US EQUITY OPEN: Indices in the red and edge lower post-open

OPEN: US indices opened in the red, as although Technology was initially the only sector in the green and benefiting from semiconductor names coming off lows post-the open, it has since slipped into the red. Materials and Consumer Discretionary are the laggards, with the latter hit by Home Depot post-earnings. Geopolitical headlines have been pretty sparse on Tuesday, so far, with the headline highlight being an explosion heard on Qeshm Island, which was later reported to be caused by the neutralisation of unexploded munitions. As such, WTI and Brent are slightly lower but within pretty contained ranges, given recent standards. Treasuries are lower and precious metals are getting slammed, particularly spot silver in a day which again lacks tier 1 US data of Fed speak. The Dollar is firmer, to the detriment of peers, with Antipodeans getting hit on the aforementioned metals pricing. CAD is lower, and saw weakness in wake of the much softer-than-expected Canadian inflation data.

• Blackstone (BX) and Google (GOOGL) plan to create a US AI cloud Co. using Google’s specialised chips.
• Akamai (AKAM) will offer USD 1.3bln of 0% convertible senior notes due 2030 & USD 1.3bln due 2032.
• Analog Devices (ADI) in advanced talks to acquire Empower Semiconductor for USD 1.5bln in cash.
• Home Depot (HD): Top & bottom line beat but SSS missed; Backed FY guidance.
• StubHub Holdings (STUB) upgraded at Guggenheim.