EU Market Open: APAC stocks sold off whilst European and US futures stabilised; US CPI ahead

Gulf Foreign Ministers plan to meet with their Iranian counterpart in an effort by Oman and Iran to secure a deal on shipping through the Strait of Hormuz, according to FT.Saudi Crown Prince MBS called President Trump twice on Thursday, urging him to launch strikes against Houthis, but Trump declined.IEA OMR sees 2026 world oil demand falling more than prior due to the impasse in US-Iran talks.US equity futures are bid; Oracle shares gain after a strong earnings report.DXY flat heading into US CPI; G10s are mixed against the USD.Fixed income benchmarks stabilise following Thursday's selloff; Gilts little moved after upbeat growth figures.Energy benchmarks fall on hopes of a Hormuz deal.Looking ahead, highlights include US CPI (Aug), US University of Michigan Survey Prelim (Sep), CBR Announcement. Speakers include ECB’s Lagarde & Lane. Earnings from Kroger.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump told reporters that the Iran war could end before the election, and there is no chance the Iran war will last through the rest of his term.Saudi Crown Prince MBS called President Trump twice on Thursday, urging him to launch strikes against Houthis, but Trump declined.US senior official told Israel's Channel 13 that Iran is planning a "major attack" involving Israel due to the pressure it is under.Crude futures paused overnight after surging yesterday, which saw WTI breach USD 104/bbl, and Brent climb to just shy of USD 110/bbl.APAC stocks were pressured, with global risk sentiment weighed by a further surge in oil prices; European equity futures indicate a flat cash market open.Looking ahead, highlights include UK GDP (Jul), US CPI (Aug), US University of Michigan Survey Prelim (Sep), IEA OMR, CBR Announcement. Speakers include US President Trump, ECB’s Lagarde & Lane. Earnings from Kroger.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump said he thinks war with Iran will end immediately after the election and will do much more than a nuclear deal.US President Trump said he will give a 'Trump dividend' to every adult in the US of USD 5,000 if Republicans win the Midterm elections, while he added that the dividend must be spent in the US.US equity futures lack a clear direction as markets await US PPI.DXY rangebound; EUR waits for the ECB rate decision, NOK slightly softer following cooler-than-expected core CPI.Fixed income benchmarks continue to be at the mercy of higher energy prices (Brent +1.3%).Looking ahead, highlights include US PPI (Aug), Jobless Claims (Sep/05), Existing Home Sales (Aug), Atlanta Fed GDP (Q3), ECB Announcement, CBRT Announcement, OPEC MOMR. Speakers include ECB President Lagarde. Supply from the US. Earnings from Oracle & Adobe.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump said he thinks war with Iran will end immediately after the election and will do much more than a nuclear deal.US President Trump said he will give a 'Trump dividend' to every adult in the US of USD 5,000 if Republicans win the Midterm elections, while he added that the dividend must be spent in the US.Crude futures took a breather after extending their gains yesterday alongside the current backdrop of escalating US/Iran and Saudi/Yemen tensions, which lifted Brent crude north of the USD 100/bbl level.10yr UST futures remained subdued after yields rose alongside higher oil prices and following the Treasury's long-end buyback announcement of a maximum of USD 6bln of 10yr-20yr nominal coupons on Thursday.APAC stocks were mostly lower following the losses stateside; European equity futures indicate a flat/firmer cash market open.Looking ahead, highlights include German Final CPI (Aug), Norwegian CPI (Aug), Swedish GDP (Jul), US PPI (Aug), Jobless Claims (Sep/05), Existing Home Sales (Aug), Atlanta Fed GDP (Q3), ECB Announcement, CBRT Announcement, OPEC MOMR. Speakers include US President Trump and ECB President Lagarde. Supply from the UK, Italy, and the US. Earnings from Oracle & Adobe.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.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