Risk appetite surged as optimism over earnings more than overs | kamal

Risk appetite surged as optimism over earnings more than overshadowed concerns over the -1.4% print on Q1 GDP. Stock markets are supported, with hopes of support measures in China helping underpin sentiment, after China vowed to underpin the health of so-called platform firms. EZ bonds paring some of yesterday's losses and yields coming down as the unexpected stagnation in French GDP at the start of the year highlighted there are still reasons for the ECB to remain cautious even as inflation is going through the roof. German import price inflation jumped to 31.2% y/y in March. In FX markets #USD lost some ground, although #USDJPY still held above the 130 mark. EUR & Sterling also found some buyers. #Oil at $106.42 as overall confidence improved and fears over China’s Covid measures eased somewhat. #Gold back above $1900.

Today – German and EZ GDP still to come and EZ inflation data also due. In US session eyes are on PCE and Canadian GDP. Exxon and Chevron earnings on tap.

#HFAnalysis #trading