Headlines:
- Risk keeps in a more positive spot so far on the day
- Elon Musk says Twitter deal put on hold, shares down 17% in pre-market
- ECB's Centeno: APP should end in first few weeks of Q3, rate hike "some time after"
- ECB's de Guindos doesn't want to get sucked into July rate hike debate
- South Korea reports that North Korea appears ready for another nuclear test
- Eurozone March industrial production -1.8% vs -2.0% m/m expected
- Spain April final CPI +8.4% vs +8.4% y/y prelim
- France April final CPI +4.8% vs +4.8% y/y prelim
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 1.2%
- US 10-year yields up 8.5 bps to 2.90%
- Gold down 0.2% to $1,817.33
- WTI crude up 1.6% to $107.84
- Bitcoin up 6.6% to $30,436
After the late comeback by US equities yesterday, risk appetite has improved in trading today with equities holding higher on the day.
European indices are keeping gains of over 1% while US futures are also seeing similar gains with Nasdaq futures leading the charge, up 1.7% currently. That said, it still has been a rough week overall for US stocks so this is but a bit-part reprieve.
The bid in bonds is also being cast aside as sellers return, after four straight days of "absence" this week. 2-year Treasury yields are up 6.4 bps to 2.586% while 10-year Treasury yields are up 9.1 bps to 2.907%.
In FX, there isn't too much change as the dollar is sitting more mixed but mostly just giving up some light ground after its unrelenting advance this week. USD/JPY is perhaps the notable mover as it is up 0.5% to 129.00, bouncing off a drop just below 128.00 yesterday.
Elsewhere, commodity currencies are the ones benefiting the most amid the improved risk mood. USD/CAD is down 0.3% but finding it tough to break below 1.3000 amid large option expiries. Meanwhile, AUD/USD is up 0.5% to 0.6890 but it doesn't really mean much when you consider the technical picture.
