Daily Points

Global markets are entering a US long weekend with slightly higher stocks and lower yields. Key focuses include UK/Canadian consumer spending trends and a speech by Fed Governor Waller for policy clues.

Key Takeaways

• 1.Markets are relatively quiet heading into the US Memorial Day long weekend, with global sovereign bond prices higher and the US 10-year yield down 13bps from recent peaks.
• 2.UK and Canadian retail data suggest strong Q1 performance but a likely pullback or uncertainty starting Q2.
• 3.Canadian producer prices (IPPI) show an upward trend, indicating potential pass-through inflation risks for consumer prices (CPI).

Table of Contents

• UK CONSUMERS TAKE A BREATHER
• CANADIAN CONSUMERS LIKELY HAD A SOLID Q1 INTO Q2 UNCERTAINTY
• CANADIAN PRODUCER PRICES TO INFORM LAGGING CONSUMER PASS THROUGH
• FED'S WALLER STANDS OUT ON A QUIET CALENDAR
• HUM DRUM JAPANESE INFLATION

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