What to watch

Core fixed income drifted higher in Asian hours after there was little of immediate market-moving importance in yesterday's FOMC Minutes. This trend has continued this morning.

• Today's data calendar is rather light with Italian confidence data and industrial sales due this morning while the afternoon sees second print of US GDP as well as pending home sales and the Kansas City Fed manufacturing index.
• In the UK there is focus on whether the government will more explicitly outline its cost of living strategy today. There have been many political commentators point out that the government may announce the strategy shortly after the negative headlines of the Gray report and the testimony from the Ofgem head that energy bills are likely to rise around 40-45% in the new price cap increase in October. With parliament in recess from tomorrow until 6 June, today may be the last chance for the government to try and change the topic of conversation ahead of next week's Jubilee long weekend.
• On the political front, there has also been some focus already this morning on a Politico article that suggests an "11th-hour compromise" on the sanctions package could get Hungary on board "before the summit of EU heads of state and government starts on Monday." Headlines on this side will be closely watched.
• In terms of speakers today, most are scheduled for the tail end or after the European session with ECB's Centeno and Fed's Brainard and Daly all due.