• European bourses are firmer across the board, Euro Stoxx 50 +1.5%, in a morning of quiet newsflow
• US futures have given up some of their initial upside, but remain modestly firmer, ES +0.2%
• DXY touches 100.00 lifted amid the ongoing rise in yields with FX peers mixed, RUB resilient despite emergency rate cut
• Crude is moving in-line with broader sentiment awaiting Russia-Ukraine updates with online talks ongoing
• Looking ahead, highlights include the Canadian Labour Market report and ECB's Panetta (Note, the ECB is in its quiet period)

As of 11:10BST/06:10ET

LOOKING AHEAD

• Canadian Labour Market report and ECB's Panetta (Note, the ECB is in its quiet period)
• Click here for the Week Ahead preview.

GEOPOLITICS

RUSSIA-UKRAINE

NEGOTIATIONS/TALKS

• Ukraine intends to establish up to 10 humanitarian corridors on Friday, those leaving Mariupol will need to use private vehicles.
• Ukrainian advisor Podolyak says negotiations with Russia continue online constantly, but the mood changed after Bucha events, via Reuters.
• Kremlin says it does not understand EU concerns about European countries paying for Russian gas in RUB, adds Commission President von der Leyen probably needs more information. On planned EU ban of Russian coal, says coal is in high demand. Special operation in Ukraine could be completed in the foreseeable future, given aims are being achieved and work is being carried out by peace negotiators and the military.

DEFENCE/MILITARY

• EU ready to release EUR 500mln for arms to Ukraine, according to AFP citing EU chief.
• Russia says it has destroyed a training centre for foreign mercenaries within Ukraine, was located north of Odesa, via Tass.

ENERGY/ECONOMIC SANCTIONS & UPDATES

• Japan's Industry Ministry plans to reduce Russian coal imports gradually while looking for alternative suppliers, according to Reuters.
• Ukraine PM says they have large stocks of grain, cereals and vegetable oil. Are able to provide themselves with food; this year's harvest will be 20% less YY.
• Ukraine gas grid warns that Russian actions could impact gas flows to Europe, via Reuters.
• German President Steinmeier has called for a war crimes tribunal against Russian President Putin and Foreign Minister Lavrov, via Spiegel.
• EU has begun work on the sixth package of Russia sanctions, according to a Bloomberg reporter; reporter "struggles to see how further energy sanctions can be avoided".

EUROPEAN TRADE

EQUITIES

• European bourses are firmer across the board, Euro Stoxx 50 +1.5%, bouncing in a morning of quiet newsflow with the broader tone modestly risk-on.
• Albeit, benchmarks are still negative on the week and some way from earlier WTD peaks; unsurprisingly, sectors are all in the green with defensive-bias names lagging.
• Stateside, futures are similarly in the green, ES +0.2%, though magnitudes are more contained ahead of a limited US schedule to round off the week.
• Click here for more detail.

FX

• DXY touches 100.000 as US Treasury yields continue to soar and curve steepen, but unable to break barrier.
• Kiwi underperforms awaiting NZIER Q1 survey, while Aussie holds up better after hawkish warning in RBA FSR; NZD/USD around 0.6950, AUD/USD nearer 0.7460.
• Yen sub-124.00 as Japanese export supply is absorbed, Euro supported by bids circa 1.0850 and Sterling treading water above 1.3000.
• Rouble relatively resilient in the face of 300 bp CBR rate reduction as it remains above pre-conflict highs.
• Click here for more detail.

Notable FX Expiries, NY Cut:

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FIXED INCOME

• Choppy trade in bonds approaching the end of another very bearish week.
• Bunds and Gilts nurse losses mostly above par around 157.00 and 120.00 handles vs fresh cycle lows of 156.40 and 119.83.
• US Treasuries most seeing red, but curve less steep in correction after hawkish FOMC minutes and Fed commentary, via Brainard and Bullard especially
• Click here for more detail.

COMMODITIES

• WTI and Brent are bolstered amid broader sentiment, though crude/geopolitical specific developments have been limited
• In-fitting with equities, the benchmarks are negative on the week and some way shy of best levels as such.
• New York will suspend the state gas tax from June 1st to December 31st, according to Reuters.
• Barclays raises oil forecasts by USD 7-8/bb assuming no material disruption in Russian supplies beyond Q2 2022, according to Reuters.
• Spot gold is marginally firmer, but, remains drawn to USD 1930/oz after marginally eclipsing the level overnight; base metals bid in-line with sentiment.
• Click here for more detail.

CENTRAL BANKS

• RBA Financial Stability Review: important that borrowers are prepared for an increase interest rates; global asset markets are vulnerable to larger-than-expected rate increases, via Reuters.
• RBI leave rates unchanged as expected, retains "accommodative" stance as expected; will focus on withdrawing accommodation going forward. RBI is to restore LAF corridor to 50bps and floor to be constituted by SDF, according to Reuters.
• CBRT April survey sees Turkish End-Year CPI at 46.44% (prev. 40.47%)
• CNB Minutes (March): Dedek and Michl voted in the minority for stable rates. Board assessed risks and uncertainties of winter forecast as being markedly inflationary, particularly in short-term
• CBR cuts its Key Rate to 17.00% (prev. 20.00%) as of April 11th; holds open the prospect of further key rate reduction at its upcoming meetings.

NOTABLE US HEADLINES

• Canadian budget sees 2022/23 deficit of CAD 52.8bln vs CAD 58.4bln in Dec; sees 2021/22 deficit of CAD 113.8bln vs CAD 144.5bln. Click here for more detail.
• Click here for the US Early Morning note.

CRYPTO

• Bitcoin is contained and unable to derive traction either way from the broader risk tone.
• Strike payment platform launches Shopify (SHOP) integration, which allows merchants to accept Bitcoin (BTC), according to Bloomberg.

APAC TRADE

EQUITIES

• APAC stocks were choppy and eventually conformed to a mixed picture; some weakness was seen shortly after the Chinese cash open.
• ASX 200 bucked the trend and was propped up by its energy and gold names.
• Nikkei 225 was choppy and moved in tandem with action in USD/JPY whilst the KOSPI was weighed on by its chip and telecoms sectors.
• Hang Seng remained pressured by losses across its large constituents - Alibaba and JD.com.
• Shanghai Comp swung between gains and losses but overall remained supported by reports from China's Securities Journal which noted of a potential PBoC RRR in Q2.

NOTABLE APAC HEADLINES

• China's Shanghai will continue a new round of citywide COVID tests on Friday as the number of positive cases has remained high. There’s one critical case, according to Global Times.
• PBoC injected CNY 10bln via 7-day reverse repos with the rate at 2.10% for a net neutral daily position
• PBoC set USD/CNY mid-point at 6.3653 vs exp. 6.3658 (prev. 6.3659)
• RBI Governor Das says India's growth outlook assumes oil at USD 100/bbl, according to Reuters.