• APAC stocks were higher across the board amid a slew of earnings updates and a dovish BoJ; US futs were supported by Meta (+18.3% after-hours).
• BoJ maintained policy settings and forward guidance, will conduct fixed-rate JGB buying operations on every working day.
• Russia is planning referendums on the official accession of the Donbas region in mid-May.
• European equity futures are indicative of a higher open with Eurostoxx 50 +0.6% after the cash market closed higher by 0.4% yesterday.
• DXY has extended its advances above 103, JPY lags post-BoJ, EUR/USD and GBP/USD remain depressed on 1.05 and 1.25 handles respectively.
• Looking ahead, highlights include Japanese Retail Sales, German State and National CPI, US GDP and PCE Advance, Riksbank announcement, Speeches from ECB’s de Guindos and Elderson, Riksbank's Ingves, US Supply.
• Earnings from Sabadell, Clariant, Saint-Gobain, Evolution Gaming, Barclays, Sainsbury's, Amazon, Apple, Intel, Twitter, Mastercard & McDonalds.

US TRADE

• US stocks were choppy and finished mixed on Wednesday as earlier strength faded into the close, aided by a chunky sell-side MOC imbalance.
• SPX +0.21% at 4,183, NDX -0.05% at 13,003, DJIA +0.19% at 33,301, R2K -0.35% at 1,883.
• Meta Platforms Inc (FB) - Q1 2022 (USD): EPS 2.72 (exp. 2.55), Revenue 27.9bln (exp. 28.20bln).Daily active users (DAUs) 1.96bln (exp. 1.94bln). Facebook monthly active users (MAUs) 2.94bln (exp. 2.95bln). Advertising rev. USD 27.00bln (exp. 27.48bln). Shares rose 18.3% after market
• Click here for a detailed summary.

NOTABLE US HEADLINES

• US senior administration official said US GDP data is expected to show smaller growth in Q1 than in Q4 and slower inventory growth is likely an issue after a large jump in the prior quarter, but added the data is anticipated to show very strong household balance sheets, household consumption and business investment. The official also noted that the data will also show "economic conditions are still very, very strong" and that Friday's personal consumption expenditure price index data is expected to reflect quite elevated headline inflation but core inflation is likely to be flatlined or lower, according to Reuters.
• The White House is said to be making a “last-ditch” effort to pass elements of the Build Back Better package, according to officials cited by the FT.

GEOPOLITICS

RUSSIA-UKRAINE

DEFENCE/MILITARY/DIPLOMATIC

• Russia is planning referendums on the official accession of the Donbas region in mid-May after the late-April original plans couldn't be met due to failures of the Russian forces on the front, according to Meduza.
• Russia will hold an informal UNSC meeting on May 6th regarding the situation on the ground in Ukraine, according to Sputnik.

SANCTIONS/ENERGY/ECONOMIC

• EU energy groups are reportedly preparing to meet Russian President Putin's terms for gas with Uniper and OMV planning rouble accounts, according to FT.
• KGHM Polska Miedź (KGH PW) said it sees no need to change production or investment plans due to the suspension of gas deliveries from Russia, while the gas used by the Co. comes from domestic sources, according to Reuters.

OTHER

• UK Foreign Secretary Truss said NATO's open-door policy is sacrosanct and if Sweden and Finland join NATO, they must be integrated as soon as possible. Truss stated that China needs trade with G7 and needs to play by the rules, while she said Russian sanctions show economic access to countries that do not play by the rules is no longer given, according to Reuters.
• Iran and China agreed to develop military cooperation, according to the Fars news agency.

APAC TRADE

EQUITIES

• APAC stocks were higher across the board amid a slew of earnings updates and a dovish BoJ.
• ASX 200 gained with mining stocks mostly underpinned following production updates.
• Nikkei 225 benefitted as the BoJ reaffirmed its dovishness and kept its ultra-loose policy.
• Hang Seng and Shanghai Comp are both higher but with gains capped in the mainland due to ongoing lockdown fears with Hangzhou city to conduct mass testing and after China's Qinhuangdao city in the Hebei province locked down its district due to COVID.
• US equity futures were quiet overnight although were supported post-Meta earnings.
• European equity futures are indicative of a higher open with Eurostoxx 50 +0.6% after the cash market closed higher by 0.4% yesterday.

