The Cost of Mispricing the Markets and Contagion Risks

Published on 24 April 2023

The show recaps last week’s events and offers an outlook on trading activity and potential liquidity issues across North America and EMEA for the week ahead.

North America

  • Equities volumes are low, and bid-ask spreads are wide. Bond volumes are up and spreads are tight.
  • Earnings results are expected for First Republic Bank, UBS, Microsoft, Alphabet, Visa, and Meta.
  • Data expected: House Price Index, GDP Growth, Personal Income, and Crude Oil Production.
  • US Axe data, within normal ranges, indicates a higher proportion of Selling Vs Buying.

Europe and UK

  • Equities volumes saw significant spikes, and bid-asks are wide. Bonds volumes are low and spreads are tight.
  • Earnings results e.g. Deutsche Bank, Barclays, and Hyundai
  • Data expected: UK CBI Industrial trends on Tues and GDP Growth and Price Index on Fri
  • EU axe data, which is within normal ranges, see a strong proportion of EU dealer asks Vs bids.
  • GBP axe data, within normal ranges, suggests higher net buying versus selling of credit.