Newsquawk Daily US Opening News - 8th September 2026

• 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.

SNAPSHOT

STOCKS
Euro Stoxx 50	-0.4%	DAX40	-0.5%
Stoxx 600	-0.6%	FTSE 100	-0.1%
ES Sep'26	-0.3%	RTY Sep'26	-0.5%
NQ Sep'26	-0.1%	YM Sep'26	-0.8%

FX
DXY	+0.1% (98.98)	EUR/USD	-0.1% (1.1611)
USD/JPY	-0.2% (154.09)	GBP/USD	-0.1% (1.3525)

BONDS
US T-Note Dec'26	-4 ticks	Bund Dec'26	-5 ticks
US 10yr Yield	4.804%	German 10yr Yield	3.391%

ENERGY & METALS
WTI Oct'26	+3.0%	Brent Nov'26	+1.8%
Spot Gold	-0.2%	LME Copper	+0.5%

CRYPTO
Bitcoin	-0.9%	Ethereum	-0.5%

As of 10:35BST / 05:35EDT

LABOR DAY RECAP

• On the geopolitical front, the US launched strikes against three Iranian crude oil tankers on Saturday in retaliation for the IRGC targeting US Navy warships with ballistic missiles. Iran's navy also said it targeted three oil tankers that were travelling through unauthorised routes in the Strait of Hormuz and three additional US vessels in other areas. Since the weekend, the Iranian Foreign Ministry Spokesperson said a deal with Oman regarding the Strait of Hormuz will be registered soon, while the FT reported that Saudi Aramco's oil facilities in Jizan were hit, which caused upside in energy benchmarks.
• European bourses were lower across the board, given the upside seen in energy benchmarks.
• In the FX space, G10s were firmer against the greenback, with the JPY the clear outperformer, while the EUR was steady despite the AfD victory in Saxony-Anholt.
• In the metals space, spot gold was choppy but was helped amid data from China that the PBoC boosted its gold reserves for a 22nd straight month.

EUROPEAN TRADE

EQUITIES

• European bourses are softer across the board, Euro Stoxx 50 -0.4%, with clear underperformance in the SMI, -1.4% (see Novartis below). The disappointing risk tone comes amid upside in energy prices. The Saudi Energy Minister said a number of energy facilities and utilities were hit, resulting in operations being temporarily halted. This was later confirmed in a Yemeni Houthis statement.
• Sectors point to a mixed picture. Food, Beverages & Tobacco is the clear outperformer, with Optimised Personal Care and Chemicals rounding out the top 3 sector gainers. On the other hand, Health Care is the laggard, with Banks and Insurance completing the underperformers.
• Another setback for Novartis (-8.9%) this morning, after it announced that its del-desiran failed to meet the primary endpoints in its late-stage trial. Other key movers: Computacenter (-0.2%), strong H1 metrics and raises its FY26 outlook; Sandoz (+1.8%), confirms its 2028 outlook and set out new 2030 guidance and targets 100 biosimilars by 2040; Infineon (-3.6%), downgraded to equal weight at Morgan Stanley; Schneider Electric (-0.2%), downgraded to neutral at Santander.
• US equity futures point to a softer open, ES -0.3%, in line with their European peers as the cash market returns from holiday.
• Click for the sessions European pre-market equity newsflow
• Click for the additional news

FX

• Snapshot: G10s are mixed against the USD. JPY continues to extend on recent strength, whilst the Kiwi is the clear underperformer this morning amidst the downbeat risk tone. Also factoring in is the mixed Chinese Trade data, which rose from the prior, albeit less than consensus.
• DXY is incrementally firmer this morning, and holds within a 98.71-99.00 range. Overnight, the USD was mildly pressured, but then picked up in early European trade alongside a pick-up in yields. US-specific news flow has been lacking as participants return from holiday, but focus will be on trade updates between the US and Canada. On that note, Canada's retaliatory tariffs against US goods took effect, as scheduled. The Loonie is a touch firmer vs USD this morning, but likely benefiting from the surge in energy prices rather than any trade-related optimism.
• The Yen story remains much more pertinent for the USD. Recent thin liquidity (due to Labor Day) has allowed the JPY to take more ground against the USD, with USD/JPY briefly dipping below the 153.00 mark. The pair is now trading at levels not seen since early February of this year. As mentioned in Monday’s FX update, the recent hawkish BoJ repricing, potential intervention/rate check, and increased possibility of larger GPIF purchases have lifted the JPY over the past couple of weeks.
• Also helping the outperformance today is the firmer-than-expected Labour Cash Earnings and an upward Q2 GDP revision. There were also comments from Japanese Finance Minister Katayama, who stated there was no change to their forex stance since the Japan-US joint intervention and that they will closely communicate with the US to achieve orderly forex markets.
• EUR is a touch lower this morning, pressured by the ongoing strength in the energy space. The ECB will hike rates by 25bps this Thursday, though the outlook beyond September remains more uncertain. If oil prices continue to lift energy prices, and second-round effects begin to filter through into the Eurozone economy, another hike in December could be likely. The single currency currently holds around 1.1611, with the high of the day a couple pips above its 200-DMA (1.1633).

