• Sentiment in the equities complex hit after HKMA said it has been lowering its duration in US treasury holdings; the exchange fund has been diversifying into non-US assets; ES -0.7%, NQ -1%.
• Germany's CDU leader Merz fails to be elected as Chancellor, a decision which has sparked pressure in European bourses leading to underperformance in the DAX 40.
• USD on the backfoot, JPY leads the majors, EUR upside stalled in reaction to Merz...

• APAC stocks were mostly higher but with gains capped following disappointing Chinese Caixin Services PMI.
• European equity futures indicate a slightly lower open with Euro Stoxx 50 future down 0.1% after the cash market finished flat on Monday.
• DXY failed to hold above the 100 mark, EUR/USD sits on a 1.13 handle, USD/JPY was unable to maintain its footing above 144.
• Crude futures have clawed back nearly all the losses seen in reaction to the...

• US President Trump said he is willing to lower tariffs on China at some point. He answered no when asked if he plans to speak with Chinese President Xi this week.
• US President Trump reiterated that the Fed should lower interest rates and said he won’t remove Fed Chair Powell.
• European bourses are mixed but with price action fairly rangebound; FTSE 100 closed, with the UK on holiday; US futures entirely in the green.
• USD kicks the week off on...

• APAC stocks were ultimately mixed in holiday-thinned trade with most major markets in the region shut.
• US President Trump said he is willing to lower tariffs on China at some point. He answered no when asked if he plans to speak with Chinese President Xi this week.
• US President Trump reiterated that the Fed should lower interest and said he won’t remove Fed Chair Powell.
• European equity futures indicate a slightly lower cash market open...

• SAT: Australian Election
• MON: Hong Kong Holiday (Buddha's Birth), Japanese Holiday (Children's Day), UK Holiday (Bank Holiday); Swiss CPI (Apr), EZ Sentix (May), US ISM Services PMI (Apr), Turkish CPI (Apr)
• TUE: Chinese Caixin Services PMI (Apr), EZ Composite/Services Final PMI (Apr), Producer Prices (Mar), US International Trade (Mar), New Zealand Unemployment (Q1)
• WED: FOMC, BCB & CNB Policy Announcements, RBNZ Financial...

• China is said to be conducting an assessment on US trade negotiations and urged the US to demonstrate sincerity for trade talks, while it urged the US to correct mistakes regarding tariffs and noted it is currently evaluating possible US trade talks.
• US Secretary of State Rubio said the Chinese want to meet and talk, while he added those talks will come up soon and there's a broader question about how much we should buy from China going forward
• Japanese Finance...

• China is said to be conducting an assessment on US trade negotiations and urged the US to demonstrate sincerity for trade talks, while it urged the US to correct mistakes regarding tariffs and noted it is currently evaluating possible US trade talks.
• US Secretary of State Rubio said the Chinese want to meet and talk, while he added those talks will come up soon and there's a broader question about how much we should buy from China going forward
• Japanese Finance...

• Europe on holiday, US equity futures entirely in the green with sentiment boosted after strong META/MSFT results.
• DXY is a little firmer ahead of US data, JPY hit post-BoJ/Ueda.
• JGBs lead post BoJ/Ueda, USTs await Tier 1 data points.
• Crude continues to decline, XAU hit by the USD while base peers welcome the US tone post-Mag7.
• Looking ahead, US Challenger Layoffs, Jobless Claims & ISM...

• APAC stocks traded higher but with gains capped in severely thinned conditions owing to mass holiday closures across the region and in Europe for Labour Day.
• BoJ kept rates unchanged at 0.50% and provided some dovish rhetoric despite maintaining its rate hike signal.
• US is said to have reached out to China recently for tariff talks, according to Bloomberg citing an influential social media account.
• US stocks were boosted heading into the...

• US President Trump said he is going to make a fair deal with China on trade; predicts that China will eat the tariffs.
• Stocks trade tentatively ahead of a slew of key risk events, including US GDP/PCE and earnings from Microsoft & Meta.
• USD looks to build on Tuesday’s advances, EUR overlooks strong GDP, AUD is supported by hot CPI.
• USTs are contained into data & refunding, EGBs firmer but largely unaffected by a data...

• US President Trump said he is going to make a fair deal with China on trade; predicts that China will eat the tariffs.
• APAC stocks failed to sustain the positive handover from Wall St and traded mixed; Chinese official PMIs disappointed.
• European equity futures indicate a contained cash market open with Euro Stoxx 50 future flat after the cash market closed with losses of 0.2% on Tuesday.
• DXY is a touch higher and building on...

• US President Trump is expected to soften the impact of his automotive tariffs, according to WSJ citing sources.
• European bourses are mixed, whilst US equity futures trade incrementally higher, ahead of a slew of earnings.
• USD attempts to claw back some of Monday’s losses, CHF & JPY lags whilst the Loonie fares better post-election.
• Canada's ruling Liberals, led by Mark Carney, won the national election but will need to form a minority...

• US President Trump is expected to soften the impact of his automotive tariffs, according to WSJ citing sources.
• Canada's ruling Liberals, led by Mark Carney, won the national election but will need to form a minority government.
• APAC stocks were mostly in the green but with gains capped following the choppy performance stateside.
• European equity futures indicate a slightly positive open with Euro Stoxx 50...

• USTR’s office was reported on Friday to have prepared a framework for staggered reciprocal trade negotiations aimed at streamlining talks with 18 partners on a rolling basis over the next 2 months until the US’s July 8th deadline, according to WSJ.
• US Treasury Secretary Bessent said he had interaction with his Chinese counterpart in Washington last week and thinks the Chinese will see the tariff level as unsustainable and he also thinks there is a path to an agreement with China on tariffs,...

• USTR’s office was reported on Friday to have prepared a framework for staggered reciprocal trade negotiations aimed at streamlining talks with 18 partners on a rolling basis over the next 2 months until the US’s July 8th deadline, according to WSJ.
• US Treasury Secretary Bessent said he had interaction with his Chinese counterpart in Washington last week and thinks the Chinese will see the tariff level as unsustainable and he also thinks there is a path to an agreement with China on tariffs,...

• MON: Canada Election
• TUE: NBH Announcement, German GfK Consumer Sentiment (May), Spanish Flash CPI (Apr), Swedish GDP (Q1), EZ Sentiment Survey (Apr)
• WED: Japanese Activity Data (Mar), Chinese Official PMI (Apr), Australian CPI (Mar), Chinese Caixin Manufacturing PMI Final (Apr), German Retail Sales and Import Prices (Mar), French Prelim CPI (Apr), Swiss KOF Indicator (Mar), German Flash GDP (Q1) and CPI (Apr), EZ Prelim GDP (Q1), US ADP (Apr), US GDP and...

• China is said to consider exempting some US goods from tariffs as costs increase with Chinese authorities considering removing additional levies for medical equipment and some industrial chemicals like ethane, according to Bloomberg citing sources familiar with the matter.
• China's Foreign Ministry says it is not having any consultations or negotiations with the US on tariffs; on tariff exemptions, says not familiar with specifics.
• European bourses edge higher on...

• China is said to consider exempting some US goods from tariffs as costs increase with Chinese authorities considering removing additional levies for medical equipment and some industrial chemicals like ethane, according to Bloomberg citing sources familiar with the matter.
• US President Trump said either countries negotiate a deal or they will set a deal and some will be tariffed, at some point, while they will set prices for deals.
• US President Trump reiterated that...

• US President Trump said it depends on China how soon tariffs can come down and they have spoken to 90 countries regarding tariffs already.
• US President Trump said if they don't have a deal, they will set tariffs and could set the tariff for China over the next two or three weeks, while he suggested that there is daily direct contact between US and China.
• European bourses are in the red amid the negative risk-tone; US futures also edge lower ahead of Alphabet...

• US President Trump said it depends on China how soon tariffs can come down and they have spoken to 90 countries regarding tariffs already.
• US President Trump said if they don't have a deal, they will set tariffs and could set the tariff for China over the next two or three weeks, while he suggested that there is daily direct contact between US and China.
• White House Economic Advisor Hassett said the USTR has 14 meetings scheduled this week with foreign trade...

• US President Trump said the Fed should lower interest rates and would like the Fed chair to be early or on time, adds no intention of firing the Fed chair and wants Powell to be more active on rates.
• European bourses move higher as US Treasury Secretary Bessent and the latest Trump comments on Powell boost sentiment; TSLA +6.3% in pre-market trade after Musk signals stepping back from DOGE following dismal earnings.
• USD mixed vs. peers with Antipodeans leading given...

• US Treasury Secretary Bessent told a closed-door investor summit that the tariff standoff with China is unsustainable and expects the situation to de-escalate.
• US President Trump said the Fed should lower interest rates; has no intention of firing the Fed chair and wants Powell to be more active on rates.
• APAC stocks rallied amid tailwinds from the US owing to trade deal hopes and after US President Trump softened his rhetoric on Fed Chair...

• European bourses modestly lower; US futures attempt to pare back Monday’s hefty losses.
• DXY flat, USD/JPY fails to sustain a move below 140, EUR/USD back on a 1.14 handle as USD bounces off lows.
• Modest UST & Bund divergence while Gilts lag and hit lows on BoE's Greene, who highlighted that wage growth remains "pretty high".
• Spot gold briefly tested USD 3,500/oz before waning; industrial commodities mostly...

• APAC stocks traded mixed with most indices rangebound despite the sell-off on Wall St after President Trump renewed his criticism against Fed Chair Powell.
• European equity futures indicate a lower cash market open with Euro Stoxx 50 future down 0.5%.
• DXY has extended on recent downside with JPY the main beneficiary, EUR/USD is above the 1.15 mark.
• Bunds are rangebound on return from the long weekend, crude futures have continued the mild...

• SUN: Easter Sunday, PBoC LPR Setting
• MON: Easter Monday
• TUE: Canadian Producer Prices (Mar), US Richmond Fed (Apr)
• WED: EZ/UK/US Flash PMIs (Apr)
• THU: German Ifo Survey (Apr), US Durable Goods (Mar)
• FRI: PBoC MLF, Japanese Tokyo CPI (Apr), UK Retail Sales (Mar), US UoM Final (Apr)

PBOC LPR (SUN): There are currently no expectations as to what the PBoC may...