EU Market Open: Another round of hostilities between the US and Iran moves crude benchmarks higher; JPY continues to strengthen

US forces struck multiple Iranian tankers tied to the IRGC in response to more attempted missile attacks on a US Navy warship; Iran launched missiles at targets in response to US strikes on tankers, while it launched at least 20 missiles at bases in Jordan.IRGC had warned that oil tanker crews in Kuwaiti and Bahraini ports would be targeted in light of the US Army targeting several Iranian oil tankers.US equity futures are slightly softer; Google announces a EUR 13bln AI infrastructure in Finland.DXY rebounds off lows but remains under pressure; JPY continues to gain after daring comments from US Treasury Secretary Bessent.Fixed income benchmarks falter as Brent regains the USD 100/bbl mark, with focus on the Treasury buyback announcement.Looking ahead, highlights include US ADP Employment Change Weekly, US Treasury Long-End Bond Buybacks Announcement, NBP Announcement, EIA STEO. Comments from ECB's Lagarde. Supply from the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US forces struck multiple Iranian tankers tied to the IRGC in response to more attempted missile attacks on a US Navy warship; Iran launched missiles at targets in response to US strikes on tankers, while it launched at least 20 missiles at bases in Jordan.IRGC had warned that oil tanker crews in Kuwaiti and Bahraini ports would be targeted in light of the US Army targeting several Iranian oil tankers.Crude futures extended recent gains, with upside facilitated after the US and Iran exchanged another round of retaliatory strikes.DXY was little changed after the choppy mood on Tuesday; USD/JPY trickled lower beneath the 154.00 level amid the ongoing BoJ rate hike expectations.APAC stocks traded mixed as the region attempted to shrug off the weak lead from Wall Street; European equity futures indicate a lower cash market open.Looking ahead, highlights include US ADP Employment Change Weekly, US Treasury Long-End Bond Buybacks Announcement, NBP Announcement, EIA STEO. Comments from ECB's Lagarde. Supply from Germany & the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Yemeni Houthis confirm that they hit a Saudi Aramco oil refinery and targeted an air base in retaliation for recent Saudi strikes.Canada’s retaliatory tariffs on US goods took effect as scheduled, while US President Trump called for a halt to US sales of Bombardier aircraft.US equity futures trade lower as participants return from holiday; Novartis suffers after key drug misses primary endpoints.USD helped by higher energy prices; JPY continues to firm, helped by strong growth and wage data.Fixed income benchmarks fall, with Gilts underperforming as Amazon (AMZN) files for GBP-denominated debt.Crude complex rises following the Saudi and Yemeni Houthi update.Looking ahead, highlights include US ADP Employment Change Weekly. Speakers include ECB's Elderson, BoE's Bailey, Ramsden, Greene & Taylor. Supply from the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Iran warned that economic warfare will be met with a maritime exclusion zone from the Persian Gulf to the blockade perimeter, and said it has the ability to strike ships participating in the US blockade.Yemeni forces reportedly launched ballistic missile and drone attacks on targets in Saudi Arabia, including around Khamis Mushait, Abha airport and King Khalid Airbase.Canada’s retaliatory tariffs on US goods took effect as scheduled, while US President Trump called for a halt to US sales of Bombardier aircraft.USD/JPY extended declines and briefly dipped beneath the 153.00 level as the yen continues to strengthen amid BoJ rate hike expectations; Japanese GDP was revised higher and wage growth beat expectations. APAC stocks traded mixed in the absence of a lead from Wall Street; European equity futures indicate a flat cash market open.Looking ahead, highlights include German Trade Balance (Jul), US ADP Employment Change Weekly. Speakers include ECB's Elderson, BoE's Bailey, Ramsden, Greene & Taylor. Supply from the Netherlands, Germany & the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US launched strikes against three Iranian crude oil tankers on Saturday, which destroyed one. A move in retaliation for the IRGC targeting US Navy warships with ballistic missiles. Iran’s navy also targeted three oil tankers that were travelling through unauthorised routes in the Strait of Hormuz.Iran's top security official Rezaei said Iran and Oman will sign agreed Strait of Hormuz passage maps in the coming days.APAC stocks traded mixed; European equity futures are indicative of a slightly weaker open.DXY trades lacklustre in holiday-thinned conditions; G10s are steady against the USD.Crude benchmarks are firmer this morning following US-Iran tit-for-tat strikes. Elsewhere, major OPEC+ countries stuck with the plan to keep oil output quotas unchanged for October.Looking ahead, highlights include, German Industrial Production (Jul), Swedish CPI (Aug), EZ GDP (Q2), EZ Employment Change (Q2).Holiday: Labor Day in the US and Canada.Desk Schedule: Desk will be open as usual on Sunday, 6th September until 18:00BST/13:00EDT on Monday, 7th September, due to the US market closure. Thereafter, the desk will resume normal service from 22:00BST/17:00EDT.