FIXED INCOME

• Despite some slight respite being found overnight, fixed income is back in the red as energy extends to fresh highs and Brent surpasses the USD 99.0/bbl handle, bringing a return back to USD 100/bbl into view. As such, yields are bid across the globe and the curve, with the UK feeling this most keenly given its energy sensitivity and after AMZN filing for GBP-denominated issuance.
• Continuing with Gilts, the benchmark opened higher by around 13 ticks, taking initial respite from the brief overnight pause and potentially reports that PM Burnham is set to meet with businesses next week to reassure them into the budget. However, that swiftly faded with Gilts now down by over 10 ticks and at an 85.56 base following the Amazon update. For the curve, the 2yr is 4bps higher at 4.61%, but off the 4.69% recent peak from last week. While the 10yr is c. 3bps higher, and similarly off last week’s 5.29% near 20yr peak.
• Bunds lower, by about 10 ticks at the time of writing and just off worst in 121.65-95 confines. Pressure a function of the discussed energy upside on Saudi and Houthi updates this morning (see Commodities/headline feed). For Germany, the docket features Green supply which should pass without issue. More pertinently, we continue to await a concrete response from Chancellor Merz on the strength of AfD, something that will become increasingly acute into more regional elections this month. Before that though, the ECB looms on Thursday, and while a 25bps hike is all but priced, the market will be keenly attentive to any dovish/hawkish signal from the statement/forecasts/presser, particularly at the short-end of the curve.
• USTs are also under pressure on the resumption of cash trade after the US holiday on Monday. Currently, it finds itself lower by a handful of ticks and at a 107-09+ base, approaching Monday’s 107-08 trough. The docket today features supply and updates from President Trump as the scheduled highlights; though, geopolitics may well dominate.
• Amazon (AMZN) to sell GBP-denominated bonds; 3yr, 6yr, 12yr & 19yr.
• Germany sells EUR 1.374bln vs exp. 1.5bln 2.30% 2033 and 2.60% 2041 Green Bund.
• Japan sells JPY 1.9tln 5-year JGBs; b/c 3.42x (prev. 4.15x), average yield 2.239% (prev. 2.020%), Tail in price 0.04 (prev. 0.02).
• The Netherlands sells EUR 3bln vs exp. 2.5-3bln 2.75% 2036 DSL: Avg. yield 3.463% (prev. 3.206%).
• Australia sells AUD 400mln in 5.00% June 2036 Bonds: b/c 5.76x, avg. yield 5.1874%.

COMMODITIES

• Firmer trade across energy once again as geopolitical tensions remain high, and with hardly any signs of peace between the US and Iran (more details below). WTI Oct resides towards the top of a USD 90.87-94.73/bbl range (vs Friday’s USD 88.72-92.17/bbl band), while Brent Nov sits towards the upper end of a USD 96.78-99.46/bbl range (vs yesterday’s USD 95.97-98.06/bbl band). Dutch TTF front-month resides just above the EUR 74/MWh mark after finding earlier support at EUR 73/MWh and then resistance at EUR 74.50/MWh.
• Precious metals are subdued as higher energy prices keep the USD underpinned. Spot gold resides towards the bottom of a USD 4,388-4,443/oz range (vs yesterday’s USD 4,381-4,435/oz band), while spot silver sits towards the lower end of a USD 65.69-67.19/oz range (vs yesterday’s USD 65.40-66.74/oz band).
• Base metals are mostly firmer despite the aforementioned crude prices and effect on the USD, with supply concerns and tariff fears cited by desks, alongside ongoing hopes of Chinese stimulus. 3M LME copper resides near record highs in a current USD 14.51k-14.64k/t range.
• In terms of the main geopolitical updates, 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. Further, Yemeni forces launched ballistic missile and drone attacks on targets in Saudi Arabia, including around Khamis Mushait, Abha airport and King Khalid Airbase. Houthi spokesperson warned that further attacks on Yemen will be met with broader strikes on Saudi Arabia. Saudi Energy Minister confirmed that several energy facilities and utilities were hit; are temporarily halting some operations. Further, Tasnim analysis suggests that recent Iranian commentary indicates that Iran is considering expanding the geographic scope of its maritime confrontation into the northern Indian Ocean.
• Iraqi Oil Minister said they will soon announce refinery development and construction opportunities for investors.
• Russia's Kremlin spokesperson said cooperation between India and Russia on rare earth explorations are being discussed.

