Newsquawk

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  • European bourses/US futures are slightly softer as broader sentiment tilts after mixed APAC trade ahead of US CPI
  • DXY remains bid with peers generally contained though EUR slips on less-hawkish ECB speak while GBP remains bid pre-BoE
  • EGBs caught a bid to fresh session highs after well-received UK supply and ECB's Lagarde on APP/PEPP
  • Overall, commodities are pressured and in-fitting with the above; focus on China-Australia re. Copper and the...
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Expectations are for the BoE to deliver a 25 basis points hike in the Base Rate to 4.5%, according to 55 out of 56 analysts surveyed by Reuters. Market pricing concurs, with 25 basis points priced at around 85%. Dovish dissent from Tenreyro and Dhingra is expected once again...

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  • APAC stocks were mostly lower as the region digested a slew of earnings updates and following the weak handover from Wall St.
  • There was a lack of progress in debt limit negotiations although President Biden will meet with congressional leaders again this Friday.
  • Fed's Williams said the FOMC will raise rates again if needed and he doesn't see any reason to cut rates this year.
  • European equity futures are indicative of a slightly higher...
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  • European bourses & US futures are softer as the region struggles for a foothold after mixed APAC trade and ahead of Fed/debt ceiling events
  • USD picks up against peers ex-JPY as yields ease from best while AUD retreats after Chinese imports declined unexpectedly
  • Yellen reiterates the Treasury could run out of cash as soon as June 1st, with the Bipartisan centre expecting the x-date between early-June to August
  • Fixed benchmarks have been...
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  • APAC stocks were mixed following the indecisive performance on Wall St where the focus was on the Fed’s SLOOS
  • The report showed that banks tightened credit terms and demand for loans declined.
  • Chinese trade figures showed stronger-than-expected export growth but imports disappointed with a surprise contraction.
  • European equity futures are indicative of a slightly higher open with the Euro Stoxx 50 +0.2% after the cash market closed up...
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  • European bourses are firmer across the board, Euro Stoxx 50 +0.1%, though trade has been very contained/steady with the UK away.
  • Stateside, the narrative is much the same with futures flat ahead of key Fed-related events and the focus thus far on BRK.B and debt ceiling.
  • Biden to meet McCarthy & others on Tuesday re. debt limit, via FT; said he would not rule out invoking the 14th amendment
  • DXY is softer and edging towards 101.00 with...
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  • APAC stocks mostly gained as the region took impetus from Friday's rally on Wall St and strong US jobs data.
  • Fed's Bullard (non-voter) said he thinks the Fed will ultimately have to grind higher on rates because of forecasts for a slower decline in inflation than others.
  • US President Biden is to meet with House Speaker McCarthy and other top congressional leaders on Tuesday regarding the debt limit crisis, according to FT.
  • European equity...
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Week Ahead May 8-12th

  • MON: UK Bank Holiday, EZ Sentix Index (May), German Final CPI (Apr), Fed SLOOS
  • TUE: Riksbank Minutes, NBH Announcement, EIA STEO, Chinese Trade Balance (Apr)
  • WED: Norwegian CPI (Apr), US CPI (Apr)
  • THU: BoE Announcement, BoJ Summary of Opinions, OPEC MOMR, Chinese Inflation (Apr), US PPI (Apr)
  • FRI: New Zealand Inflation Forecasts (Q2), UK GDP (Mar/Q1), French CPI...
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  • European bourses and US futures are firmer despite the mixed APAC session as participants await NFP
  • Within this, DAX 40 outperformers aided by German electricity adjustments and strong Adidas earnings.
  • ABA is urging the SEC to investigate short-selling activity while the White House is hopeful on avoiding a debt default.
  • AUD outperforms after hawkish-SOMP while CHF lags post-CPI; USD is softer but relatively...
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  • APAC stocks traded mixed after the weak lead from the US where risk sentiment was subdued by banking-related headwinds.
  • US federal and state officials are reportedly assessing possible market manipulation regarding banking shares.
  • European equity futures are indicative of a higher open with the Euro Stoxx 50 +0.5% after the cash market closed down 0.5% yesterday.
  • Sources revealed ECB policymakers agreed to a smaller rate increase in return...
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  • European bourses are pressured following the subdued APAC/US handover, stateside performance is currently mixed/rangebound with a focus on regional banks/earnings.
  • DXY nears 101.50 from a 101.02 base as the Euro failed to eclipse 1.11 with peers contained ex-out/underperformance in NZD and CHF
  • Crude benchmarks are firmer after an initial marked slump overnight; Shell says they are nearing 2019 levels of oil demand in China
  • UST yields...
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The consensus among analysts and market pricing is that the ECB will opt for a 25bps hike in the Deposit Rate to 3.25%. Policymakers have indicated that the options are between a 25bps and 50bps hike, with the aim of bringing inflation back to target. Considering the political nature of the...

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  • Fed delivered a 25bps hike and opened the door to a pause, although Powell was reluctant to officially call it one and pushed back on talk of rate cuts.
  • PacWest Bancorp (PACW) is said to weigh strategic options including a sale, according to Bloomberg.
  • APAC stocks were mixed in the aftermath of the FOMC which saw US stocks mostly decline post-Powell presser.
  • European equity futures are indicative of a marginally softer open with the Euro...
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  • European futures are on the front-foot with US futures in-fitting after Tuesday's regional banking pressure.
  • DXY continues to slip as USTs advance pre-FOMC, NZD leads while EUR and GBP eye 1.1050 and 1.2550.
  • Crude benchmarks came under marked pressure despite limited fresh catalysts as focus remains on the broader growth outlook.
  • "Several House GOP leadership sources said they would want to see the Senate pass a short-term debt-limit hike...
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  • APAC stocks were mostly negative following the losses on Wall St amid regional bank jitters which resulted in the regional banking ETF closing down by over 6%.
  • White House said they have the tools necessary to keep the banking system safe and the FDIC will continue to monitor the banking situation.
  • European equity futures are indicative of a higher open with the Euro Stoxx 50 +0.5% after the cash market closed lower by 1.5%...
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  • European bourses mostly softer in catch-up trade from the long weekend, US futures similar with attention on the Fed, debt ceiling & earnings
  • AUD outperforms after a RBA hike and hawkish guidance, DXY picking up above 102.00 after pivoting the figure while EUR & GBP fade
  • EGBs softer in corrective post-ISM trade though off lows as the ECB BLS sparked a dovish reaction
  • Subsequently, the EZ Flash HICP measure saw little sustained...
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  • APAC stocks traded with a slight positive bias as many of the regional participants returned to the market from the long weekend.
  • The RBA surprised markets with a 25bps rate increase, while the central bank's language remained hawkish with the Board expecting some further tightening of monetary policy will be needed.
  • European equity futures are indicative of a mildly higher open with the Euro Stoxx 50 +0.2% after the index was unchanged...
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  • MON: South Korean Import/Export Growth (Apr), US S&P Global Manufacturing PMI Final (Apr), US ISM Manufacturing PMI (Apr), European Labour Day Holiday, UK Early May Bank Holiday
  • TUE: RBA Announcement, South Korean CPI (Apr), German Retail Sales (Mar), EZ Flash CPI (Apr), US Durable Goods R (Mar), New Zealand Jobs (Q1)
  • WED: FOMC Announcement, RBNZ FSR, CNB Announcement, BCB Announcement, Japan Constitution Day Holiday, EZ Unemployment (Mar), US ADP...
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  • European sentiment pressured by Flash-Prelim. growth data while earnings remain in focus
  • A dynamic that has eased somewhat since the EZ-wide figure, Euro Stoxx 50 -0.7%, with attention on upcoming US data points/earnings
  • AMZN initially rose but is currently -2% in pre-market with the focus on AWS; in Europe, banking names lag amid NatWest and yield action
  • DXY eclipsed 102.00 as JPY sinks as BoJ maintains ultra-easy policy and gives dovish...
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  • APAC stocks were positive after taking impetus from the rally on Wall St while the region also digested a slew of earnings, data and the BoJ.
  • BoJ kept policy settings unchanged, tweaked its forward guidance which remained dovish and announced it is to conduct a policy review.
  • Amazon shares initially rose by some 9% in after-hours trade post-earnings before dropping to losses of 2% with some highlighting the Co. signalling lower AWS...
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  • European bourses relatively contained but with an underlying positive skew after a deluge of earnings.
  • NQ outperforms post-META (+11% pre-market) with AMZN, among others, ahead.
  • DXY edges above 101.50 with antipodeans outperforming while JPY and CHF are undermined by yields.
  • EGBs remain subdued but have bounced off initial lows post-supply, USTs in-fitting pre-7yr/GDP
  • Crude consolidates with metals mixed overall...
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  • APAC stocks traded mixed with most of the major indices subdued amid the banking sector headwinds in the US and as participants digested a deluge of earnings releases.
  • European equity futures are indicative of a weaker open with Euro Stoxx 50 future -0.3% after the cash market closed lower by 0.7% yesterday.
  • DXY is lacking in direction, EUR/USD lingers around 1.1050, GBP/USD is back below 1.25, NZD outperforms peers.
  • US House voted 217 vs...
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  • European bourses are lower across the board, continuing the APAC tone with regional earnings impacting Industrial & Tech.
  • Stateside, futures are mixed with pronounced NQ outperformance with GOOGL +1.1% & MSFT +7.9% in pre-market trade.
  • SEK crushed after dovish 50bp Riksbank hike, DXY further below 101.50 with EUR & GBP extending while AUD lags.
  • Fixed benchmarks are contained but diverging slightly with EGBs slightly firmer while...
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  • APAC stocks were mostly lower after the losses on Wall St where banking sector fears resurfaced as First Republic Bank shares fell by 50%.
  • First Republic (FRC) is struggling to come up with a viable solution such as a sale of all or part of the bank, according to the FT.
  • US equity futures found some reprieve overnight from big tech earnings; Alphabet +1.7% after-hours, Microsoft +8.5%.
  • European equity futures are indicative of...
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  • European bourses are under pressure continuing the APAC handover with drivers light ex-earnings.
  • SMI outperforms following Nestle, Novartis and ABB while Banking names lag after UBS and Santander.
  • Stateside, futures are lower; FRC -19.5% in pre-market as deposits miss expectation.
  • DXY firmer but at the mid-point of the day's range with JPY outperforming while AUD lags once again
  • Core debt is bid across the board with...
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