-- Societe Generale in its early Tuesday economic news summary pointed out:
-- Mild risk-off, Brent briefly reclaims US$114/barrel after escalation in the Strait of Hormuz tests United States/Iran ceasefire. U.S. launches 'Project Freedom', using military force to protect the transit of merchant ships. Indonesian rupiah (IDR) and Indian rupee (INR) fall to new lows, prompting foreign exchange intervention by Bank Indonesia.
-- Reserve Bank of Australia hikes CRT by 25bps to 4.35%, signals pause. Statement: inflation likely to remain above target for some time, with risks tilted to the upside, including to inflation expectations. Governor Bullock: we're now in a position where we've got space, to be alert now to both sides of the risks to inflation. MPR raises CRT to 4.7% by December 2026. Three-year ACGB -4bps at 4.62%. AUD/USD -0.2% at 0.7150.
-- Swiss consumer price index up to 0.6% year over year in April from 0.3% in March, core moderates to 0.3%, goods +0.5pp to -0.2%, services +0.2pp to 1.1%.
-- Currency Pulse: Sterling (GBP) positioned for Labour election "drubbing" in British local election, intervention caught out yen (JPY) shorts.
-- Week ahead: U.S. NFP, ISM services, trade balance, Michigan sentiment. Sweden's Riksbank forecast to stay on hold. Mexico's Banxico forecast to cut 25bps, Poland and Czech Republic forecast to stay on hold. CPI for South Korea, Mexico, Czech Republic, Sweden, and Hungary.
-- Nikkei closed, Eurostoxx futures -0.3%, EUR 10-year IRS -2.5bps at 3.10%, Brent crude -0.7% at US$113.6/barrel, Gold +0.6% at US$4,537/oz.