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Norway's sovereign wealth fund sent a letter to the finance ministry recommending the reduction of holdings of US Treasuries from 70% to 50%, according to FT.US equity futures mixed; Volkswagen benefits after the approval of cost-cutting plan.USD slightly firmer heading into the jobs report; JPY gives back some of Thursday's gains.Fixed income benchmarks muted; USTs unfazed following the FT report that Norway may reduce holdings.Energy benchmarks softer amid light geopolitical updates.Looking ahead, highlights include US Jobs Report (Aug), Canadian Jobs Report (Aug).Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Crude futures kept afloat but with gains limited following the previous day's two-way trade and with a lack of major new geopolitical developments.USD/JPY recouped some losses after sliding as the yen recently outperformed due to intervention risks and hawkish BoJ rate hike bets.Norway's USD 2.3tln sovereign wealth fund manager has proposed an overhaul of its government bond portfolio that could see it cut its holdings of US Treasuries by about USD 80bln, as it looks to other types of debts to try to boost returns, according to FT.APAC stocks took impetus from the positive global risk sentiment and lower yield environment; European equity futures indicate a flat cash market open.Looking ahead, highlights include German Factory Orders (Jul), EZ Retail Sales (Jul), US Jobs Report (Aug), Canadian Jobs Report (Aug). Speakers include BoE Governor Bailey & ECB’s Lane.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump said regarding Iran that the US is winning that one very big and controls the Hormuz Strait.Russian President Putin said that Russia and Ukraine should agree first and noted that there is an opportunity to reach a peace agreement.Global equities broadly firmer; Broadcom slips after Q4 revenue and margin outlooks missed estimates.DXY lower; JPY outperforms, CHF strengthens after hotter-than-expected inflation.Fixed income benchmarks steady; however, US 10yr holds above 4.75%.Energy benchmarks reverse earlier downside following constructive Putin comments.Looking ahead, highlights include US Trade Balance (Jul), Jobless Claims, S&P Services and Composite PMI Final (Aug), ISM Services PMI (Aug), Atlanta Fed GDP (Q3), Canadian Trade Balance (Jul). Speakers include Fed’s Waller, Hammack & Goolsbee.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump said the renewed campaign against Iran would not continue for too long and that oil prices would come down; Trump added the US was prepared to conduct another attack on Iran.US President Trump said he has very productive things to talk about with China President Xi, adding it "Will be very exciting and great".Crude futures lacked firm direction after marginally gaining in two-way trade yesterday amid somewhat mixed comments from US President Trump.USD/JPY extended on the prior day's decline with the pair breaching the 158.00 level to the downside after the Japanese currency was supported on Wednesday.APAC stocks eventually traded mixed after initially posting gains; European equity futures indicate a marginally negative open.Looking ahead highlights include Swiss CPI (Aug), GDP (Aug), Global S&P Services and Composite PMI Final (Aug), EU PPI (Jul), US Challenger Layoffs (Aug), Trade Balance (Jul), Jobless Claims, ISM Services PMI (Aug), Atlanta Fed GDP (Q3), Canadian Trade Balance (Jul). Speakers include Fed’s Waller, Hammack & Goolsbee, RBA’s Jones & Hunter. Supply from Spain & France.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Central Command said forces successfully completed a wave of strikes against Iranian military targets on September 1st.IRGC said it targeted US bases in Iraq, with missiles and drones. Iran's army also launched drone attacks on the US base in Bahrain while the IRGC added that two tankers were blown up after striking mines in the Strait.Global equities continue to pull back, with NQ futures falling below 29k.USD firms against most peers; NZD underperforms after RBNZ fails to impress hawks, JPY outperforms after BoJ hawk Takata.USTs are flat, whilst Bunds and Gilts are pressured by elevated gas prices.Crude takes a breather following another night of US-Iran hostilities; metals feel no reprieve.Looking ahead, highlights include US Factory Orders (Jul), ADP Employment Change (Aug), New Zealand Terms of Trade (Q2), BoC Announcement, Fed Beige Book. Comments from Fed's Williams, BoC’s Macklem & Rogers. Earnings from Broadcom, Hewlett Packard Enterprise & Snowflake.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk