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  • Asian equities saw mixed performance with the Nikkei 225 supported by domestic data while soft Caixin PMI weighed on the Shanghai Comp.
  • AUD underperformed due to soft Chinese data despite strong Australian numbers. Polls remain in focus for GBP
  • Looking ahead, highlights include Eurozone and UK Mfg. PMI, ADP, ISM Mfg. PMI, DoEs and a slew of central bank...
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  • The latest YouGov has projected the UK Conservative party to fall 16 seats short of an overall majority with 310 seats
  • Asian equities traded relatively mixed as China returned to market and was greeted by encouraging PMI data
  • Looking ahead, highlights include Eurozone CPI, Canadian GDP, Chicago PMI, ECB’s Coeure, Lautenschlager, Fed’s...
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  • EUR saw pressure overnight amid reports Greece could opt out of their next payment if creditors fail to agree on debt relief
  • Asian equities were relatively subdued overnight due to holiday-thinned trading conditions
  • Looking ahead, highlights include German regional & national CPIs, US Personal Spending, PCE data

ASIA

Asia equity markets traded subdued...
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Asian equities saw an indecisive session amid holiday-thinned conditions while North Korea conducted another missile test

FX markets were also relatively rangebound with the USD-index holding onto Friday’s gains

Looking ahead, highlights include ECB’s Draghi. UK and US markets closed.

**Desk will shut at 1630BST on Monday 29th and reopen at 2200BST for Asia-Pac Coverage on May 29th. (See website for full...
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The early part of the week will see lower liquidity with the US and UK markets closed on Monday, and China away on both Monday and Tuesday.

US: -

While the market is almost certain that the FOMC will hike rates by 25bps at its mid-June meeting, Fed Funds Futures are still only implying a rate of around 1.25% in January 2018, indicating doubts around the Fed’s March guidance that it is on course to lift rates to 1.25-1.50% in 2017.

In particular, per the Fed’s May...
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  • Asian equities traded broadly softer with underperformance in the ASX amid OPEC-inspired softness in energy names
  • GBP/USD trades softer as the Labour Party continues to gain ground on the Conservatives ahead of next month’s election
  • Looking ahead, highlights include US Durable Goods, University of Michigan and ECB’s Coeure

ASIA

Asia equity markets...
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  • FOMC Minutes saw USD and treasury yields back up after the FOMC thought it was prudent to wait for further evidence that recent weak data was transitory before hiking again
  • The subsequent upside in US equities filtered tspanough to Asia-Pac trade while WTI and Brent crude saw mild gains ahead of OPEC
  • Looking ahead, highlights include UK GDP, OPEC Meeting, Fed’s Brainard and ECB’s...
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Key Points: -

- The Federal Open Market Committee (FOMC) thought it was prudent to wait for further evidence that recent weak data was transitory before hiking again.

- Officials said they expected weakness would pass and that it would “soon be appropriate” to raise rates if those expectations were met.

- In general, Fed officials said their assessment of the economy had changed little since the March policy meeting, with the labour market continuing to improve and risks...
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  • Asian bourses traded mixed with downside in Chinese indices after Moody’s downgraded China’s Sovereign rating
  • UK PM May said UK terror tspaneat level has been raised to critical from severe, which suggests a further attack could be imminent
  • Looking ahead, highlights include US Building Permits, Existing Home Sales, DoE Inventories, FOMC Minutes, BoC Rate Decision, ECB’s Praet and Draghi
  • ...
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  • Asian equities traded with a mildly cautious tone amid reports of a terrorist incident in Manchester with macro newsflow otherwise light
  • In FX, reports of the Manchester explosion triggered safe-haven flows into JPY with USD/JPY briefly falling below 111.00, while GBP/JPY was the notable underperformer
  • Looking ahead, highlights include Eurozone PMIs, German IFO and a slew of central bank...
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  • Asian equities traded mostly higher despite ongoing geopolitical concerns with outperformance in the ASX amid upside in energy and material names
  • GBP/USD slipped back below 1.3000 as PM May’s lead in the latest YouGov poll narrowed
  • Looking ahead, highlights include Fed’s Kashkari and Harker

ASIA

Asia equity markets sspanugged off the geopolitical concerns...
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  • Asian equities traded with little in the way of firm direction amid light newsflow after US stocks posted a modest rebound from Wednesday’s losses
  • GBP staged another ‘flash crash’ falling around 100 pips in 12 seconds during US hours amid no new fundamental news
  • Looking ahead, highlights include Canadian retail sales, ECB’s Praet, Coeure, Constancio and Fed’s...
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  • Asian equities took the lead from their US counterparts whereby sentiment was hampered by the ongoing political tensions in Washington
  • Subsequently, the USD-index continued to drift lower while chances of a June Fed hike begin to recede
  • Looking ahead, highlights include UK retail sales, Philadelphia manufacturing, Fed’s Bullard, Mester, ECB’s Mersch, Draghi and...
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  • Asian equities traded with caution after US equity futures saw pressure following the latest developments in the FBI saga
  • JPY strengthened as the cautious tone triggered flows into safe-haven assets which saw USD/JPY break firmly below 113.00
  • Looking ahead, highlights include the UK labour report, Eurozone CPI and the DoE Inventory report

ASIA

Asian...
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  • Asian equities failed to benefit from the energy-inspired gains seen on Wall Street with the Nikkei 225 stopping just shy of 20,000
  • USD/JPY and JPY-crosses traded choppy with the early upside reversed, as sentiment soured and spurred flows into safe-haven JPY
  • Looking ahead, highlights include UK inflation, German ZEW, US Building Permits, Housing Starts, ECB’s Nowotny and...
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  • Asian equities traded with no firm direction as the region digested mixed Chinese data and mounting geopolitical tensions
  • In FX, JPY was supported by safe-haven flows while NZD was lifted by upbeat domestic retail sales
  • Looking ahead, highlights include US NY Empire State Manufacturing Index and ECB’s Praet

ASIA

Asian equity markets traded mixed amid...
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  • Overnight trade saw an overall lack of pertinent macro newsflow with Asian equities subsequently trading with little in the way of firm direction
  • Similar price action was also observed in FX markets with GBP/USD unable to recoup yesterday’s BoE-inspired losses
  • Looking ahead, highlights include US CPI, Retail Sales, Uni. Of Michigan, Fed’s Evans, Harker and ECB’s...
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  • NZD/USD fell over a point to 11-month lows as the RBNZ struck a more dovish than anticipated tone and remained in favour of accommodative policy
  • Asian equities were kept afloat by upside in energy names in the wake of yesterday’s DoE report
  • Looking ahead, highlights include UK Industrial and Manufacturing Production, BoE policy announcement, ECB’s Constancio, Praet and Fed’s...
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  • Asian equities traded modestly higher, sspanugging off some of the North-Korean inspired geopolitical concerns seen late in the US session
  • The USD-index pulled back from recent advances which provided some reprieve for its major counterparts and saw EUR/USD approach 1.0900
  • Looking ahead, highlights include DoEs, RBNZ rate decision, ECB’s Draghi and Fed’s...
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  • Asian equities traded with little in the way of firm direction with macro newsflow particularly light overnight
  • USD held onto yesterday’s gains as the USD-index remained above the 99.00 level while AUD underperformed amid downbeat domestic retail sales
  • Looking ahead, highlights include US JOLTS, APIs, Fed’s Kaplan and Rosengren

ASIA

Major Asian stock...
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  • French Presidential Candidate Macron became the President Elect after he won the 2nd round run-off
  • Asian equities traded mostly higher with outperformance in the Nikkei 225 as Japanese participants returned from holiday
  • Looking ahead, highlights include potential comments from Fed’s Bullard and Mester

ASIA

Asia equity markets traded mostly higher as the...
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The final round of the French election will set the tone early in the week. Centrist independent Emmanuel Macron and the far-right National Front’s leader Marine Le Pen face off, with the polls set to close at 20:00 CET on Sunday 7th May. Polls have hovered around a 60:40 split in favour of Macron for some time now although there is a notable amount of “undecided” voters, with a low participation rate expected. Exit polls are expected to be released by mainstream media shortly after 20:00 CET.

Chinese...
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  • Asia equity markets traded negative amid commodity weakness in which oil continued its sell-off, while the looming US NFP data also added to the subdued tone
  • The greenback’s attempts to nurse recent losses were futile, with the USD-index contained below the 99.00 level.
  • Looking ahead, highlights include US Jobs Report, Fed’s Fischer, Williams, Evans, Yellen and...
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  • The Fed kept rates unchanged as expected while maintaining an overall upbeat view of the economy and labour market
  • This subsequently provided support to the USD with USD/JPY moving closer to 113.00 and EUR/USD below 1.0900
  • Looking ahead, highlights include Eurozone services PMIs, Norges Bank rate decision, US trade data, factory orders and a slew of ECB speakers

Fed kept rates...
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  • Asian equities traded with little in the way of firm direction amid looming risk events and a slew of market closures overnight
  • GBP has lost some ground heading into the EU open amid reports that UK PM May is said to have been barred from discussions on Brexit terms
  • Looking ahead, highlights include the FOMC rate decision, ADP Employment Change and...
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