Developed macro
1. Risk aversion remains elevated as equity markets slide in US and Europe
2. US: New home sales to edge up
3. The German IFO is expected to decline in May but current economic conditions should remain positively oriented
4. Norwegian mainland GDP growth to accelerate in Q1
Interest rate strategy
1. Psychological German yield levels to test strength of risk aversion
2. Credit ratings agencies move keeps widening pressure on sovereign spreads
3. Spanish T-bill auctions to test investor appetite
FX strategy
1. USD comeback continues even as US bond yields stay low
2. EUR at risk of testing its 100-day moving average around 1.3972
3. JPY loses ground but losses likely to be capped around USD/JPY 82.74
4. GBP vulnerable to a drop below 1.6000
Emerging markets
1. Contagion from Europe weighs on EM assets.
2. Currencies may stabilize in Asian time zone, rates may consolidate, but headline risks skewed to the downside.
3. Europe: rates likely to go higher; Turkish data expected on weak side.
Commodity markets
1. Eurozone debt crisis in focus prompting safe haven bid for gold.
2. Copper market constrained by falling global mine output.
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