European Market Open: FOMC statement and SEPs were dovish, Chair Powell’s presser was hawkish; European stocks point higher

European bourses are stronger today and trade just off highs; US equity futures also gain, with modest outperformance in the RTY.China drops Google (GOOG) antitrust probe during US trade talks, according to FTDXY trims some post-FOMC gains this morning; NZD plumbs the depths on GDP.Bonds are mixed in the aftermath of the FOMC; Gilts await the BoE.Crude is subdued and precious metals hold an upward bias.Looking ahead, US Jobless Claims, New Zealand Trade Balance (Aug), BoE Announcement, SARB Announcement, Speakers include ECBʼs Nagel, US President Trump & UK PM Starmer press conference. Earnings from FedEx & Lennar.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Fed cut rates by 25bps to 4.00-4.25%, as expected, citing a shift in risk balance. Bowman and Waller joined consensus, calling for a 25bps reduction; new Governor Miran dissented, preferring a 50bps cut.Nine of the 19 Fed officials see two additional cuts in 2025, two see one cut, and six see no more reductions.Fed Chair Powell said he doesn't feel the need to move quickly on rates, and that “you could think of the cut as a risk management cut”, and that decisions will be taken on a meeting-by-meeting approach.Markets saw an initial dovish reaction to the FOMC statement followed by a hawkish reversal heading into and during Chair Powell's press conference. Fed rate cut in December still fully priced in.APAC stocks traded mixed following the choppy reaction to the FOMC meeting; European equity futures indicate a positive cash market open with Euro Stoxx 50 futures up 0.5%.Looking ahead, highlights include US Jobless Claims, New Zealand Trade Balance (Aug), BoE Announcement, Norges Bank Announcement, SARB Announcement, Speakers include ECB’s Lagarde, de Guindos, Nagel & Schnabel, US President Trump & UK PM Starmer press conference, Supply from Spain, France & US, Earnings from FedEx & Lennar.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

White House said it was further extending the TikTok enforcement delay, with the deadline to sell TikTok extended until December 16th.European bourses are mixed; NQ saw fleeting pressure on reports that China ordered tech firms to stop buying NVIDIA’s AI chips; NVIDIA -0.9% pre-market.USD is a touch firmer as markets brace for today's FOMC announcementNVIDIA pressure lifts fixed income to highs pre-FOMC, Gilts outperform after the region’s inflation report which was broadly in-line but as Services cooled a touch.Crude trades with modest losses; Dollar strength weighs on gold.Looking ahead, New Zealand GDP (Q2), US Atlanta Fed GDP, FOMC Announcement, BoC Announcement, BCB Announcement, Speakers including ECB’s Nagel, Fed Chair Powell, BoC's Macklem & US President Trump. Earnings from General Mills.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks traded mixed with global risk sentiment cautious ahead of the crucial FOMC policy decision.White House said it was further extending the TikTok enforcement delay, with the deadline to sell TikTok extended until December 16th.European equity futures indicate a positive cash market open with Euro Stoxx 50 future up 0.3% after the cash market closed with losses of 1.3% on Tuesday.DXY is flat after yesterday's selling pressure. EUR/USD retains a firm footing on a 1.18 handle, GBP awaits UK inflation metrics.USTs and Bunds are steady. Crude futures slightly eased back from this week's peak.Looking ahead, highlights include ECB Wage Tracker, UK Inflation (Aug), EZ HICP Final (Aug), New Zealand GDP (Q2), US Atlanta Fed GDP, FOMC Announcement, BoC Announcement, BCB Announcement, Bank of Indonesia Announcement, ECB’s Lagarde, Nagel, Cipollone, Fed Chair Powell, BoC's Macklem & US President Trump, Supply from Germany & UK, Earnings from General Mills.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Appeals Court declined to allow Trump to remove Federal Reserve Governor Cook; Cook can attend the FOMC's September 16th-17th meeting.US Senate voted 48-47 to confirm US President Trump's Fed nominee Miran to join the Fed board.European bourses opened flat but sentiment dipped a touch to display a mostly negative picture; US equity futures are modestly firmer; NVDA little moved on reports of “lukewarm” demand for its RTX6000D AI chip.DXY in the doldrums as the clock ticks down to the FOMC; GBP was little moved to an in-line Jobs Report.USTs are essentially flat into Retail Sales and supply; Bunds pressured following ZEW and a relatively soft German auction.Crude futures slip with reports of the 19th sanctions package delayed; XAU makes a fresh ATH.Looking ahead, US Retail Sales (Aug) and Industrial Production (Aug), Import Prices (Aug), Atlanta Fed GDP, Canadian CPI (Aug) & ECB’s Escriva, Supply from the US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks traded mixed amid some cautiousness ahead of upcoming risk events and despite the fresh record levels on Wall St.US Appeals Court declined to allow Trump to remove Federal Reserve Governor Cook; Cook can attend the FOMC's September 16th-17th meeting.US Senate voted 48-47 to confirm US President Trump's Fed nominee Miran to join the Fed board.European equity futures indicate an uneventful cash market open with Euro Stoxx 50 future +0.1% after the cash market closed with gains of 0.9% on Monday.DXY is a touch softer, extending on yesterday's downside. JPY marginally outperforms, whilst antipodeans lag.Crude futures marginally extended on the prior advances. 