Newsquawk Daily European Opening News - 24th September 2026

• US Treasury Secretary Bessent said the US-China trade truce was extended to January 10th, while he doesn't know if a bigger trade deal can be done with China and could just roll the current deal forward.
• US reportedly dismissed Iran's Hormuz offer during UN talks, saying Tehran does not control the Strait, the Times of Israel reported.
• White House official denied Politico reports that the Trump administration is preparing a plan to ban exports of diesel for 90 days.
• Crude futures slightly pulled back overnight, 10yr UST futures lingered near the prior day's trough, and DXY paused overnight.
• APAC stocks were mostly pressured; Nikkei outperformed on return from holiday, and European equity futures indicate a lower cash market open.
• Looking ahead, highlights include German Ifo, US Initial Jobless Claims, Chinese President Xi's state visit to the US. Policy announcements from the Riksbank, SNB, Norges Bank, and Banxico. Speakers include ECB's Schnabel & Lane, Fed's Williams, Barkin, Hammack & Paulson, BoE's Dhingra, Breeden & Lombardelli, SNB's Schlegel, Riksbank's Thedeen, Norges Bank's Bache. Supply from Italy & the US.

SNAPSHOT

STOCKS
Nikkei 225	+1.3%	ASX 200	-0.7%
Hang Seng	-0.7%	Shanghai Comp	-1.0%
Euro Stoxx 50 Dec'26	-0.4%	DAX Dec'26	-0.3%
ES Dec'26	-0.2%	NQ Dec'26	-0.2%

FX
DXY	U/C (101.09)	EUR/USD	U/C (1.1384)
USD/JPY	-0.2% (157.96)	GBP/USD	U/C (1.3241)

BONDS
US T-Note Dec'26	+1 tick	Bund Dec'26	-21 ticks
US 10yr Yield	5.12%	German 10yr Yield	3.57%

ENERGY & METALS
WTI Nov'26	-0.7%	Brent Dec'26	-0.6%
Spot Gold	U/C	LME Copper	-0.1%

CRYPTO
Bitcoin	-0.3%	Ethereum	+0.2%

As of 06:20BST/01:20EDT

• Click for the Newsquawk Week Ahead.

IRAN CONFLICT

• US reportedly dismissed Iran's Hormuz offer during UN talks, saying Tehran does not control the Strait, the Times of Israel reported.
• US Treasury Secretary Bessent said they are getting sometimes up to 17mln oil barrels out of Hormuz and noted that probably 80-90% of Iran's external flights are shut down.
• UK Chancellor Healey said he spoke with US Treasury Secretary Bessent today about stepping up pressure on Iran and how to work together to drive growth in both nations.
• EU's Costa spoke to Iran's President Pezeshkian and urged Iran to resume its cooperation with the IAEA, while he also called for an end to Iran's strikes against its neighbours and a full restoration of freedom of navigation in the Strait of Hormuz.
• Iran's President Pezeshkian held meetings with regional and European leaders, while he discussed with Iraq's PM bilateral ties and joint projects.
• Iran's Foreign Ministry said Iran's Foreign Minister met with his Pakistani counterpart at the UN General Assembly.
• Iranian Foreign Ministry spokesperson said another round of message exchanges and clarifications took place between Iran and the US via a Qatari mediator on Tuesday, while Iran clarified its conditions for reviving diplomacy during the two-hour process with the US.
• Iran armed forces chief said Iranian President Pezeshkian dealt a blow to the US President at the UN, while he added that revenge for the slain leader and Minab children will continue.
• Initial reports noted two explosions in Bandar Abbas and one in Sirik, southern Iran, with the explosion in Sirik reportedly coming from near the coast, off to the sea.
• Iranian advisers helped the Houthis seize Yemen's Red Sea coast in less than 48 hours.
• Saudi airstrike reported in Yemen's Taiz province, according to Tasnim.
• Israeli military carried out several bombings in southern Lebanon, according to Al Masirah.

