Morning wrap (10.09.2025)

Futures on U.S. and European indices start the day with cautious gains (US100, US500: +0.1%; EU50 and US30 flat).

Apple (AAPL.US) extends yesterday’s declines in after-hours trading (-0.1%) following the launch of the iPhone 17 series. While the latest pricing is expected to support margins (e.g., the premium iPhone 17 Pro Max at $1,999), investors remain cautious amid competition from other manufacturers and Apple’s general “lateness” in implementing AI.

Emmanuel Macron appointed current Defence Minister and a long member of its politcal camp Sébastien Lecronu as new Prime Minister, following the collapse of Bayrou government. France will remain largely disruppted today, due to the nationwide "Block Everything" protest, called by left-wing parties.

Donald Trump is pressuring the European Union to impose tariffs of up to 100% on China and India for importing Russian oil, according to the Financial Times and CNBC. The U.S. president also declared readiness to mirror any EU-imposed measures. Trump’s administration is increasingly dissatisfied with the lack of progress in the Ukraine war and deepening ties among Moscow, Beijing, and New Delhi.

A federal court handling Fed Governor Lisa Cook’s case against Trump ruled that she may remain in her position and perform her duties at the Fed during the trial. The preliminary ruling strikes at the administration’s efforts to exert greater influence over the Fed’s composition and activities.

Asia-Pacific indices are broadly higher, extending yesterday’s Wall Street optimism. Biggest gains are seen in Shanghai, China, and Hong Kong (S20cash, CNH.cash, HK.cash: about +1.1%). Japanese Nikkei 225 futures are also up (JP225: +0.45%) along with Australia’s S&P/ASX 200 (AU200.cash: +0.35%). Taiwan’s TAIEX hit a record high (+1.4%), while India’s Nifty 50 shrugs off geopolitical concerns (+0.6%).

Consumer prices in China fell more than expected in August (-0.4% y/y vs. forecast -0.2%, previous 0%), signaling intensifying deflationary pressure. Core inflation (excluding food and energy) rose 0.9%. The weak figure reflects base effects, a sharp drop in food prices (-4.3%), and weak consumer demand weighing on durable goods (-3.7%). PPI inflation stabilized slightly (improving from -3.6% to -2.9%).

U.S. crude oil inventories rose unexpectedly by 1.25 million barrels last week, according to API (forecast: -1 million, previous: +0.66 million). Brent and WTI crude futures record a third consecutive session of gains (OIL: +0.8%), while NATGAS futures appear to be consolidating (-0.3%).

The U.S. dollar slightly corrects yesterday’s gains against most currencies (USDIDX: -0.05%). Strongest are the Antipodean currencies (AUDUSD, NZDUSD: +0.4%) and oil-linked Norwegian krone (USDNOK: -0.1%). EURUSD trades flat (1.171).

Gold rebounds 0.4% after yesterday’s pullback from its all-time high to $3,642 per ounce; silver futures are also higher (+0.5% to $41.07 per ounce).