Societe Generale in its early Thursday economic news summary pointed out:
Brent, bond yields rebound up after renewed United States strikes around the Strait of Hormuz, Iran's IRGC targets U.S. airbase. President Trump dismisses pressure from the mid-term elections to strike a deal. U.S. Treasury 2s/10s flips from bull to bear flattening, Germany's Bund reclaims 3.0%, resistance 3.03%.
Federal Reserve's Cook: I am prepared to raise rates if the expected disinflation doesn't appear in timely manner. Fed's Jefferson: monetary policy well positioned to respond to economic developments based on incoming data, the evolving outlook and balance of risks.
Bank of Korea hawkish hold, keeps key rate at 2.50%. Governor Shin: need for a rate hike at the appropriate time. USD/KRW +0.2% at 1,503.
Day ahead: U.S. PCE, SocGen forecasts headline 0.6% month over month (4.0% year over year), core 0.3% month over month (3.3% year over year). Weekly jobless claims, durable goods orders, Q1 gross domestic product second read. Fed speakers Williams, Musalem, Barkin. European Central Bank's Lane, Lagarde, Cipollone, Schnabel. ECB accounts of the April meeting. Italy benchmark auction. Bank of England's Breeden. South Africa's SARB forecast to raise rates by 25bps.
Nikkei -0.5%, EUR 10-year IRS +2bps at 3.04%, Brent crude +2.8% at US$97.1/barrel, Gold -1.4% at US$4,391/oz.