- US stocks declined on Friday to post a weekly loss across major US indices after Tuesday's reminder that inflation is still rife and resulting in the likelihood that the Fed will have to act more aggressively in the months ahead.
- China reported 1,189 new COVID-19 cases for Saturday which was an increase from 718 new cases on Friday, while China’s Chengdu lifted the lockdown for the entire city and Dalian will also lift the citywide lockdown effective this Monday.
- ECB’s Lane said there will probably be several more rate hikes this year and early next year, while he noted signs that inflation will come down but not just yet and said that a recession cannot be ruled out.
- OPEC+ output in August fell 3.58mln bpd short of the quota, according to delegates cited by Argus. It was also reported that Iraq’s Basrah Oil Company said oil exports returned to normal after being halted on Friday due to a terminal spillage, according to Reuters.
- Looking ahead, highlights include Speeches from RBA's Kearns & RBNZ Governor Orr, Holiday Closures in Japan & UK.
LOOKING AHEAD
- Speeches from RBA's Kearns & RBNZ Governor Orr, Holiday Closures in Japan & UK.
- Click here for the Week Ahead preview
US TRADE
EQUITIES
- US stocks declined on Friday to post a weekly loss across major US indices after Tuesday's reminder that inflation is still rife and with the result being the Fed will likely have to act more aggressively in the months ahead.
- SPX -0.72% at 3,873, NDX -0.55% at 11,861, DJIA -0.45% at 30,822, RUT -1.48% at 1,798.
- Click here for a detailed summary.
NOTABLE HEADLINES
- Group of regulators appointed by US President Biden are mulling new rules for dealing with a crisis for large regional banks, according to WSJ.
- Hurricane Fiona made landfall in Puerto Rico which knocked out power and threatens to cause catastrophic flooding, according to AFP. Furthermore, NHC later announced that Fiona was moving just west of Puerto Rico and heading for the eastern Dominican Republic, according to NHC.
FIXED INCOME
- T-note (Z2) futures settled 8+ ticks higher at 114-24; Treasuries rallied in the wake of the softer UoM inflation expectations, with the belly leading, ahead of the upcoming FOMC.
COMMODITIES
- OPEC+ output in August fell 3.58mln bpd short of the quota, according to delegates cited by Argus.
- Iraq’s Basrah Oil Company said oil exports returned to normal after being halted on Friday due to a terminal spillage, according to Reuters.
- Kuwait produces more than 2.8mln bpd and has plans to increase oil output whenever the market needs it, while Kuwait currently produces 650mln cubic feet of gas per day and plans to raise it to 1bln cubic feet, according to Kuwaiti Petroleum Corporation’s CEO, cited by Reuters.
GEOPOLITICS
RUSSIA-UKRAINE
- US President Biden warned Russian President Putin against changing the face of the war by using tactical nuclear or chemical weapons in Ukraine, according to an interview on CBS’s 60 Minutes.
- US Joint Chief of Staff chairman General Milley said during a visit to a military base in Poland that it is still unclear how Russia will react to the battlefield setbacks in Ukraine and now is the time for increased vigilance and preparedness, according to Reuters.
- IAEA said one of the Zaporizhzhia nuclear power plant’s regular external power lines has been repaired and the plant is receiving electricity directly from the national grid, while it added that although there has not been any recent shelling at or near the plant, it continues to occur in the wider area, according to Reuters.
CHINA-TAIWAN
- Taiwan said China continues its military activities around the island and that it detected 20 Chinese aircraft and 5 Chinese ships operating around Taiwan on Saturday, according to Reuters.
OTHER
- US Secretary of State Blinken spoke with Azerbaijani President Aliyev and urged him to adhere to the ceasefire, disengage military forces and work to resolve outstanding issues with Armenia, according to Reuters.
- US House Speaker Pelosi strongly condemned ‘illegal’ attacks by Azerbaijan on Armenia and said that the attacks must stop, while she added that US influence and leverage should be used to show Armenian sovereignty is a priority, according to Reuters.
- Azerbaijan called US House Speaker Pelosi’s comments about the Azeri-Armenian conflict “unsubstantiated and unfair”, while it added that such remarks do not serve to strengthen the fragile peace in the region and instead escalate tensions, according to Reuters.
- Russian President Putin held phone talks with Kyrgyz and Tajik leaders following the border conflict and Putin called on the sides to avoid escalation, as well as take measures to resolve the situation exclusively by peaceful means, according to Reuters.
ASIA
NOTABLE HEADLINES
- China reported 1,189 new COVID-19 cases for Saturday which was an increase from 718 new cases on Friday, according to Reuters.
- China’s Chengdu lifted the lockdown for the entire city and Dalian will also lift the citywide lockdown effective this Monday, according to Bloomberg.
- PBoC is working to promote the interconnection between the digital yuan and other electronic tools to enable payments via QR codes, according to Bitcoin Dynamic.
- China’s Global Times stated that economists urge US regulators to serve market fairness and not let their work be trained with political factors as they are about to begin reviewing audit files of Chinese companies.
- US tsunami warning system issued a tsunami threat in Taiwan on Sunday morning following a magnitude 7.2 earthquake.
- Japan’s weather agency issued a special typhoon warning for the Kagoshima prefecture in southern Japan on Saturday, according to Reuters. It was later reported that the typhoon made landfall and millions were told to evacuate homes, according to FT.
EU/UK
NOTABLE HEADLINES
- UK PM Truss will conduct a bilateral meeting with US President Biden at the UN General Assembly on Wednesday instead of meeting in Downing Street on Sunday, according to a statement cited by Reuters.
- UK PM Truss agreed with Irish PM Martin that an opportunity exists for the UK and the EU for a negotiated Brexit resolution to the Northern Ireland protocol, according to RTE.
- UK PM Truss’s chief of staff Fullbrook said he is cooperating with the FBI regarding an investigation into a Conservative Party donor charged with illegally providing campaign donations to a former Puerto Rico governor, although Fullbrook denied any wrongdoing, according to FT.
- ECB’s Lane said there will probably be several more rate hikes this year and early next year, while he noted signs that inflation will come down but not just yet and said that a recession cannot be ruled out, according to Reuters.
- ECB’s Nagel said the ECB are ‘a good way off’ from where rates should be and rates will need to rise a lot more to get inflation under control, although is confident that inflation rates will fall after a tough winter, according to Bloomberg.
- EU is set to withhold EUR 7.5bln of funding from Hungary due to rule of law violations regarding corruption in awarding public contracts, according to FT.
Editor:Callie
Proofreading:AUREL
Reprinted from Zero Hedge, the copyright all reserved by the original author.