CEEMEA OPEN: A quiet week comes to an end
- The Dollar Index is steady from where we last left it, although down from an o/n high to 104.268 this morning, ahead of the main release today in NY that takes shape in the form of US PCE Inflation.
- The headline PCE is widely expected to continue easing further to 2.4% y/y in June from 2.6% prior, a low not seen since Feb '21. In brief, the report should offer encouraging news to the Fed, opening the doors to a rate cut in the September meeting.
- Looking at the markets, the S&P ended 0.5% softer at a 6wk+ low (-4.75% since the 16th Jul) while the related futures have added 0.45% overnight.
- Asian indices are narrowly mixed in late activity.
- Front month Brent futures have advanced to three day high.
- Sep24 Bunds saw an o/night base of 132.35 compared to Thur's 5wk high at 132.92 with a trading range of just 14 ticks.
Fresh in the CEEMEA Pipeline
- No new additions to the pipeline
On the Radar
- There are no deals being offered in the market on Friday (July 26) morning.
Priced Deals
- No new priced deals.
What to watch on Friday
- On the CEEMEA data slate today, the main event (10.30GMT), will be the CBR's policy meeting, where we are expecting the bank to hike its interest rate by 200bps to 18% after inflation accelerated for a sixth straight month in June (8.59% y/y) (preview here).
- In the US, Jun Personal Income (0.4% f/c vs 0.5% prior), Personal Spending (0.3% f/c vs 0.2% last) & PCE metrics (m/m prints seen firmer but vice versa for the y/y outturns). Jun final University of Michigan Sentiment releases are anticipated to be unch.
- There are no central bank speakers scheduled to talk today.
Wider market Sentiment
- USD Index at 104.300
- UST 2yr/10yr at 4.431%/4.241%
- Bund 2yr/10yr at 2.624/2.414%
- Brent at $82.42/brl
Updated at 06:00GMT
For all the latest developments in Asia and LatAm primary market issuance, please see our regional reports:
- ASIAN MORNING BUZZ: Chinese issuers navigate choppy waters
- [LATAM CLOSE]: Change of Plans
---- Subscribe to read more ----
To receive this analysis plus much more, subscribe to IGM. Request your free demo of the service today.