US TRADE

EQUITIES

• US stocks were sold on Wednesday as global yields surged, with the RUT the clear underperformer, while all major indices finished in the red. Sectors were predominantly lower, with Utilities, Communication Services and Consumer Discretionary lagging, while Energy and Industrials outperformed. Semis and memory names were hit, likely reflecting some reversal of the recent Muse-induced strength following Tuesday's releases of GPT Astra 6 and Claude Opus 5.5, while Chinese AI firms were pressured overnight following probes into Moonshot and DeepSeek. The weakness in stocks coincided with a global bond sell-off, with UST yields surging across the curve, particularly at the front end, as participants digested strong and inflationary US Flash PMI data, rising oil prices, further hawkish Fed speak, a very weak 5-year auction and reports surrounding a potential US diesel export ban.
• SPX -0.75% at 7,706, NDX -0.85% at 30,470, DJI -0.68% at 51,517, RUT -1.77% at 2,839.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump greeted Chinese President Xi on his arrival at Joint Base Andrews, while Trump said it was a great greeting with Xi and that the entire tech and banking world will be at Thursday's dinner. Trump also stated that he had some great conversations with leaders at the UN General Assembly.
• Chinese President Xi said he looks forward to in-depth exchanges with US President Trump and will expand cooperation between the two countries in various areas, while he is confident the US trip will produce fruitful results. Xi also commented that China and the US must be allies, not adversaries, and he is confident China and the US can find the right path to coexist in a new era.
• US Treasury Secretary Bessent said the US-China trade truce was extended to January 10th, while he doesn't know if a bigger trade deal can be done with China and could just roll the current deal forward. Furthermore, Bessent said that presidents Trump and Xi are expected to meet four times this year and that China is doing well so far in meeting 2026 pledges.
• US President Trump administration officials are reportedly weighing rolling back the beef import plan, according to Politico.

NOTABLE HEADLINES

• Fed's Goolsbee (2027 voter) said it is better to assume that larger negative supply shocks will have a relatively persistent effect on inflation, pointing to tariffs and Covid as examples and saying that may also be happening with oil, adding "we better be careful".
• US Treasury Secretary Bessent said the private sector is driving America’s economic resurgence. Bessent separately commented that reports he will likely be Trump's AI czar are probably fake news, while he stated that there is one AI czar and it is President Trump.
• US Senate Majority Leader Thune believes President Trump is open to implementing AI guardrails despite his public defiance on the issue, according to Axios.
• US senators are reportedly seeking to fast-track legislation to ban Chinese vehicles this week.

APAC TRADE

EQUITIES

• APAC stocks were mostly pressured following on from the declines in global peers alongside the recent bond turmoil and jump in yields, owing to several factors including strong US data, hawkish Fed rhetoric and mixed reports regarding a US diesel export ban.
• ASX 200 retreated with the declines led by weakness in miners, real estate and materials, while sentiment was not helped by mixed jobs data including an unexpected rise in the Unemployment Rate to a five-year high.
• Nikkei 225 outperformed after Japanese participants returned from the long weekend and with tech names playing catch-up to the recent AI-related momentum.
• Hang Seng and Shanghai Comp retreated despite early optimism from President Xi's state visit to the US, while a two-month extension to the US-China trade truce until January 10th also failed to spur risk appetite.
• US equity futures remained subdued after retreating alongside the global bond rout.
• European equity futures indicate a lower cash market open, with Euro Stoxx 50 futures down 0.4% after the cash market closed with losses of 0.4% on Wednesday.

FX

• DXY paused overnight after advancing yesterday alongside sharp rises in global yields, stronger-than-expected US data, and growing economic pressure for Europe and APAC FX if the US goes ahead with a US diesel export ban, while further Fed speak pointed towards another hike, with Governor Barr noting that further rate hikes are likely needed to ensure a timely return to the 2% inflation target.
• EUR/USD was stuck near a monthly low after sliding beneath the 1.1400 handle and with recent comments from ECB officials noting there was no major wage response, nor second-round effects from the energy shock.
• GBP/USD lacked demand after slumping to sub-1.3300 territory alongside recent underperformance in cyclical currencies and with headwinds following the reports of a potential US diesel export ban.
• USD/JPY pulled back beneath the 158.00 level as Japanese participants returned to the market for the first time this week and with Japanese yields rising across the curve.
• Antipodeans were range-bound following recent underperformance and with AUD/USD indecisive after mixed jobs data in which headline Employment Change topped forecast, but was solely fuelled by part-time work, while the Unemployment Rate slightly increased to its highest in around 5 years amid a higher Participation Rate.
• PBoC set USD/CNY mid-point at 6.7489 vs Exp. 6.7184 (prev. 6.7468).

FIXED INCOME

• 10yr UST futures lingered near the prior day's trough after slumping yesterday as yields rallied amid hawkish PMI data and Fed speak, a woeful 5-year auction, and with global bonds hit by news about a potential US diesel export ban, while participants also look ahead to further supply, including a 7-year note auction.
• Bund futures briefly slumped to sub-120.00 territory amid the global bond sell-off and recent issuances.
• 10yr JGB futures gapped lower on reopen from the silver week holiday closure and following the turmoil in global peers, while there was also recent corporate supply with SoftBank issuing USD 11.1bln in senior notes to fund its OpenAI investment.

COMMODITIES

• Crude futures slightly pulled back overnight after gaining yesterday as substantial progress between the US and Iran remained absent despite the recent positive meeting between US envoys and the Iranian delegation, while there were also conflicting reports regarding a US diesel export ban.
• White House official denied Politico reports that the Trump administration is preparing a plan to ban exports of diesel for 90 days.
• US President Trump emphasised to Venezuela's Rodriguez the need to keep oil flowing, relations warm, and that elections need to happen, according to Axios citing sources.
• Spot gold was lacklustre amid the recent upside in the dollar and surge in yields, while the precious metal was also contained by near-term resistance at the USD 4,300 level.
• Copper futures traded range-bound alongside the mostly subdued risk sentiment in Asia.
• BHP (BHP AT) said operations at the Escondido mine in Chile were suspended following an accident.

CRYPTO

• Bitcoin ultimately declined in choppy price action and traded both sides of the USD 84,000 level.
• US considers an initiative to promote dollar-backed stablecoin abroad.

NOTABLE ASIA-PAC HEADLINES

• Japanese Finance Minister Katayama said the principles on forex established since the joint US-Japan intervention remain in effect, while she won't comment on specific FX levels.
• Japan's Finance Ministry is to consider cutting issuances in liquidity-enhancement auctions for medium-term JGBs, according to sources.

DATA RECAP

• Australian Employment Change (Aug) 39.5K vs. Exp. 20K (Prev. -15.8K)
• Australian Full Time Employment Change (Aug) -6.3K (Prev. 16.3K)
• Australian Part Time Employment Chg (Aug) 45.8K (Prev. -32.2K)
• Australian Unemployment Rate (Aug) 4.6% vs. Exp. 4.5% (Prev. 4.5%)
• Australian Participation Rate (Aug) 67.1% vs. Exp. 66.9% (Prev. 66.9%)

GEOPOLITICS

RUSSIA-UKRAINE

• Waves of Russian missiles attacked Kyiv and more than a dozen heavy explosions were heard in 30 minutes, according to an FT reporter.
• Russian Foreign Minister Lavrov and US Secretary of State Rubio discussed the situation in the Middle East, the Transcaucasus, Latin America and the Caribbean, while they emphasised the need to restore bilateral relations as soon as possible, and an agreement was reached to continue discussions.
• Russian presidential envoy headed to the US for new talks with members of Trump's administration, according to sources.

OTHER

• US State Department said Secretary of State Rubio met with his Indian counterpart and discussed sanctions that could be levelled against the states that engage economically with Russia and Iran.
• Pakistan conducted precision aerial and drone strikes in Afghanistan on 10 locations used to launch drones towards Pakistan, which were successfully neutralised.
• North Korean Foreign Minister said denuclearisation is an unrealistic delusion and that their nuclear status is irreversible, which will endure forever, while he added that the more the US and its allies advocate denuclearisation, the more they will strengthen their stance towards the US.
• North Korea said it conducted a test firing of updated guided rocket artillery shells on Tuesday.

EU/UK

NOTABLE HEADLINES

• UK Treasury is open to smaller fiscal headroom and Chancellor Healey may accept a smaller fiscal buffer to reduce tax rises in next month’s Budget, according to FT
• ECB's Lane said there is no major wage response to the energy shock.