Societe Generale in its "European Sunrise" note of Thursday highlighted:
Brent steady, G10 foreign exchange rangebound, EUR/USD hemmed in at 1.17 by option expiries, DXY capped by 98.43 (200dma). United States Senate confirms Kevin Warsh as Federal Reserve chair (54-45 vote). 10-year U.S. Treasury off 4.50% high, 30-year auction tailed 0.5bp, non-dealer bidding 88.3%.
European Central Bank's Lane: so far, the inflation impact of the Iran war has been relatively contained, wage negotiations haven't yet reacted to the jump in energy prices, not committed to a June hike or hold, to study the war fallout on growth/inflation.
U.S.-China pledge to build constructive, stable strategic ties, expand cooperation in trade. U.S. clears H200 chip sales. President Xi on Taiwan: the most important issue, mishandling it could lead to clashes or even conflict. Yuan (CNY) extends gains to 6.7816/USD.
United Kingdom Q1 gross domestic product growth 0.6% quarter over quarter (1.1% year over year). Private consumption 0.6%, government spending 0.4%, business investment 0.7%. Angela Rayner cleared by HMRC of deliberate wrongdoing over tax affairs, may run in the event of a leadership contest. EUR/GBP below 50dma (0.8670).
Latin America: USD/BRL +2.4% to 5.01 after reports linking Presidential candidate Flavio Bolsonaro to Daniel Vorcaro, former CEO of scandal-plagued lender Banco Master. S&P lowers Mexico outlook to negative citing 'very slow' fiscal consolidation.
Day ahead: U.S. retail sales and weekly jobless claims. Federal Reserve speakers Schmid, Hammack, Williams.
Nikkei -0.9%, EUR 10-year IRS -1bp at 3.10%, Brent crude +0.15% at US$105.8/barrel, Gold flat at US$4,694/oz.