Europe Market Open: APAC stocks mostly higher, DXY marginally benefits from US Presidential debate ahead of US PCE

French Election 1st round saw National Rally make significant gains but the odds of another hung parliament have likely increasedSparking outperformance in French-related assets with OATs, CAC 40 & EUR all supported, though the magnitude of this has trimmed into another week of political uncertainty and a still challenging fiscal backdropUS futures generally firmer but with some slight pressure in chip names led by NvidiaEUR the FX outperformer weighing on DXY, USD/JPY holds above 161.00Fixed benchmarks in the red, initial OAT strength has faded with the OAT-Bund spread narrowing on the open to 72bps before re-widening modestly to 75bpsCrude bid across the board, precious metals mixed while base peers track the broad toneLooking ahead, highlights include US Manufacturing Final PMI (June), German Prelim. CPI, US ISM Manufacturing PMI, Comments from ECB’s Lagarde & Fed’s WilliamsRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

France’s far-right won the first round of the French parliamentary election, according to estimates. However, expectations are mixed over whether they will secure a majority. EUR is the best performing currency across the majors and OATS are firmer by circa 16 ticks and CAC 40 future +1.1%, with some citing relief over the potential lack of majority for Le Pen.European equity futures indicate a higher open with Euro Stoxx 50 future +1.4% after the first round of the French parliamentary election, while the cash market closed lower by 0.2% on Friday.APAC stocks began the new quarter somewhat varied as participants digested key data releases.Official Chinese Manufacturing PMI remained in contraction territory, Non-Manufacturing missed estimates, but Caixin Manufacturing PMI topped forecasts to print its highest in three years.Looking ahead, highlights include EZ, UK & US Manufacturing Final PMI (June), German Prelim. CPI, US ISM Manufacturing PMI, Comments from ECB’s Lagarde & Fed’s WilliamsRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Price action in European equities has been choppy, but are ultimately mostly firmer; US futures are modestly firmer ahead of US PCEFrench assets underperform ahead of Sunday’s legislative elections; CAC 40 -0.4%, OATs -31 ticks, OAT-Bund yield spread above 84bpsDollar is flat after initially being boosted by JPY weakness & post-presidential debateBonds are subdued following the Presidential debate which saw the odds of a Trump victory inch higherCrude is firmer and towards session highs, XAU is flat whilst base metals gainLooking ahead, US PCE, Canadian GDP, Comments from Fed’s Barkin & BowmanRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

67% of respondents said Trump won the Presidential debate; 81% of registered voters who watched said it had no effect on their choice, 5% said it made them change their mind, via CNN.APAC stocks mostly higher heading into month-, quarter-, & half-end and following the positive US handover as attention turns to PCE.DXY strengthened as the betting odds of a Trump second term got boosted marginally, support also from USD/JPY eclipsing 161.00Fixed income slips with yields climbing and the US yield curve steepening into PCECrude extended on Thursday's gains with base metals benefitting on the risk tone while XAU eased marginallyLooking ahead, highlights include UK Final Q1 GDP, German Import Prices, Retail Sales & Unemployment Rate, French, Spain & Italian CPI, US PCE, Canadian GDP, Comments from Fed’s Barkin & Bowman.Click for the Newsquawk Week Ahead.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

European bourses are mixed whilst US futures are modestly in the red; Micron -5.5% after its resultsDollar is slightly softer, Antipodeans outperform & USD/JPY holds around 160.50Bonds are modestly softer in a continuation of the prior day’s lossesCrude & XAU benefit from the softer Dollar, whilst base metals remain subduedLooking ahead, US IJC, Durable Goods, GDP & PCE Q1 (Final), Banxico Policy Announcements, Biden-Trump debate, Comments from ECB's Elderson, Supply from the US, Earnings from Nike & WBARead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks were negative amid this week's choppy tech performance with headwinds from higher yields.Fed Bank Stress Tests showed all banks passed, which paves the way for higher payouts.European equity futures indicate a lower open with Euro Stoxx 50 future -0.2% after the cash market closed lower by 0.4% on Wednesday.DXY pulled back below the 106 mark, USD/JPY remains above 160 and EUR/USD is stuck on a 1.06 handle.Looking ahead, highlights include EZ Consumer Confidence (Final), US IJC, Durable Goods, GDP & PCE Q1 (Final), Riksbank & Banxico Policy Announcements, Biden-Trump debate, Comments from RBA's Hauser & ECB's Elderson, Supply from Italy & US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

European bourses higher across the board following the tech-led upside on Wall St, sectors mostly in the green though Autos lag on VolkswagenUS futures firmer but only modestly so, awaiting Micron earnings after-hours; FedEx and Rivian bid in the pre-marketUSD/JPY breached 160.00; bringing the April 29th peak into view, a session which saw intervention and a large pullback in the pairDXY robust to the detriment of peers, Aussie outperforms after hot CPI which has raised the odds of a August hikeFixed softer given the tone and awaiting supply; Commodities initially contained though crude has extended in recent tradeLooking ahead, highlights include Fed Bank Stress Test, Comments from ECB’s Rehn, Panetta & Lane, Supply from the US, Earnings from Micron, Paychex & General MillsRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks followed suit to the mixed performance stateside where tech rebounded as Nvidia snapped its losing streak.European equity futures indicate a firmer open with Euro Stoxx 50 future +0.5% after the cash market closed lower by 0.2% on Tuesday.DXY is caged in a tight range on a 105 handle, AUD boosted post-CPI, EUR/USD sits just above the 1.07 level.Australian monthly CPI data saw markets price around a 33% probability for an RBA hike at the August meeting vs around 12% pre-release.Looking ahead, highlights include German Gfk Consumer Sentiment, Fed Bank Stress Test, Comments from ECB’s Rehn, Panetta & Lane, Supply from UK & USRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

European bourses are hit following updates from Airbus and Merck; US futures mixed, with the NQ leading as NVDA (+2.2%) finds its footingDollar is flat, with G10 price action also lacklustre in catalyst-thin tradeBonds are contained awaiting impetus from US data and a 2yr auctionCrude is modestly softer benefiting from Dollar price action, base metals are generally higherLooking ahead, US Philly Fed Nonmanufacturing Business Outlook Survey, US Richmond Fed Index, Canadian CPI, Comments from Fed’s Cook & Bowman, Supply from the US, Earnings from CarnivalRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks were mostly positive but with some of the gains capped following the tech underperformance on Wall Street.Nvidia (-6.5%) suffered a third consecutive day of losses and was down 13% from its peak last week.European equity futures indicate a weaker open with Euro Stoxx 50 future -0.3% after the cash market closed higher by 0.9% on Monday.DXY is lacklustre with FX markets broadly contained, USD/JPY remains sub-160.Looking ahead, highlights include US Philly Fed Non-manufacturing Business Outlook Survey, US Richmond Fed Index, Canadian CPI, Comments from Fed’s Cook & Bowman, Supply from UK, Italy, Germany & US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk