US Market Open: DXY is pressured as Chair Powell faces a criminal investigation; Banking names hit after Trump’s move for cap credit

European bourses are tentative whilst US equity futures are modestly lower as markets await US CPI.DXY is flat/incrementally firmer, USD/JPY briefly topped 159.00 as Takaichi eyes a snap election; some modest strength in JPY overnight, on Finance Minister Katayama who said US Treasury Secretary Bessent shares the concerns over the weak JPY.Bearish bias from APAC trade, driven by JGBs. Bunds mildly pressured on a weak Bobl outing.Spot gold is a little lower awaiting US CPI; Crude climbs amid a Black Sea tanker incident and ongoing Iranian focus.Looking ahead, highlights include US NFIB (Dec), US CPI (Dec), Average Weekly Prelim Estimate ADP, EIA STEO, Speakers include Fed’s Barkin and Musalem. Supply from the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Trump admin nears a deal with Taiwan; trade deal would cut tariffs and include a commitment from TSMC (TSM) to build more manufacturing plants in the US.USD/JPY initially saw weakness following comments by Japan’s FinMin Katayama stating that US Treasury Secretary Bessent shares the concerns over the weak JPY; PM Takaichi confirmed her intent to hold snap elections, Kyodo reports.US President Trump has been briefed on a range of military and covert options against Iran, according to CBS News; however, no final decision has been made, and diplomatic channels remain open.European equity futures are indicative of a positive open with the Euro Stoxx 50 future +0.2% after cash closed +0.3% on Monday.Looking ahead, highlights include US NFIB (Dec), US CPI (Dec), Average Weekly Prelim Estimate ADP, EIA STEO, Speakers include BoE's Bailey, Fed’s Barkin and Musalem. Supply from the UK, Italy, Germany, US. Earnings from JPMorgan, Delta Air, Bank of New York Mellon.Click for the Newsquawk Week Ahead.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Federal prosecutors have opened a criminal investigation into Fed Chair Powell over the central bank’s renovation of its Washington headquarters, and whether Powell lied to Congress about the scope of the project, NYT reported, citing officials.US President Trump said Iran has proposed negotiations after he threatened action against Tehran for the crackdown on protesters, AP News reported.US President Trump is to be briefed on Tuesday on "some kinetic and many non-kinetic" options in Iran, Politico reports, citing two administration officials.European bourses are broadly in the red alongside pressure in US equity futures; Banking names hit after Trump’s move to cap credit card interest rates.DXY is pressured as Chair Powell faces a criminal investigation, NZD benefits from strength in the underlying metals prices.US yield curve steepens on the Fed independence challenge, supply ahead.Spot gold printed an ATH above USD 4.6k/oz, with upside driven by Fed independence woes and geopols; Crude is on the backfoot despite rising tensions re. Iran.Looking ahead, speakers include Fed's Bostic, and Barkin. Supply from the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Federal prosecutors have opened a criminal investigation into Fed Chair Powell over the central bank’s renovation of its Washington headquarters, and whether Powell lied to Congress about the scope of the project, NYT reported, citing officials.Fed Chair Powell said the DoJ served the Fed with subpoenas, threatening indictment; Powell said he will continue to do the job.US President Trump said Iran has proposed negotiations after he threatened action against Tehran for the crackdown on protesters, AP News reported.US President Trump is to be briefed on Tuesday on "some kinetic and many non-kinetic" options in Iran, Politico reports, citing two administration officials.APAC stocks were entirely in the green, following on from the positivity seen stateside during Friday's session. European equity futures are indicative of an uneventful open, with the Euro Stoxx 50 future flat after cash closed +1.6% on Friday.Looking ahead, highlights include Swiss Consumer Confidence (Dec), Speakers include ECB's de Guindos, Fed's Bostic, and Barkin. Supply from the US.Click for the Newsquawk Week Ahead.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump cancels a second attack on Venezuela, suggesting the two countries “are working well together”.US President Trump said companies will spend at least USD 100bln in Venezuela, and he will be meeting oil executives today.European equities open firmer; Rio Tinto (-2%) & Glencore (+8%) resume merger talks; US equity futures trade tentatively ahead of NFP.DXY moves higher whilst USTs trade steady ahead of key US data; JPY underperforms.Crude pares back some of Thursday's gains as Trump cancels a second wave of attacks in Venezuela; spot gold trades sideways.Looking ahead, highlights include US Jobs Report (Dec), Potential SCOTUS tariff decision, University of Michigan Sentiment Prelim (Jan), Canadian Jobs Report (Dec), Speakers include ECB's Lane, Fed's Kashkari & Barkin.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks followed suit to the mixed performance on Wall Street with the regional bourses predominantly in the green, albeit with traders bracing for the US Non-Farm Payrolls report and a potential Supreme Court's ruling on tariffs.US President Trump warned that the US will hit Iran hard if they kill rioters.US President Trump said companies will spend at least USD 100bln in Venezuela, and he will be meeting oil executives today.Big tech was spared strict rules in the EU digital rule overhaul, with big tech to be subject to a voluntary framework.European equity futures indicate a positive cash market open with Euro Stoxx 50 futures up 0.4% after the cash market closed with losses of 0.3% on Thursday.Looking ahead, highlights include German Industrial Output (Nov), Norwegian CPI (Dec), US Jobs Report (Dec), Potential SCOTUS tariff decision, University of Michigan Sentiment Prelim (Jan), Canadian Jobs Report (Dec), Speakers include ECB's Lane, Fed's Kashkari & Barkin.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump's team is working up a sweeping plan to control Venezuelan oil for years to come, according to WSJ.US President Trump posted that Venezuela is going to be purchasing only American-made products with the money received from the new oil deal with the US.European and US equity futures are broadly on the backfoot; China is to reportedly approve some NVIDIA H200 purchases as soon as this quarter.DXY incrementally firmer awaiting further jobs data after an early Challenger Layoffs release; Antipodeans lag.Fixed income faltered as risk sentiment saw a fleeting recovery; Spain and France auctions passed without issue.Crude rebounds following after recent losses with newsflow quiet; Precious metals on the backfoot once again in quiet newsflow.Looking ahead, highlights include US Initial Jobless Claims, RevelioLabs Total US Nonfarm Employment Data, Comments from Fed's Miran.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks eventually traded mostly negative following a similar handover from Wall Street, where the S&P 500 and DJIA pulled back from record highs.USD/JPY saw two-way trade with early upside as Japanese yields ticked lower following softer-than-expected wage data from Japan, but then reversed course as the negative risk tone in Japan spurred some mild haven currency flows.US President Trump's team is working up a sweeping plan to control Venezuelan oil for years to come, according to WSJ.US President Trump posted that Venezuela is going to be purchasing only American-made products with the money received from the new oil deal with the US.European equity futures indicate a softer cash market open with Euro Stoxx 50 futures -0.4% after the cash market closed with losses of 0.1% on Wednesday.Looking ahead, highlights include Swedish CPI (Dec), Swiss CPI (Dec), US Initial Jobless Claims, RevelioLabs Total US Nonfarm Employment Data, Chinese Inflation (Dec), SNB Minutes, ECB SCE, BoE DMP, Comments from ECB's de Guindos, Supply from Spain & France.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Crude pressured after US President Trump announced that Venezuelan authorities will be turning over 30mln-50mln barrels of oil to the US.China's Commerce Ministry announced an anti-dumping probe into Japan Dichlorosilane imports; a key material used during chip manufacturing.European and US equity futures are mixed; NVIDIA (NVDA) CEO says Chinese demand for its AI chips is quite high.Choppy but contained FX trade as markets await economic data; Aussie initially pressured on inflation but now flat, given headline & core metrics remain above the RBA’s 2-3% target.Global fixed paper are firmer as the European risk tone slips; Bunds digest EZ HICP and supply.Looking ahead, highlights include, US ADP, ISM Services PMI (Dec), JOLTS (Nov), Comments from Fed's Bowman.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks traded somewhat mixed as momentum began to wane despite the fresh record levels on Wall Street.Nikkei 225 lagged amid Japan's frictions with China after the latter imposed export controls on dual-use items to Japan.Spot gold pulled back from resistance at the USD 4,500/oz level, with some mild selling pressure seen across the commodities complex.US President Trump announced that Venezuelan authorities will be turning over 30mln-50mln barrels of oil to the US.Russia sent a submarine to escort a tanker the US tried to seize off Venezuela, according to WSJ.Looking ahead, highlights include German Retail Sales (Nov), Italian CPI Prelim (Dec), Eurozone HICP Flash (Dec), US ADP, ISM Services PMI (Dec), JOLTS (Nov), Comments from Fed's Bowman, Supply from Germany & UK.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk