ECB Rate Decision Coming Today

After the three-day drop in US equities indices, market appreciated on Wednesday – S&P gained 2%, Nasdaq closed 2.7% higher. However, futures are trading slightly lower this morning, losing 0.3%. The yield on 10Y USTs added 2 bps on Wednesday and closed 0.702%.

Asian stocks trading higher this morning after the rebound in US, Kospi and CSI is 0.8% up, Hang Seng trading almost flat.

Today investors are waiting to hear a word from ECB: it is expected that central bank will leave the rate unchanged, however the official comments will be the key. Within last several days some officials were indicating downside risks while others are more confident. The yield on 10Y DBR lost 3 bps and closed at -0.464% while EUR ccy strengthened to 1.1803 vs USD.

Oil prices marked higher on Wednesday alongside with US equities, Brent gained 2.5% to USD 40.79 per barrel while WTI added 3.5% to USD 38.05 per barrel.

RUB strengthened on Wednesday by 1.3% to 75.33 vs USD in line with EM peers. MinFin held two auctions on Wednesday, it sold RUB 158.5 bn worth of OFZs – RFLB FRN 24 and RFLB FRN 30. Russian Eurobonds traded firmer; bonds gained 20-50 bps along the curve.

On SSA front, we saw Ghana, Angol & Ngeria Eurobonds traded half a point higher on average supported by oil rally.