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Risk Sentiment Fading Into London Close

EQUITIES
  • Modest slide in risk appetite evident into the London close, with the e-mini S&P hitting the day's lowest levels at 4332.00 while the greenback gains a little momentum in FX space.
  • No key headline, macro driver at this stage, although EU headlines warning of an intensification in the Ukraine crisis likely not helping. Similarly, EU recommendation that firms continue paying for gas in EUR keeps the euroarea on a collision course with Russia's RUB payment demands headed into May, meaning the risk of an energy cut-off remain very much present in the coming weeks.
  • Some modest evidence of programmatic selling in US equities, with the largest sell programme of the day (~1150 names) crossing at 1042ET. Less read-through for fixed income space, although 10y yields have crossed back below the 2.90% mark.

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