Today's news headlines:

‘EU weighs cap on price paid for Russian oil as way to hit Kremlin revenues’. The European Union is exploring alternative methods to reduce energy costs in the bloc, which could involve imposing tariffs on Russian energy imports. The idea has gained some backing from countries like Italy, but Germany is more supportive of the phase-out of Russian energy; the country is expected to be independent of Russian oil by the end of the year. (Financial Times)

‘Chinese stocks notch steepest monthly loss in 6 years as lockdowns hit growth’. Chinese stocks are on track for their deepest sell-off in six years as the true damage of China’s zero-Covid policy begins to be felt. There was a moderate relief rally overnight, but the short bias remains, according to some investment banks, as investors take profits. Economists have scaled back their Gross Domestic Product growth targets for China in response, with the median estimate standing below 5.0% and Nomura targeting just 3.9% for 2022. (Financial Times)

Today

US markets sank to their lowest levels for six weeks as a slew of corporate earnings misses compounded fears of a slowing global economy. The US Dollar Index has bounced 25 basis points this morning as investors continue to pour into the safe-haven asset. WTI crude oil is trading at $102 per barrel in early trade.

Events

Australia Consumer Price Index q/q (Q1. 2021): 2.1% (est. 1.7%)
German Gfk Consumer Climate: -26.5 (est. -16.1)
UK Confederation of British Industry Realised Sales: 11:00AM
US Pending Home Sales m/m: 3:00PM
US Crude Oil Inventories: 3:30PM
European Central Bank President Christine Lagarde speaks: 5:00PM
Bank of Canada Governor Tiff Macklem speaks: 11:30PM​​​​​​​

Interbank rates:
​​​​​​​
​​​​​​​GBP/USD – 1.2558
GBP/EUR – 1.1845
EUR/USD – 1.0601
USD/CAD – 1.2837

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