10yr UST futures plateaued overnight after catching a bid yesterdayLooking ahead, highlights include UK Jobs Report (Jul), Italian CPI Final (Aug), EZ Industrial Production (Jul), Labour Costs (Q2), German ZEW Survey (Sep), US Retail Sales (Aug) and Industrial Production (Aug), Import Prices (Aug), Atlanta Fed GDP, Canadian CPI (Aug), RBA's Hauser & ECB’s Escriva, Supply from Germany, UK & US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US and China day two talks are underway; overnight, FT reported that there has been a lack of progress, potentially reducing the odds of a Beijing summit. Recently, US Treasury Secretary Bessent said the US and China made good progress on technical details.Crude benchmarks are higher amid a softer USD and after President Trump said he is ready to impose sanctions on Russia, once NATO stops buying Russian oil. Most recently, Russia's Kremlin says NATO is fighting Russia.NVIDIA hit in the pre-market, weighing on the NQ and broader sentiment, as China said NVIDIA violated antitrust laws; European bourses off best, but still firmer, Euro Stoxx 50 +0.6%.Fitch downgraded France to A+ (prev. AA-), sparking modest OAT-Bund widening though levels remain orderly. EUR is unreactive, GBP leads with the DXY softer.Gold had an initial upward bias with the focus on geopols, though off best. Base metals capped by soft Chinese data.Looking ahead, NY Fed Manufacturing (Sep), Speakers including ECB's Schnabel, Rehn & Lagarde.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks traded mixed, with the region somewhat cautious as participants digested disappointing Chinese activity data.The lack of progress in US talks with China on tariffs and fentanyl is said to have reduced the chances of a Beijing summit, according to the FT.Fitch cut France’s sovereign rating from AA- to A+; Outlook Revised to Stable from Negative; OATs -11 ticks.European equity futures indicate a slightly positive cash market open with Euro Stoxx 50 futures up 0.3% after the cash market closed with gains of 0.1% on Friday.In FX, DXY is steady and FX markets are contained heading into a week, which is set to be dominated by central bank activity.US President Trump said he is ready to impose major sanctions on Russia when all NATO nations have agreed and started to do the same thing, and when all NATO nations stop buying oil from Russia.Looking ahead, highlights include German Wholesale Price Index (Aug), NY Fed Manufacturing (Sep), Speakers including ECB's Schnabel, Rehn & Lagarde.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Treasury Secretary Bessent will meet with Chinese Vice Premier He and other senior Chinese officials next week in Madrid, while Bessent and He are to discuss key US-China national security, economic and trade issues.US equity futures are lower across the board, RTY lags. European bourses began marginally firmer, but have since waned.USD attempts to recover from the pressure seen on Thursday's data, DXY at highs, while the JPY lags.Fixed income is in the red, though USTs are set to end the week near-enough unchanged. Gilts are the relative outperformer post-GDP.Crude began in the red, extending to a new WTD low before bouncing and recouping some of Thursday's pressure. Metals firmer despite the USD strength.Looking ahead, highlights include US University of Michigan Prelim (Sep), CBR Announcement, Credit Rating Reviews for France & Spain. US President Trump on Fox.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US Treasury Secretary Bessent will meet with Chinese Vice Premier He and other senior Chinese officials next week in Madrid, while Bessent and He are to discuss key US-China national security, economic and trade issues.US President Trump's administration asked the US appeals court to pause a ruling that blocked the removal of Fed's Cook.ECB rate cut debate is said to not be over, but October is seen as too soon, and the next real discussion is more likely in December, according to Reuters sources.APAC stocks were mostly higher following the gains on Wall St; European equity futures indicate a marginally positive cash market open with Euro Stoxx 50 futures up 0.2% after the cash market closed with gains of 0.5% on Thursday.Looking ahead, highlights include German CPI Final (Aug), UK GDP (Jul), French Final CPI (Aug), Spanish Final CPI (Aug), US University of Michigan Prelim (Sep), CBR Announcement, ECB Publication of ECB staff macroeconomic projections for the euro area, Credit Rating Reviews for France & Spain.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk