US Market Open: China-related assets slide as MOFCOM disappoints

European bourses are entirely in the red, with sentiment hit after China’s NPC press conference disappointed markets; US futures remain flat.
DXY is slightly firmer, with the JPY strong whilst the Antipodeans lag given the lack of fresh stimulus measures from China.
Bonds are on a firmer footing, with modest outperformance in Gilts and as USTs await Fed speak from Bowman & Musalem.
Crude oil, XAU and base metals are all on the backfoot, following the underwhelming Chinese NPC press conference.
Looking ahead, Canadian Jobs, US UoM Inflation Prelim/Sentiment, Speakers including BoC's Gravelle, Fed's Bowman & Musalem.

EUROPEAN TRADE

EQUITIES

European bourses, Stoxx 600 (-0.7%) are entirely in the red and to varying degrees vs futures initially indicating a positive open. Sentiment was hit following the China’s NPC press conference, where it largely refrained from providing specific details on fiscal stimulus, but did promise more forceful fiscal policy in next year. Bourses continued to trundle lower and currently reside just off worst levels.
European sectors hold a negative bias; Healthcare takes the top spot, lifted by AstraZeneca after it reported a positive update on one of its treatments. Basic Resources and Consumer Products sit at the foot of the pile, with the former hampered by losses in underlying metals prices whilst the latter is weighed on by poor results from Richemont. Additionally, sentiment across these China-exposed sectors was hit given the lack of fresh stimulus measures from China’s NPCSC.
US equity futures (ES -0.1%, NQ U/C, RTY U/C) are flat/incrementally lower, but have been edging ever so slightly lower in recent trade, given the weakness also seen in Europe.
TSMC (2330 TT) has reportedly informed Chinese customers that it will be suspending production of some of their AI and high-performance chips, via Nikkei citing sources; as the Co. increases efforts to comply with US export controls
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DXY is slightly higher, with USD stronger vs. most peers (DXY is sluggish on account of JPY strength). DXY has been as high as 105.44 post-election but has since returned to a 104 handle.
EUR is on the backfoot vs. the USD with the pair unable to hold above the 1.08 mark after venturing as high as 1.0824 on Thursday. For now, today's session low is at 1.0762 is still comfortably above yesterday's base at 1.0712.
GBP softer vs. the USD to a similar magnitude as peers. Downside for Cable is limited relative to Thursday's moves with the current session low at 1.2936.
JPY is the only of the majors to be up against the USD in an extension of yesterday's price action. Markets seem willing to fade some of the post-election rally seen in USD/JPY with Japanese officials out in full force attempting to jawbone the pair lower. USD/JPY has been as low as 152.28 with the next targets coming via the 200 and 21DMAs at 151.67 and 1

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