CREDIT OPEN: Pipeline currently thin as slower week draws toward a close
EU stocks are set for a firmer start as markets look to recover from hefty losses seen on Thursday.
Helping the cause is the stronger Wall Street handover where S&P500 (0.23%) notched up a fourth straight record close and US yields fell after rising jobless claims and an unexpected monthly drop in PPI further revived rate cut hopes.
Asian markets are mixed though where attention has been on the BoJ which kept rates on hold and left bond purchases unchanged for the time being, but will look to reduce them at some point in the future. That saw JGBs jump with the 10-year yield dropping to a multi-week low before retracing part of that move. Governor Ueda speaks at around 07:30 BST.
Looking ahead and today's EU data won't be market moving while US data comprises US May Import Price Index and prelim Jun Uni of Michigan Sentiment.
Speakers could have a bigger impact where the lineup consists of ECB's Vasle, Lane, Schnabel & Lagarde along with Fed's Mester & Goolsbee. Also on tap is the BoE's Inflation Attitudes Survey.
There's no auction supply but rates markets will remain in the spotlight after another day of significant moves on Thursday which saw the 10yr German yield fall 6bps while the 10yr French equivalent actually ended the day 2.6bps higher. Political concerns remain elevated after left of centre French parties agreed to an alliance to fight Macron.
For more on latest developments see the European Breakfast Briefing
Friday's supply prospects
Ahead of today's session, just a couple of names remain in the immediate pipeline but whatever happens, the week is set to be the slowest since early May. Non-covered FIG issuers have been conspicuously absent this week where just one issuer has raised EUR500m
** SFIL EUR Sep 2029 Green
** PSP Capital Inc EUR offering
Stateside, this week's USD5.75bn total (less than half of the lowest weekly estimate of USD12.5bn), not only makes this the slowest ex-SSA issuance week of the year, but the slowest issuance week (December excluded) since Thanksgiving Week of last year. The fact that there is a market holiday in the middle of next week won't help the cause either. For more colour see IGM's THE ENDGAME.
What to watch today
** Key Data: FR May F CPI (07:45), EC May Trade Balance (10:00), US May Import Price Index (13:30) and US Jun P Uni of Michigan Sentiment (15:00)
** Key Events: ECB's Vasle (08:35), Lane (10:00) and Lagarde (18:30) speak along with Fed's Goolsbee (19:00). BoE's Inflation Attitudes Survey (09:30)
** Auctions: No major term auctions scheduled for Friday 14th June
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