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Equities Firmer, FX Volumes Supported Through Cash Equity Open

CROSS ASSET
  • Through the European cash equity open, markets are seen opening slightly higher, extending the gains posted yesterday following the soft US CPI. Eurostoxx, CAC-40 and DAX futures seen higher by 0.1-0.2%, while the FTSE-100 underperforms modestly amid broad GBP strength. Solid close for Asia markets helping buoy sentiment: Nikkei 225 and Hang Seng higher by 1.5% and 2.5% respectively.
  • FX futures volumes generally trade well, with most G10 currencies seeing volumes ahead of average for this time of day. JPY and AUD markets clearly the most active overnight, with both markets seeing around 1/3 of their daily average volume already surpassed in early Europe hours.
Figure 1: JPY, AUD futures most active markets overnight

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