FX

• DXY extended the move above 103.00 and its best level since January 2017, helped by the recent rise in yields ahead of next week’s FOMC, month-end USD buying signals and advances against the JPY.
• EUR/USD remained subdued amid dollar strength and after its fall beneath 1.0600.
• GBP/USD fell to a mid-2020 low but with further downside stemmed by support near 1.2500.
• USD/JPY surged above 129.00 after the BoJ maintained its ultra-dovish policy and tone.
• Antipodeans were pressured due to the dollar strength and after another consecutive weaker reference rate setting by the PBoC.

FIXED INCOME

• 10yr UST futures remained subdued after the bear-steepening in the US and a flat 5yr auction.
• Bunds were contained beneath the 155.50 level amid ongoing Ukraine-Russia concerns.
• 10yr JGBs gained after the BoJ doubled down on its efforts to cap yields and announced to conduct bond-buying special operations on every working day unless it is not expected.

COMMODITIES

• Crude futures were pressured after yesterday's indecision amid the standoff on rouble payments for Russian gas, while some European buyers have already begun paying in roubles.
• White House Press Secretary Psaki said they are exploring further options on gas prices and that all options remain on the table for cutting gas prices, according to Reuters.
• Oil loadings from Russia's western ports in April increased by 0.42mln BPD to 2.34mln BPD which is in line with loading plans, according to Reuters sources.
• Algerian Energy Ministry warned that any destination change for Algerian gas to Spain could mean a termination of the contract, according to state TV.
• Spot gold was kept subdued by a lack of haven appeal and with the dollar at multi-year highs.
• Copper marginally declined amid dollar strength and the eviction of protestors at Las Bambas.
• Majority of the Peruvian community that had camped inside MMG's Las Bambas copper mine and halted operations, have now been evicted, according to Reuters.

CRYPTO

• Bitcoin prices eked marginal gains overnight and oscillated around the 39,500 level.

NOTABLE APAC HEADLINES

• PBoC injected CNY 10bln via 7-day reverse repos with the rate at 2.10% for a net neutral position.
• PBoC set USD/CNY mid-point at 6.5628 vs exp. 6.5614 (prev. 6.5598)
• China's Qinhuangdao city locked down its district due to COVID-19, according to Bloomberg.
• BoJ kept policy settings unchanged as expected with rates at -0.10% and 10yr JGB yield target at 0%, while it is to conduct fixed-rate JGB buying operations on every working day aside from when bidding is not expected. BoJ left forward guidance on interest rates unchanged in which it expects short- and long-term policy rates to remain at present or lower levels and reiterated it will ease policy without hesitation as needed with an eye on the pandemic impact, while striving to sustain market stability and support corporate funding, according to Reuters.

DATA RECAP

• Japanese Industrial Production MM (Mar P) 0.3% vs. Exp. 0.5% (Prev. 2.0%)
• Japanese Retail Sales YY (Mar) 0.9% vs. Exp. 0.4% (Prev. -0.8%, Rev. -0.9%)
• New Zealand Business Confidence (Apr) -42.0% (Prev. -41.9%)
• New Zealand Activity Outlook (Apr) 8.0% (Prev. 3.3%)
• New Zealand Trade Balance (Mar) -392M (Prev. -385M, Rev. -691M)
• New Zealand Exports (Mar) 6.7B (Prev. 5.5B, Rev. 5.2B)
• New Zealand Imports (Mar) 7.1B (Prev. 5.9B, Rev. 5.9B)

UK/EU

NOTABLE EUROPEAN HEADLINES

• UK Chancellor Sunak hinted he could perform a U-turn and introduce a windfall tax on UK oil and gas companies unless they boost investment in new energy projects, according to FT
• ECB President Lagarde said the ECB has an unwavering commitment to deliver on its price target, according to the ECB.