EU Mid-Market Update: Easter Monday holiday in Europe keeps participation to a minimum
**Notes/Observations**
- Four events that will shape market psychology in the week ahead. Fed chair Yellen's speech to the NY Economic Club, US jobs data on Friday, Euro Zone March CPI and PMI data, and Japan's quarterly Tankan Survey**Notes/Observations*
Overnight news
Asia:
- yen currency weakens on Japanese govt hop to unveil fiscal stimulus and delay a planned increase in sales tax; PM Abe said to plan to unveil package of new spending measures on Tuesday, Mar 29th
- China Feb YTD Industrial Profits registers its first rise after 7 straight declines (Y/Y: +4.8% v-4.7% Dec reading)
- China Beige Book, released over the weekend, also pointed to improving profits in Q1
-Europe:
- Easter Monday holiday keeps European markets closed
Americas:
- Fed's Bullard (Voter): April and June are "live meetings" for Fed to raise rates again
**Economic data**
- None seen
**Fixed Income Issuance:
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
**Equities**
Indices [Stoxx50 closed for holiday; FTSE closed for holiday;, DAX closed for holiday;, CAC-40 closed for holiday;, IBEX-35 closed for holiday;, FTSE MIB closed for holiday; SMI closed for holiday; S&P 500 Futures +0.5%
Market Focal Points/Key Themes: Easter Monday holiday keeps European markets closed
***Equities***
- Energy: Abengoa [ABG.ES] Company confirms standstill request with 75% creditor support. To file chapter 11 for US affiliates
**Speakers**
- Spanish banks to stop counting DTA as capital in 2019 with ECB said to approve rules on DTAs last week
- Japan PM Abe reiterated view that 2md phase of planned sale tax increase to occur unless there is a Lehman-like event (refuted press reports that govt would announce a delay for 2nd round of consumption tax increase in May)
- Japan Fin Min Aso stated that it had no plans to use low rate environment to refinance older JGB bonds
- BOJ Gov Kuroda reiterated that currency intervention is up to the Finance Ministry
- Bank of Korea (BOK) names four new candidates as potential Board members. Koh Seung Beom recommended by Financial Services Commission, Cho Dong-chul recommended by the finance ministry, Shin In-seok recommended by Korea Chamber of Commerce and Lee Il-houng recommended by BOK (**Note: four members expected to leave when their terms end in April)
**Currencies**
- FX markets were listless with European out for Easter Monday holiday.
- JPY currency was weaker for the 7th straight session and above thw 113.50 area (longest streak since Oct). USD/JPY pair was rising on short-covering stemming from increased expectations that PM Abe would unveil fiscal stimulus and delay a planned increase in sales tax
**Fixed Income:
- None seen
**Looking Ahead***
- 06:00 (IL) Israel Feb Unemployment Rate: No est v 5.1% prior
- 06:00 (RO) Romania to sell 3.25% 2021 Bonds
- 07:00 (IN) India announces details of upcoming bond sale (held on Fridays)
- 07:00 (BR) Brazil Mar FGV Construction Costs M/M: 0.6%e v 0.5% prior
- 07:25 (BR) Brazil Central Bank Weekly Economists Survey
- 08:30 (US) Feb Advance Goods Trade Balance: -$62.3Be v -$62.2B prior
- 08:30 (US) Feb Personal Income: 0.1%e v 0.5% prior; Personal Spending: 0.1%e v 0.5% prior; Real Personal Spending: 0.1%e v 0.4% prior
- 08:30 (US) Feb PCE Deflator M/M: -0.1%e v +0.1% prior; Y/Y: 1.0%e v 1.3% prior
- 08:30 (US) Feb PCE Core M/M: 0.2%e v 0.3% prior; Y/Y: 1.8%e v 1.7% prior
- 08:30 (BR) Brazil Feb Total Federal Debt (BRL): No est v 2.750T prior
- 09:00 (IL) Israel Central Bank (BOI) Interest Rate Decision: Expected to leave Base Rate unchanged at 0.10%
- 10:00 (US) Feb Pending Home Sales M/M: +1.1%e v -2.5% prior; Y/Y: -0.4%e v -0.9% prior
- 10:00 (MX) Mexico Feb Trade Balance: +$0.4Be v -$3.4B prior
- 10:30 (US) Mar Dallas Fed Manufacturing Activity: -26.0e v -31.8 prior
- 11:30 (US) Treasury to sell 3-Month and 6-Month Bills
- 13:00 (US) Treasury to sell 2-Year Notes
- 17:00 (KR) South Korea Mar Consumer Confidence: No est v 98 prior
- 18:00 (HU) Hungary Mar Business Confidence: No est v 4.6 prior; Consumer Confidence Index: No est v -20.2 prior
- 19:30 (JP) Japan Feb Jobless Rate: 3.2%e v 3.2% prior; Job-To-Applicant Ratio: 1.29e 1.28 prior
- 19:30 (JP) Japan Feb Overall Household Spending Y/Y: -1.7%e v -3.1% prior
- 19:50 (JP) Japan Feb Retail Sales M/M: -0.9%e v -1.1% prior; Retail Trade Y/Y: +1.5%e v -0.1% prior; Large Retailers' Sales: No est v 0.9% prior
- 19:50 (JP) Japan Feb Department Store Sales: 1.6%e v 1.0% prior
- 23:00 (TH) Thailand to sell combined THB80B in 3-month and 6-month bills
- 23:30 (HK) Hong Kong to sell 3-month, 6-month bills
- 23:30 (TH) Thailand Feb ISIC Manufacturing Production Index Y/Y: -4.0%e v -3.3% prior; Capacity Utilization: No est v 63.9 prior
- (CO) Colombia Feb Retail Confidence: No est v 19.5 prior; Industrial Confidence: No est v 5.3 prior
- (CL) Chile Central Bank (BCCH) Quarterly Report