• European bourses are firmer across the board, Euro Stoxx 50 +1.3%, benefitting from the perceived less-hawkish Fed and associated Wall St./APAC performance.
• Stateside, futures are softer across the board though the likes of the ES remain in relative proximity to overnight best levels, ES -0.5%.
• DXY finds its feet post-FOMC, to the detriment of G10 peers incl. GBP lagging pre-BoE.
• Core debt has been choppy though Bunds and Gilts have resumed an upward trend while USTs are modestly flatter.
• WTI and Brent have been pivoting relatively narrow ranges ahead of today's JMMC/OPEC+ gatherings, currently posting gains of USD 0.30/bbl.
• Looking ahead, highlights include OPEC+ (12:30BST/07:30ET), BoE Policy Announcement.

As of 11:15BST/06:15ET

LOOKING AHEAD

• OPEC+ (12:30BST/07:30ET), BoE Policy Announcement & ECB's Lane.
• Click here for the Week Ahead preview

GEOPOLITICS

RUSSIA-UKRAINE

NEGOTIATIONS/TALKS

• Russian negotiator says negotiations with Ukraine are difficult, Ukrainian representatives are "rolling back" the agreements reached, via Reuters.
• Russia's Kremlin says humanitarian corridors from Azovstal are working today.

DEFENCE/MILITARY

• Russia says that two villages on Russian territory have been shelled by Ukraine, via Ria citing the regional governor; no casualties.
• Al-Jazeera correspondent notes of shelling of the Azovstal industrial complex in Mariupol, Ukraine, and smoke rising.

ENERGY/ECONOMIC SANCTIONS & UPDATES

• Russian Foreign Ministry spokeswoman warned that Finland and Sweden will turn into an arena of confrontation between NATO and Russia if they join NATO, according to AJA Breaking.
• Head of Ukraine's Parliamentary Energy Committee says when Europe stops buying Russian gas, Ukraine will stop transporting it across the country, via Reuters.

OTHER

• US condemned North Korea's recent missile launch and urged Pyongyang to engage in dialogue, while the State Department said the US may discuss the deployment of an additional THAAD system to South Korea, according to Yonhap.
• US State Department said the US is preparing equally for both scenarios of returning to the nuclear agreement with Iran or not reaching an agreement, according to Sky News Arabia

EUROPEAN TRADE

EQUITIES

• European bourses are firmer across the board, Euro Stoxx 50 +1.3%, benefitting from the perceived less-hawkish Fed and associated Wall St./APAC performance.
• Stateside, futures are softer across the board though the likes of the ES remain in relative proximity to overnight best levels, ES -0.5%.
• Back to Europe, sectors are mostly positive with Real Estate and Tech the outperformers while defensive-biased names are lagging.

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FX

• Dollar finds its feet after FOMC fall out on less hawkish than factored in policy guidance from Fed chair Powell, DXY back within reach of 103.000 vs 102.340 low.
• Aussie* undermined by much weaker than forecast building approvals, mixed trade, technical and psychological resistance; AUD/USD closer to 0.7200 than 0.7250 and AUD/NZD fades just shy of 1.1100.
• Sterling weak on super BoE Thursday on prospects that MPC may be more circumspect after latest 25 bp hike; Cable down around 1.2550 vs 1.2635 peak and EUR/GBP firm on 0.8400 handle.
• Euro underpinned by rebound in EGB yields and option expiries as 1.8 bn rolls off 1.0600.
• Loonie cushioned by crude alongside Norwegian Crown after no change in rates by Norges Bank that is sticking to schedule for next quarter point hike in June; USD/CAD mostly sub-1.2750 and EUR/NOK capped below 9.9000.
• Turkish Lira deflated as CPI soars even further beyond target and PPI over 100%.
• Polish Zloty awaits 100 bp hike from NBP and Czech Koruna 50 bp courtesy of CNB.
• Brazil's Central Bank raised the Selic rate by 100bps to 12.75%, as expected, while it left the door open to further monetary tightening at a slower pace and considered it appropriate to advance the process of monetary tightening significantly into even more restrictive territory. BCB also stated that inflationary pressures arising from the pandemic period have intensified due to problems related to the new COVID-19 wave in China and the Ukraine war, according to Reuters.
• Norges Bank: Key Policy Rate 0.75% (exp. 0.75%, prev. 0.75%). Reiterates that the next hike will “most likely” occur in June. Adds, the Krone has recently depreciated and is now weaker than projected.

