Wall Street extended on gains for a sixth consecutive win streak with Trump expected to ease tariffs for US automakers - Newsquawk Asia-Pac Market Open

• US stocks grinded higher for large parts of the US session and the major indices extended on their recent gains with both the S&P 500 and Dow notching a sixth consecutive win streak as tariffs remained in the spotlight with US President Trump expected to ease tariffs for US automakers at a speech in Michigan commemorating his first 100 days in office. There were also comments from other officials including US Commerce Secretary Lutnick who suggested a trade deal was reached with a country which he didn't name until approval from the other side, although FBN's Gasparino later suggested, citing word on Wall St, it could either be India or South Korea. Nonetheless, the gains in stocks were mild with upside limited as participants also digested data releases in which JOLTS printed below the bottom end of analyst estimates, while consumer confidence also disappointed and tumbled beneath expectations with responses detailing tariff concerns.
• USD clawed back some of the losses seen on Monday and gained against all G10 peers with the DXY unfazed by disappointing data releases in which US Consumer Confidence deteriorated for a fifth consecutive month in April and job openings fell to a six-month low with the largest decrease stemming from transportation, warehousing, and utilities. Meanwhile, tariffs remained in focus with President Trump reportedly signing 3 orders on auto manufacturing and will announce the new car tariff climbdown in Michigan.
• Looking ahead, highlights include South Korean & Japanese Industrial Production & Retail Sales, New Zealand ANZ Business Survey, Australian CPI, Chinese Official PMIs & Caixin Manufacturing PMI, Speech from US President Trump.

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LOOKING AHEAD

• Highlights include South Korean & Japanese Industrial Production & Retail Sales, New Zealand ANZ Business Survey, Australian CPI, Chinese Official PMIs & Caixin Manufacturing PMI, Speech from US President Trump.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks grinded higher for large parts of the US session and the major indices extended on their recent gains with both the S&P 500 and Dow notching a sixth consecutive win streak as tariffs remained in the spotlight with US President Trump expected to ease tariffs for US automakers at a speech in Michigan commemorating his first 100 days in office. There were also comments from other officials including US Commerce Secretary Lutnick who suggested a trade deal was reached with a country which he didn't name until approval from the other side, although FBN's Gasparino later suggested, citing word on Wall St, it could either be India or South Korea. Nonetheless, the gains in stocks were mild with upside limited as participants also digested data releases in which JOLTS printed below the bottom end of analyst estimates, while consumer confidence also disappointed and tumbled beneath expectations with responses detailing tariff concerns.
• SPX +0.58% at 5,561, NDX +0.61% at 19,545, DJI +0.75% at 40,528, RUT +0.56% at 1,977.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump is to sign three orders today on auto manufacturing, according to Bloomberg citing an official. It was also reported that White House Deputy Chief of Staff Miller said the domestic auto industry will be happy with the announcement President Trump will make tonight.
• US President Trump is set to announce the new car tariff climbdown in Michigan, according to FT. President Trump will announce that he is sparing automakers from some of his most onerous tariffs and offer companies that make their cars in the US small rebates to offset the cost of the levies, while US officials said the relief would mean automakers importing car parts would be spared the administration’s tariffs on steel and aluminium.
• US President Trump said India is coming along great and thinks they have a deal on tariffs, while he is not at all worried about the auto industry and will be talking to the PM of Australia about trade.
• US Treasury Secretary Bessent said there is a plan for changes to auto tariffs and factories in China are having to shut down, while he said they have seen substantial estimates of layoffs in China, according to an interview with FBN.
• US Commerce Secretary Lutnick said adjustments to autos tariffs are aimed at allowing domestic automakers time to grow US plants and employment, while the Executive Order grew out of a positive detailed conversation with domestic car makers. Lutnick said manufacturers of US-built autos will get a 15% offset for the value of those vehicles against parts imports and all cars that are finished in the US that have 85% domestic content will have no tariffs. Furthermore, he said auto manufacturers will pick the highest tariff that comes with their goods and they will only pay one whereby they will either pay the steel or auto tariff, whichever is higher.
• US Commerce Secretary Lutnick said a 10% tariff is 'virtually' not going to change prices, while he noted one trade deal has been reached with a country he did not name and is waiting for approval from the other country before announcing.
• US Trade Representative Greer told GOP senators that countries are coming to the table on tariff talks but noted Europe is not engaging as well, according to PBS News.
• US official said 25% will stack on top of the Most-Favoured-Nation rate and offset amount will be applied at the April 3rd start date of tariffs, based on production thereafter, according to Reuters.
• Indian government said Indian and US officials met in Washington for bilateral trade talks and made positive progress, while they discussed the pathway for concluding the first tranche of the trade deal. It was also reported that India was prepared to offer the US a "forward most-favoured-nation" clause as a sweetener in trade talks, according to Reuters citing sources.
• UK and India are on the cusp of striking a trade deal and British business leaders were invited to Downing Street on Tuesday afternoon for an announcement on the talks, according to Politico.
• China waived the 125% tariff on US ethane imports in recent days which will ease pressure on Chinese firms that import US ethane as well as provide an outlet for LNG, according to Reuters sources.
• China reportedly asked drugmakers and hospitals to find substitutes for US imports, according to Bloomberg.

NOTABLE HEADLINES

• US President Trump’s administration is working on changes to a Biden-era rule that would limit most countries' access to US-designed AI chips, while it considers removing the tiered system and replacing it with government-to-government agreements, according to Reuters citing sources.
• US Senate is to vote on the President Trump tariff resolution on Wednesday although Trump has said he would veto the measure if it passes Congress.
• Atlanta Fed GDPNow (Q1 25): -2.7% (prev. -2.4% on 24th April); Gold adjusted -1.5% (prev. -0.4%).

DATA RECAP

• US Consumer Confidence (Apr) 86.0 vs. Exp. 87.5 (Prev. 92.9)
• US JOLTS Job Openings (Mar) 7.192M vs. Exp. 7.48M (Prev. 7.568M, Rev. 7.48M)
• US CaseShiller 20 MM SA (Feb) 0.4% vs. Exp. 0.4% (Prev. 0.5%, Rev. 0.4%)
• US CaseShiller 20 YY NSA (Feb) 4.5% vs. Exp. 4.7% (Prev. 4.7%)
• US Monthly Home Price MM (Feb) 0.1% (Prev. 0.2%, Rev. 0.3%)
• US Monthly Home Price YY (Feb) 3.9% (Prev. 4.8%, Rev. 5.0%)
• US Adv Goods Trade Balance (Mar) -161.99B (Prev. -147.85B)
• US Wholesale Inventories Adv (Mar) 0.5% (Prev. 0.3%, Rev. 0.5%)
• US Retail Inventories Ex-Auto Adv (Mar) 0.4% (Prev. 0.1%)

FX

• USD clawed back some of the losses seen on Monday and gained against all G10 peers with the DXY unfazed by disappointing data releases in which US Consumer Confidence deteriorated for a fifth consecutive month in April and job openings fell to a six-month low with the largest decrease stemming from transportation, warehousing, and utilities. Meanwhile, tariffs remained in focus with President Trump set to sign three orders today on auto manufacturing and will announce the new car tariff climbdown in Michigan.
• EUR was mildly pressured with the single currency not helped as EZ sentiment declined in the Services, Economic, and Industrial components in April.
• GBP marginally weakened although the downside was limited in which GBP/USD oscillated around the 1.3400 level.
• JPY ultimately softened amid the positive risk appetite and after USD/JPY rebounded from a brief dip beneath the 142.00 level.

FIXED INCOME

• T-notes rose across the curve after a decline in job openings, weaker consumer confidence and an increase in trade deficits, stoked growth concerns.

COMMODITIES

• Oil prices were pressured and declined steadily throughout the session despite the lack of energy-specific newsflow.
• US Private inventory data (bbls): Crude +3.8mln (exp. +0.5mln), Distillate -2.5mln (exp. -1.7mln), Gasoline -3.1mln (exp. -1.2mln), Cushing +0.7mln.
• UAE's ADNOC is to supply US LPG to India following China-US tariffs in which it will start replacing some of the liquefied petroleum gas it supplies to India with cheaper US cargoes from June, according to Reuters citing sources.

GEOPOLITICAL

MIDDLE EAST

• US President Trump intends to extend the two-month deadline allocated for US-Iran negotiations, according to Israel Hayom citing Israeli officials.
• US Treasury targets network in Iran and China for role in procuring missile propellant ingredients for Iran.

RUSSIA-UKRAINE

• Russian President Putin is said to demand control of four Ukraine regions at US talks, according to Bloomberg.
• US Secretary of State Rubio said they are now at a time where concrete proposals need to be submitted by Russia and Ukraine, while he added that if there is no progress, the US will step back as mediators in this process.
• White House Press Secretary said President Trump is confident the Ukraine minerals deal will be signed.

ASIA-PAC

NOTABLE HEADLINES

• Chinese Vice Premier He Lifeng said need to calmly analyse and respond to recent developments and changes in the external situation, while he added they need to strengthen Shanghai's status as a global allocation centre and risk management centre for yuan assets.

EU/UK

NOTABLE HEADLINES

• ECB's Stournaras said the ECB should be cautious on further rate cuts but noted rates are likely to go down to 2% this year.
• ECB Consumer Expectations Survey showed forecasts for inflation in the next 12 months at 2.9% (prev. 2.6%) which is the highest since April 2024, while the 3yr ahead is seen at 2.5% (prev. 2.4%).

DATA RECAP

• EU Services Sentiment (Apr) 1.4 vs. Exp. 2.2 (Prev. 2.4, Rev. 2.2)
• EU Economic Sentiment (Apr) 93.6 vs. Exp. 94.5 (Prev. 95.2, Rev. 95.0)
• EU Industrial Sentiment (Apr) -11.2 vs. Exp. -10.1 (Prev. -10.6, Rev. -10.7)
• EU Consumer Confid. Final (Apr) -16.7 vs. Exp. -16.7 (Prev. -16.7)
• EU Selling Price Expectations (Apr) 11.0 (Prev. 11.4, Rev. 11.3)
• EU Cons Infl Expectations (Apr) 29.6 (Prev. 24.4, Rev. 24.5)
• EU Business Climate (Apr) -0.67 (Prev. -0.73, Rev. -0.72)
• German GfK Consumer Sentiment (May) -20.6 vs. Exp. -26.0 (Prev. -24.5, Rev. -24.3)
• Spanish CPI YY Flash NSA (Apr) 2.2% vs. Exp. 2.0% (Prev. 2.30%); Core 2.4% (prev. 2.0%)