Macro: Equity markets had a mixed day yesterday with the S&P500 +0.96% and the Nasdaq +0.94%, as President Trump signalled de-escalation in the Iran conflict. Europe fell -0.28% before this news emerged Economic releases today include German IFO (88 est.), UK CBI Trends Orders and Selling Prices survey. Then in the US, Philadelphia Fed Non-Manufacturing Activity Index and C/A balance at 13:30, house price data for April from the FHFA and S&P Corelogic CS (-0.1% est.) at 14:00. At 15:00 the Richmond Fed Manufacturing Index (-10 est.), and Conference Board Consumer Confidence index (98 est.) are released. It is a very busy day for the central bankers, with de Guindos, Kazimir, and Lagarde from the ECB; the BOE’s Bailey, Greene, Ramsden, Pill and Breeden; and from the Fed Powell (Semi-annual Monetary Policy Report to Congress), Williams, Kashkari, Collins and Barr, all speaking.

Stock: We have an update on PayPal. (Comment attached)

Debt: Core bond yields declined due to the lowering of geopolitical risk and a weak raft of economic data releases in the US and UK.