latest US Jobless Claims and the Philadelphia Fed Manufacturing Index.

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1 A Eurex publication focused on European financial markets, produced by MNl Morning Briefing April 20th 2017 Thursday throws up a busy calendar, as central bank heads and finance ministers head to Washington for the start of the IMF/World Bank spring meetings. The European data calendar gets underway at 0600GMT, with the publication of the German producer prices. At 0900GMT, the EMU construction production numbers will cross the wires. At 1200GMT, Federal Reserve Governor Jerome Powell and European Commission Vice President Valdis Dombrovskis participate in a Q&A discussing "Capital Markets, Growth & the Economy of Tomorrow" at the Global Finance Forum in Washington, D.C. The US data calendar kicks off at 1230GMT, with the publication of the latest US Jobless Claims and the Philadelphia Fed Manufacturing Index. The level of initial jobless claims is expected to rise by 8,000 to 242,000 in the April 15 week after a 1,000 decrease in the previous week. The four-week moving average, which fell by 3,000 in the April 8 week, would fall by 6,500 to 241k in the coming week as a 259,000 level in the March 18 week drops out of the calculation, assuming the MNI forecast is correct and there are no revisions. The Philadelphia Fed manufacturing index is expected to fall to a reading of 25.0 in April from 32.8 in March. At 1400GMT, the US leading indicators will be released, at the same time as the European Commission consumer confidence indicator. The latest DOE Natural Gas Stocks data will b published at 1430GMT. BOE Governor Mark Carney speaks in Washington at 1500GMT, whilst Bundesbank Board member Andreas Dombret speaks at Columbia university, in New York. At 1715GMT, US Treasury Secretary Steven Mnuchin will speak at the Institute of International Finance Policy Summit in a moderated conversation in Washington. National Economic Council Director Gary Cohn will speak at 1830GMT and Office of Management and Budget Director Mick Mulvaney will speak at 2030GMT. Late US data will see the publication of the Fed Weekly Money Supply Data at 2030GMT.. Global Economic Trading Calendar

2 Markets SNAPSHOT: Below gives key levels of markets in the second half of the Asia-Pac session: Nikkei 225 up 46 points at 18, ASX 200 up 8.3 points at 5, Shanghai Comp. down 6.5 points at 3, JGB 10- Year future down 3 ticks at , JGB 10-Year yield up 0.1bp at 0.008% - Aussie 3-Yr future down 2 ticks at 98.21, 3-Year yield up 2.2bp at 1.765% - Aussie 10-Yr future down 4 ticks at 97.48, 10-Year yield up 4.3bp at 2.499% US TSY/RECAP: Treasuries ended Wed lower in 2way trade, ebb since 2am ET after Tues FTQ gain. Fed Beige Bk came and went with little fanfare: districts split with modest/moderate growth; labor mkts "tight". Tsys pressured as core EGBS weak esp. German 2Y Schatz, hawkish ECB comments, EGB longs stopped out. Bunds weak. Italian debt firmed. ECB Hansson said not too early for ECB policy discussion. - Tsys bank portfolio selling after UK May won general election motion in Parliamt. Real$ selling in Tsy 10Y, 30Y. Boston Fed Rosengren: could begin shrink bal sheet "soon", alongside rate hikes- T-Notes open Asia at , 10-Year yield at 2.214%. JAPAN DATA: Capital flows for the week to April 15, according to data from the Ministry of Finance: Japanese investors: - Sold net Y231.7 bln in foreign equities - Sold net Y796.2 bln in foreign bonds - Bought net Y21.9 bln in foreign money market instruments - Resulting in a net sale of Y trln Foreign investors: - Bought net Y315.2 bln in Japanese equities - Bought net Y410.5 bln in Japanese bonds - Sold net Y631.9 bln in Japanese money market instruments - Resulting in a net purchase of Y93.8 bln US EURODLR FUTURES: Mildly lower across the strip, sitting at session lows from yesterday. Saw a decent sized 3.4k given at in EDM7 at 0250BST. Current White pack (Jun'17-Mar'18): * Jun' at * Sep' at * Dec' at * Mar' at * Red pack (Jun'18-Mar'19) to JAPAN STOCKS: Japanese stocks head into the lunch break around 65 points higher at 18,495. Stocks have managed to shake off a negative lead from the US where the Dow Jones fell 118 points. - Strong trade data is helping support Japanese indices, the bumper numbers saw a wider surplus than expected, while exports rose 12% in March (fastest pace in 2 years) and imports rose 15.8%. Other data also showed strong flows into stocks from both foreign and domestic investors in the week to Apr 14The Nikkei 225 has 6/10 sectors in the green, financial lead the way, up around 1.14%, with yields higher from the 3- Year sector upwards OIL: Oil is slightly higher in Asia-Pac trade, clawing back some of yesterday's slump, but still well off highs from yesterday. - WTI last trades up $0.33 at $50.77, down from highs of $52.66 yesterday. - Oil dropped like a stone yesterday, posting the biggest decline since the start of March, after EIA data showed US crude production hit the highest levels since August This outweighed US DOE inventories showed a decline in line with estimates in headline crude inventories. GOLD: Gold is down slightly in Asia- Pac trade, moving in tandem with risk on sentiment as stocks rise and bonds fall. Strong trade data from Japan has painted a robust picture for the global economy and risk sentiment is also getting a boost from positive sentiment from Fed Vice Chair Fischer speech. - Gold last trades down $1.23 at $1, Concerns over global risks have eased which is supporting DXY and hurting the yellow metal. FOREX: In the absence of any significant data, the dollar was largely side-lined during the Asia- Pacific session, with currency pairs held to tight ranges. Dollar-yen started the day at Y and managed to carve out a Y to Y range. Upbeat data from Japan failed to inspire any enthusiasm to trade, the pair seemingly held hostage to a rather large option expiry for today at Y ($2.03bn). Aussie-dollar idled in a $ to $ range. Kiwi dollar was a modest outlier, the flightless bird jumped higher from $ to $ following higher than expected NZ Q1 CPI data. Meanwhile, euro-dollar was last at $ and Cable at $1.2784, after trading in respective ranges of $ to $ and $ to $

3 Technical Analysis BUND: (M17) Focus Returns To Support Layers *RES 4: Daily Bull channel top *RES 3: High Apr 18 *RES 2: Hourly support Apr 18 now resistance *RES 1: Hourly resistance Apr 19 *PREVIOUS CLOSE: *SUP 1: Low Apr 12 *SUP 2: Hourly support Apr 10 *SUP 3: Daily Bull channel base *SUP 4: Low Apr 7 *COMMENTARY: Cracks are appearing in the bull trend with daily studies looking to correct from O/B and momentum divergence now weighing. The break of eases bullish pressure and shifts focus to layers of support where key DMAs and the bull channel base are situated. Layers of resistance are starting to accumulate which is a concern for bulls who now need a close above to reconfirm a bullish bias. EUROSTOXX50: Resistance Region Key *RES 4: Hourly resistance Apr 12 *RES 3: High Apr 13 *RES 2: Hourly support Apr 18 now resistance *RES 1: High Apr 19 *PREVIOUS CLOSE: *SUP 1: Low Apr 19 *SUP 2: Low Mar 14 *SUP 3: DMA *SUP 4: Low Mar 3 *COMMENTARY: Cracks in the bull trend last week have resulted in closes below the daily bull channel base with immediate focus now on where the 55-DMA is located. Bears need a close below to shift focus to the 100-DMA ( ). Layers of resistance remain with bulls needing a close above to ease bearish pressure and above to shift focus back to 2017 highs.

4 Eurex Futures Market Close

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