in humanitarian aid enabled by a stoppage in the fighting.
Syria’s de facto ruler Al-Sharaa said he discussed with Lebanon’s caretaker PM Mikati the issue of Syrian deposits in Lebanese banks, while Mikati said they will work with Syria to secure the land borders and follow up on land and sea border delineation.
Western and Arab foreign ministers and diplomats began a regional conference with Syrian Foreign Minister Shibani in Riyadh on Sunday.
German Foreign Minister said Germany proposes a smart approach to sanctions so the Syrian population gets relief and a quick dividend from the transition of power, while Germany will provide an additional EUR 50mln to Syria for food, emergency shelters and medical care.

RUSSIA-UKRAINE

Ukrainian President Zelensky said Ukrainian soldiers captured North Korean military personnel in Russia’s Kursk region, while he later commented that Kyiv is ready to hand over North Korean soldiers if North Korean leader Kim can organise their exchange for Ukrainians captive in Russia.
Russia took control of the settlements of Shevchenko, Kalynove and Yantarne in eastern Ukraine, according to TASS.
Russian Foreign Ministry said new US sanctions against the energy sector are an effort to harm Russia’s economy at the cost of risking destabilisation of global markets and Russia will respond to Washington’s hostile actions.
US President Biden said on Friday that as long as they keep Western Europe united on Ukraine, there is a real chance Ukrainians can prevail, while he added that Russian President Putin is in tough shape right now and it is important that Putin does not have more breathing room to do what he is doing.
US President-elect Trump’s incoming National Security Adviser Waltz said he expects a call between Trump and Russian President Putin in the coming days and weeks, according to an ABC News interview.

OTHER

Denmark’s government sent private messages to the Trump team expressing a willingness to discuss increased US military and security presence in Greenland, according to Axios.
Japan will test hypersonic missile tracking with space sensors and will deploy sensors which is set for a first launch in fiscal 2025 to resupply the International Space Station, according to Nikkei.

NOTABLE HEADLINES

PBoC Governor Pan met with BoE Governor Bailey in Beijing on Saturday and discussed financial stability and cooperation, while Pan also met with top executives from HSBC, Standard Chartered and the London Stock Exchange. It was separately reported that UK and China will explore a wealth connect program and they announced the launch of an OTC bond business with China to launch a sustainable government bond in London this year.
South Korean impeached President Yoon’s lawyer said Yoon will be absent from the first hearing in the impeachment trial out of safety concerns.

NOTABLE HEADLINES

UK Chancellor Reeves said the fiscal rules set in the October Budget are non-negotiable and that there undoubtedly have been moves in global financial markets. Reeves said that they will take action to ensure that they meet fiscal rules and she is committed to having one Budget a year which will be in Autumn. Reeves also announced that the UK will earn GBP 600mln from five-year agreements made with China.
Brussels Airlines said it will need to cancel a significant number of flights at Brussels Airport on Monday due to a strike.
Fitch affirmed Austria at AA+; outlook revised to negative, while it stated the outlook for Austria’s economy remains subdued with a forecast of weak real GDP growth of 0.8% for 2025.