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Notable FX Expiries, NY Cut:

• EUR/USD: 1.0500-10 (1.6BN), 1.0570-80 (810M), 1.0600 (1.8BN), 1.0675 (290M), 1.0750-55 (1.0BN), 1.0765 (600M) Click here for more detail.

FIXED INCOME

• Very volatile moves in bonds between the FOMC, BoE and NFP, with Treasuries flipping from bull-to-bear steepening.
• 10 year note soft within wide 119-09+/118-19+ range, Bunds flat between 153.79-152.74 parameters and Gilts firm in catch-up trade either side of 118.00.
• Bonos and Oats off best levels after digesting Spanish and French multi-tranche debt issuance

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COMMODITIES

• WTI and Brent have been pivoting relatively narrow ranges ahead of today's JMMC/OPEC+ gatherings, currently posting gains of USD 0.30/bbl.
• OPEC+ is expected to maintain its policy of increase the output quota by 432k BPD in June, lifted from the 400k BPD in May as part of the pacts terms; newsquawk preview here.
• Spot gold is bid but lost the USD 1900/oz mark in early-European trade, a figure it has spent the morning modestly below.
• Norway's labour unions said initial wage talks with oil firms broke down and they will proceed with mediation, according to Reuters.

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NOTABLE EUROPEAN DATA

• EU S&P Global Construction PMI (Apr) 50.4 (Prev. 52.8)
• UK S&P Global/CIPS Services PMI Final (Apr) 58.9 vs. Exp. 58.3 (Prev. 58.3); Composite PMI Final (Apr) 58.2 vs. Exp. 57.6 (Prev. 57.6)

NOTABLE US HEADLINES

• Click here for the US Early Morning note.

CRYPTO

• Bitcoin is subdued and returned to existing session lows of USD 39.4k amid coverage of the below WSJ story; more broadly, Bitcoin has been steady at the lower-end of the morning's ranges.
• US Senators Warren and Smith have sent a letter to Fidelity over its Bitcoin 401(k) plan which would allow investors to allocate as much as 20% of their portfolios into Bitcoin, according to WSJ; senators suggest that Bitcoin could be too risky for savers.

APAC TRADE

EQUITIES

• APAC stocks traded positively as the region reacted to the FOMC meeting where the Fed hiked rates by 50bps as expected and announced to begin reducing the balance sheet from next month, while Fed Chair Powell dispelled concerns of a more aggressive 75bps rate hike.
• ASX 200 was firmer with gold miners buoyed by higher prices and as the energy sector benefitted from the proposed Russian oil embargo.
• Hang Seng and Shanghai Comp were higher following the mainland’s return from the Labour Day holidays but with advances initially contained by several headwinds including an extension of COVID restrictions in Beijing, the deterioration in Caixin Services and Composite PMIs, while the US SEC added over 80 companies to its list for possible delisting and HKMA also hiked its base rate by 50bps in lockstep with the Fed.

NOTABLE APAC HEADLINES

• PBoC injected CNY 10bln via 7-day reverse repos with the rate at 2.10% for a CNY 40bln net daily drain.
• PBoC set USD/CNY mid-point at 6.5672 vs exp. 6.5695 (prev. 6.6177)
• HKMA raised its base rate by 50bps to 1.25%, as expected, following the earlier Fed rate hike, according to Bloomberg.
• Beijing city council official reports 544 local cases and 39 new local cases as of 15:00 on Thursday, an official adds transmission routes are yet to be fully blocked.

DATA RECAP

• Chinese Caixin Services PMI (Apr) 36.2 vs. Exp. 40.0 (Prev. 42.0); Caixin Composite PMI (Apr) 37.2 (Prev. 43.9)
• Australian Building Approvals (Mar) -18.5% vs. Exp. -12.5% (Prev. 43.5%, Rev. 42.0%)
• Australian Trade Balance G&S (A$) (Mar) 9314M AU vs. Exp. 8500.0M AU (Prev. 7457.0M AU)
• Australian Goods/Services Exports (Mar) 0% (Prev. 0%); Imports (Mar) -5% (Prev. 12.0%)