• APAC stocks gained after the firm lead from the US but with advances in the region capped by disappointing earnings from Amazon and Apple.
• European equity futures are indicative of a higher open with Eurostoxx 50 +1.5% after the cash market closed higher by 1.1% yesterday.
• DXY has pulled back from recent advances but retains 103 status, activity currencies outperform G10 peers.
• Crude futures held on to yesterday's gains after Germany dropped its opposition to an EU embargo on Russian oil.
• Looking ahead, highlights include EZ Flash CPI and GDP, US March PCE, US Chicago PMI, CBR Announcement, Speech from SNB’s Jordan, Supply from Italy
• Earnings from BBVA, BASF, AstraZeneca, NatWest, AbbVie, Exxon, Chevron, Bristol-Myers and Colgate-Palmolive.

US TRADE

• US stocks posted gains on Thursday after morning wobbles on the back of the surprise decline in US Q1 GDP subsided throughout the session.
• SPX +2.47% at 4,287, NDX +3.48% at 13,456, DJIA +1.85% at 33,916, R2K +1.79% at 1,917.
• Click here for a detailed summary.

NOTABLE US HEADLINES

• US President Biden said he is not concerned about a recession following GDP data, according to Reuters.
• US Commerce Secretary Raimondo said the GDP number is disappointing but not a trend and she is not surprised by the GDP number this quarter, according to Reuters.
• Apple Inc (AAPL) - Q2 2022 (USD): EPS 1.52 (exp. 1.43), Revenue 97.28bln (exp. 93.89bln); authorised additional 90bln of share buybacks. Click here for the full release. (Newswires) Shares fell 2.2% after market
• Amazon.com Inc (AMZN) - Q1 2022 (USD): EPS -7.56 (exp. 8.36), Revenue 116.4bln (exp. 116.3bln). Sees Q2 net sales USD 116.0bln-121.0bln (exp. 125.01bln). Click here for the full release. (Newswires) Shares fell 9.0% after market %

GEOPOLITICS

RUSSIA-UKRAINE

NEGOTIATIONS TALKS

• Ukrainian President Zelensky said Kyiv is ready for immediate negotiations for evacuation from the Azovstal plant, according to Sputnik.

DEFENCE/MILITARY/ASSISTANCE

• Ukrainian presidential aide said they have suffered serious losses but Russian losses are much worse, while the aide stated the military situation is difficult but controllable, according to Reuters.
• Two large explosions were heard in Kyiv, while there were also reports that two powerful blasts were heard in the Russian region of Belgorod bordering Ukraine, according to two witnesses cited by Reuters.

SANCTIONS/ENERGY/DIPLOMATIC

• Germany and Greece are reportedly set to provide additional gas for Poland and Bulgaria, according to FT.

FUND/OTHER

• China UnionPay has refused to work with Russia's Sberbank and halted talks with other Russian financial institutions targeted by sanctions, forcing them to scrap plans to issue UnionPay cards, according to Nikkei citing local press.
• MSCI said it will delete 20 constituents from the MSCI Russia IMI after feedback from market participants, according to Reuters.

OTHER

• Israel called on citizens to leave Moldova's breakaway state of Transnistria as soon as possible due to the deteriorating security situation, according to Israel's Ambassador to Moldova.

APAC TRADE

EQUITIES

• APAC stocks gained after the firm lead from the US where stocks looked past the surprise contraction in US GDP, but with advances in the region capped heading into month-end and next week's mass closures.
• ASX 200 was firmer as tech mirrored the outperformance of the Nasdaq stateside and with gold miners following closely behind after the precious metal reclaimed the psychological USD 1900/oz level.
• Hang Seng and Shanghai Comp were initially indecisive ahead of next week’s holiday closures including in the mainland where markets will remain closed through to Wednesday, while participants also digested the surprise contraction in Hong Kong’s exports and imports data. However, a surge in Hong Kong tech stocks and policy pledges by China's Politburo helped shake off the indecision.
• Nikkei 225 was closed for Showa Day.
• US equity futures were lacklustre following disappointing earnings from Amazon (-9% after-hours) and Apple (-2.2% after-hours); ES -0.3%
• European equity futures are indicative of a higher open with Eurostoxx 50 +1.5% after the cash market closed higher by 1.1% yesterday.

FX

• DXY is softer after cooling off from yesterday’s rally where it climbed to a 20-year high just shy of 104.00, before fading some of the gains and with softer yields conducive for the pullback in USD.
• EUR/USD found some reprieve overnight to reclaim the 1.0500 handle but with upside limited amid the continued overhang from the Ukraine war and ahead of EU GDP and CPI data.
• GBP/USD nursed losses and reclaimed 1.25 status.
• USD/JPY took a breather after its brief foray above 131.00, while Goldman Sachs sees further pressure for the JPY even if authorities intervene in FX unless there is a change to the BoJ’s YCC.
• Antipodeans edged higher against the greenback with firmer PPI data adding the inflationary narrative for Australia.
• Turkey plans zero-cost Lira funding and guarantees for foreigners.

FIXED INCOME

• 10yr UST futures were choppy amid the thinner market conditions during Asia trade but attempted to nurse some of the losses from the prior day’s bear steepening, as yields eased.
• Bunds languished below 155.00 after the recent selling pressure triggered by firm German CPI.

COMMODITIES

• Crude futures held on to yesterday's gains after Germany dropped its opposition to an EU embargo on Russian oil and with an oil ban seen as imminent, but with no date currently set.
• EU and White House officials told industry executives in recent weeks that they support long-term energy/LNG supply contracts with each other, according to WSJ.
• Exxon (XOM) downsizes staff as it prepares to exit Russia's Sakhalin-1 and the Co. has confirmed a force majeure declaration, according to Nikkei citing Exxon.
• Spot gold reclaimed the USD 1900/oz level as the DXY pulled back from 20-year highs.
• Copper was initially rebound before picking up alongside risk sentiment.
• MMG said community members invaded the Las Bambas copper mine again and the company is in control of critical infrastructure, while production remains suspended, according to Reuters.

CRYPTO

• Bitcoin prices are slightly softer and briefly retreated beneath 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 6.6177 vs exp. 6.6127 (prev. 6.5628)
• China Politburo said China's economy faces rising uncertainties and that challenges created by COVID and the Ukraine crisis are increasing, but it will strive to achieve social and economic targets. China will implement a package of policies to support COVID affected industries and small firms, as well as rollout measures to support healthy development of the platform economy, while it will also step up macro policy adjustments to stabilise the economy and examine more policy tools, according to Reuters.
• China and the US are reportedly negotiating on site auditing checks as delistings loom, according to Bloomberg.
• China's National Health Commission said China will not budge from its commitment to COVID zero but will instead optimise its response, while it was also noted that China needs to react more forcefully and quickly to prevent further outbreaks, according to Reuters.

DATA RECAP

• Australian PPI QQ (Q1) 1.6% (Prev. 1.3%)
• Australian PPI YY (Q1) 4.9% (Prev. 3.7%)

UK/EU

DATA RECAP

• UK Lloyds Business Barometer (Apr) 33 (Prev. 33)