Highlights for Today:

  • Euro zone Sentix Investor Confidence index releases at 08:30 CET.
  • China’s ‘Two Sessions’ annual key policy event begins, focusing on the government’s work report at the National People’s Congress (NPC).
  • Leaders of Sweden’s government hold a press conference at 11:00 regarding new fiscal policies.
  • Fed’s Harker speaks at 17:00 CET.

Economic and Market Updates:

Overnight Developments:

  • Japan’s Nikkei stock index surged past 40,000 for the first time, supported by loose monetary policy and a weak Japanese yen.

Weekend and Friday Recap:

  • In the euro area, inflation figures showed core and services inflation remained strong, while headline inflation fell less than expected.
  • Former US President Donald Trump won Republican caucuses in several states, advancing closer to securing the nomination.
  • US stock indices Nasdaq and the S&P 500 closed at record highs on Friday.
  • Israel boycotted ceasefire talks with Hamas in Cairo, and OPEC+ extended output cuts to the second quarter.
  • Global equities were higher on Friday, with the S&P 500 marking 16 out of 18 weeks of gains.
  • European rates remained stable, with the ECB expected to deliver a rate cut in June.
  • Portugal was upgraded to A- by S&P as expected.

Currency Markets:

  • EUR/USD holds within the range of 1.0800-1.0850, while USD/CHF remains range-bound.
  • EUR/JPY is close to 163 after last week’s high, and EUR/CHF trades just below 0.96.
  • EUR/NOK saw a sharp drop on Friday, while EUR/SEK started the week at 11.20.

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