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CREDIT OPEN: Fast pace set to continue

EU stocks look set for opening gains with help from an after-hours pop higher in US index futures after Nvidia reported that Q1 revenue surged by 262% YoY to USD26bn and issued an upbeat outlook.

Ahead of that, cash S&P500 (-0.27%) and Nasdaq (-0.18%) had closed lower and DXY rallied after FOMC minutes of the May meeting showed that officials were open to further rate rises to quell inflation. That said, markets remain at lofty levels in an absolute sense where Nasdaq had touched a record high earlier in the day.

Turning attention to today and the European data schedule will be headlined by flash PMIs for May with both services and manufacturing readings expected to improve at the pan-eurozone level, albeit with manufacturing staying firmly in contraction. The ECB will release negotiated wage data for Q1 and comes after Germany's BUBA (via its monthly report) said on Wednesday that negotiated pay increased by 6.2% in Q1.

Stateside releases also comprise weekly jobless claims & new home sales for April while speakers consist of ECB's Villeroy, BOE Chief Economist Pill and Fed's Bostic.

The EGB complex gets a break from auction supply while US conducts a 10y TIPs sale.

For more on latest developments see the European Breakfast Briefing.

Thursday's supply prospects

European bond issuance is set to continue at a strong pace on Thursday with a host on names still sat in the pipeline, predominantly from the corporate and FIG sectors. That after a bumper session Wednesday which was the busiest day ever in terms of number of euro tranches as 30 priced - beating the previous record of 29 set just last Tuesday. The volume total came in at EUR28.325bn, enough to make it the fifth biggest day in terms of single currency supply this year. Spearheading issuance were sovereigns Austria (EUR4bn), France (EUR4bn) and Portugal (EUR3bn), as well as Swisscom which raised EUR4bn via the first euro IG corporate five-part transaction of 2024. See here for a full recap of Wednesday's session.

** Schleswig-Holstein EUR 10yr LSA

** Manitoba USD 10yr Global at SOFR m/s +81 area IPTs

** Hochtief EUR 6yr

** EPH EUR500m 5.5yr green debut

** Koninklijke Philips EUR 8yr

** Pandora EUR500m n/g 6yr SLB

** Mondi EUR500m n/g 8yr

** Alstrom debut PNC5.25 hybrid debut

** Aareal Bank EUR500m n/g 2yr green inaugural senior non-preferred

** Grenke EUR300-500m long 5yr senior

** illimity Bank EUR300m 3yr senior preferred

** Sydbank EUR500m n/g 3N green senior non-preferred

** SpareBank 1 Ostlandet EUR500m n/g 5yr green senior preferred

** Sparkasse Hannover EUR500m n/g 7 or 10yr covered

** Eramet EUR400m 5.5yr SLB

US high-grade corporate borrowers took advantage of calm conditions in the morning, pushing seven more deals across the finish line prior to the release of the Fed minutes. That added USD4.075bn to this week's total, enough to bring issuance to USD28.175bn for the week, thereby topping the average weekly estimate (USD25bn), the fifteenth time this year that weekly issuance has exceeded expectations. For a closer look at Wednesday's primary session in the US see THE ENDGAME.

What to watch today

** Key Data: FR May P HCOB Composite/Manufacturing/Services PMIs (08:15), GE May P HCOB Composite/Manufacturing/Services PMIs (08:30), EC May P HCOB Composite/Manufacturing/Services PMIs (09:00), UK May P S&P Global Composite/Manufacturing/Services PMIs (09:30), US Weekly Continuing/Initial Jobless Claims (13:30), US May P S&P Global Composite/Manufacturing/Services PMIs (14.45), EC May P Consumer Confidence (15:00), US Apr New Home Sales (15:00) and US May Kansas City Fed Manufacturing Activity (16:00)

** Key Events: BoE's Pill (12:30), ECB's Villeroy (14:45) and Fed's Bostic (20:00) all speak. ECB publishes Q1 Negotiated Wage Data (10:00)

** Auctions: US to sell USD16bn 10yr TIPS (18:00)

** Earnings: 10 Stoxx6005 S&P500 companies report

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