TRADE/TARIFFS

• Canada's retaliatory tariffs against US goods took effect, as scheduled.
• US President Trump called for a stop to US sales of Canada’s Bombardier aircraft.
• Japanese Chief Cabinet Secretary Kihara said China's anti-dumping move targeting Japan defies practice and they will act to prevent an undue impact from China's actions.

NOTABLE EUROPEAN DATA RECAP

• German Trade Balance (Jul) 21.3B vs. Exp. 16B (Prev. 15.4B).
• German Exports (Jul MM) -0.8% vs. Exp. 0% (Prev. 0.9%).
• German Imports (Jul MM) -5.7% (Prev. 4.4%).
• French Trade Balance (Jul) -6.7B vs. Exp. -6B (Prev. -5.8B).
• UK BRC Retail Sales Monitor (Aug YY) 0.5% vs. Exp. 1.2% (Prev. 1.0%).

CENTRAL BANKS

• RBA's Hauser said that the RBA stands ready to raise rates again if needed, the question is whether more is needed on interest rates.
• RBA's Assistant Governor Hunter said the board is concerned about inflation and has low tolerance, adding the board may have to raise rates if there is a sense inflation will be stronger.

GEOPOLITICS

MIDDLE EAST

• US President Trump posted, "Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon. MAGA!"
• Iranian President Pezeshkian said Iran has always opposed war but will continue to resist aggression with full force until the aggressors are made to regret their actions.
• Iran's top national security official Rezaei said Washington has received a clear warning from Iran’s new missiles and that economic warfare will be met with a maritime exclusion zone across the Persian Gulf to the blockade perimeter, while he added that the operational posture toward US warships and bases has been fundamentally recalibrated.
• Tasnim analysis suggests that commentary from Iranian official Rezaei signals that Iran is considering expanding the geographic scope of its maritime confrontation into the northern Indian Ocean.
• Saudi Energy Minister said a number of energy facilities and utilities were hit and that some operations have been temporarily halted. This was later confirmed by the Houthis, in which they added that they struck the Khamis Mushait Air Base in retaliation to recent Saudi airstrikes. The group warned that further attacks on Yemen will be met with broader strikes on Saudi.

RUSSIA-UKRAINE

• Russia’s Defence Ministry said Russian forces struck energy infrastructure and drone-manufacturing facilities in Odessa and the Odessa region.
• Russian Foreign Minister Lavrov rejected a proposal to halt strikes on civilian supply vessels in the Black Sea, Interfax reported.
• Ukrainian President Zelensky said he hopes to meet US President Trump later in September to discuss the winter air defence package.

CRYPTO

• Bitcoin has extended on Monday's losses and currently trades at the lower end of its USD 78.2k-USD79.5k range.
• Republican senators have suggested that the bipartisan crypto regulatory bill is likely to fail next week, Semafor reported.

APAC TRADE

• APAC stocks traded mixed in the absence of a lead from Wall Street and as attention turned to several data releases from the region, including Japanese GDP and Chinese trade data.
• ASX 200 underperformed with sentiment not helped by a deterioration in the Westpac Consumer Sentiment and NAB Business Confidence surveys.
• Nikkei 225 was choppy amid recent currency strength and as the latest data, including upward GDP revisions and hot Labour Cash Earnings, solidified the case for a BoJ rate hike next week.
• KOSPI outperformed on tech momentum and after South Korean GDP matched initial estimates.
• Hang Seng and Shanghai Comp were mixed as the Hong Kong benchmark was dragged lower by weakness in the local tech and biopharma stocks, while the mainland was kept afloat as participants digested the ultimately mixed Chinese trade data, in which Exports and Imports accelerated and continued to show strong double-digit percentage growth, but missed estimates.

NOTABLE ASIA-PAC HEADLINES

• Japanese Finance Minister Katayama said they will bolster efforts to secure funding for a consumption tax cut on food and will communicate fully with markets and the public to gain credibility in their fiscal policy. Furthermore, she said they won't comment on specific FX levels and there is no change to their forex stance since the Japan-US joint intervention, while they will closely communicate with the US to achieve orderly forex markets.
• Japan LDP policy chief Kobayashi will retain post and Japan's Ishin party seeks a special mission post in reshuffle, according to Japanese press.

NOTABLE APAC DATA RECAP

• Chinese Trade Balance (Aug) 119.1B vs. Exp. 119.1B (Prev. 112.5B).
• Chinese Exports (Aug YY) 25% vs. Exp. 25.9% (Prev. 23.9%).
• Chinese Imports (Aug YY) 28.2% vs. Exp. 30% (Prev. 27.5%).
• Japanese GDP Growth Rate Final (Q2 QQ) 0.4% vs. Exp. 0.3% (Prev. 0.5%).
• Japanese GDP Growth Annualized Final (Q2) 1.4% vs. Exp. 1.1% (Prev. 1.8%).
• Japanese Average Cash Earnings (Jul YY) 4.7% vs. Exp. 3.9% (Prev. 4.0%).