Apr 4, 2017 - Market Update

Short recap

Asia on a safe side

Europe opening higher

Risk off ongoing (Russia, FR elections (GE-FR spread widens to 67 bps) – USDJPY declined and we see preference for liquidity

EURUSD not picking up as peripheral spreads are widening due to ECB lowering bond purchases

Fed’s Dudley not comfortable with student debt that may have a negative effect on spending and ability to buy houses

S&P 500 support at 2142 (50 DMA) and 2350 level

Hyundai and Kia decreased the production in their China based factories on the back of rising competition from local automakers and tensions between both countries

Imagination Technologies down 70% yesterday as Apple decided to end the cooperation

Danone buying US based WhiteWave Foods that produces organic food

Mylan facing a new class action lawsuit

Canadian SNC-Lavalin interested in UK based WS Atkins (GBP 2.1 bln)

Linde considering to use all means to get the merger with Praxair through

Akzo Nobel still not satisfied with PPGproposal

10-yr Trys yield at 2.33%

10-yr Bunds yield at 0.28%

2-yr Bunds yield back to -0.80%

Gold higher as USD gets a bit weaker, drop in stocks and interest in bonds

Market positioning ahead of Trump-Xi meeting and after Russia bomb attack

Data

EU to make a formal statement on Brexit about what they want to achieve

ECB Draghi speaking

Daniel Tarullo (Tue at 2030 GMT)

EZ: Retail sales expecting to head slightly higher

US: Factory orders to rebound after small dip in March

Wed:

FOMC Minutes

Thu:

ECB Draghi, Weidmann and Praet speaking (especially Draghi’s remarks on inflation will be closely watched)

ECB Minutes

Trump to meet Chinese president

Trump to use trade to wage on North Korea

Fri:

US NFPs

Fed Speakers this week:

Fred Williams, James Bullard

Apr 23 – French presidential elections

Apr 29 – EU Summit to sign off the Brexit negotiations guidelines – until then we won’t have clearer EU position on Brexit

May 7 – French presidential elections 2^nd round

Should you have any questions feel free to contact me anytime.

Good luck Champs!

Mr Hawk

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