Daily Summary: regional activity weakening in the US

Macro

• Wall Street major indexes decline after weak regional activity reported by the FED Dallas and FED Chicago, which means that the US economy is close to recession. Currently, investors estimate over 91% probability of a 25 bp interest rate hike at the next FED meeting.

• German IFO indices for April were released this morning at 9:00 am BST. Data came in slightly better than expected. Headline business climate index moved from 93.3 to 93.6 (exp. 93.4).

• The dollar may continue to decline as investors underestimate the likelihood of future rate cuts.

Central Banks

• ECB's Villeroy said that there is still no clear and convergent signs of a change in underlying inflation.

• ECB's Schnabel said that ECB rate hike of 50 bp next week is not ruled out.

Companies

• Credit Suisse (CSGN.CH) had $69 billion of outflows last quarter and lost more than 200 billion francs ($225 billion) of customer deposits over a six-month period before the UBS rescue. It also canceled a plan to resurrect the First Boston brand under Michael Klein.

• Coca-Cola (KO.US) exceeded revenue expectations and maintained its full-year outlook. Company reported a comparable earnings per share (EPS) of $0.68 versus guidance of $0.65, revenue of $10.96bn vs. forecast of $10.8bn, net profit of $3.11bn vs. last year's $2.78bn

• LVMH (MC.FR) became the first European company to surpass a half-trillion dollar market cap.

• Bed Bath & Beyond (BBBY.US) filed for Chapter 11 bankruptcy, with plans to shut all stores and liquidate inventory by June 30. Company had $4.4 billion in assets and $5.2 billion in debt as of late November.

• Tesla (TSLA.US) increased its full-year capex forecast to between $7 billion and $9 billion.

• P&G (PG.US) plans to raise €1 billion in new euro debt following a strong sales outlook.

Crypto

• Bearish sentiment on the crypto market extends as BTC and ETH are consolidating at lows.

• Spot volume on Coinbase (COIN.US) surprisingly fell 0.5% in Q1 2023. This raises uncertainty about the remaining metrics and Q1 2023 financial results, which the exchange will show on May 4.

EURUSD has once again moved above the resistance zone at 1.10 USD. If this break is sustained, a continuation of the upward movement towards the next resistance level at 1.1273 is not excluded. Source: xStation5.