Headlines:
- Russia says that it is putting more energy into peace talks than Ukraine is
- Russia says that talks with Ukraine are continuing
- UK military intelligence: Russian invasion of Ukraine has largely stalled on all fronts
- ECB's Lagarde: Inflation increasingly likely to stabilise at 2% target over medium-term
- ECB's Villeroy: There is no recession risk despite high uncertainty
- Toyota revises down global production for April due to chip shortage, warns of uncertainty
- Italy reportedly considering blocking export of raw materials
- Eurozone February final CPI +5.9% vs +5.8% y/y prelim
- Switzerland February trade balance CHF 5.95 billion vs CHF 3.18 billion prior
Markets:
- AUD leads, USD lags on the day
- European equities mixed; S&P 500 futures down 0.4%
- US 10-year yields down 5 bps to 2.135%
- Gold up 0.8% to $1,943
- WTI up 4.9% to $99.72
- Bitcoin down 1.2% to $40,710
The session featured some mixed tones in the market as we continue to digest the post-Fed sentiment while Russia-Ukraine talks are also still ongoing.
The dollar failed to really get off the floor as it sees a slight retreat across the board, with EUR/USD up from 1.1030 to 1.1050-60 levels. USD/JPY is also down a touch as bond yields retreat further post-Fed, down from 118.70 to 118.50. This comes as 10-year Treasury yields cool off from a high of 2.20% yesterday to 2.11% to 2.13% this morning.
The pound is a notable gainer though, as the currency stays underpinned ahead of the BOE. Cable is testing 1.3200 and is up 0.4% on the day, as traders are perhaps positioned for a potential hawkish move by the central bank. 50 bps, anyone?
Meanwhile, AUD/USD is up 0.7% and extending gains from 0.7310 to 0.7340 after a strong Australian jobs report.
Equities are keeping more tentative though after a modest start and a positive showing yesterday. European indices are mixed but have pared most of its earlier gains while US futures are down slightly on the day.
It's tough to consolidate the market picture at the moment but as the flows settle in over the next few days, perhaps there will be more clarity as to what the next key focus will play out to be.
