CREDIT SUPPLY: DAMAC: New Issue priced 7%

• Equities are spiking higher following the report from WSJ that Trump won't impose tariffs Yet.
• European Equities continue to perform well in 2025, SX5E makes a fresh 20yrs high, and next resistance will be seen at 5200.00.
• The Bank index (SX7E) has broken above 158.00, some of the best levels seen since 2015, but ain resistance in the Index is at 163.34, the 2014 high.

Modest bid in core global FI on the back of a WSJ piece suggesting that "President-elect Donald Trump is planning to issue a broad memorandum Monday that directs federal agencies to study trade policies and evaluate U.S. trade relationships with China and America’s continental neighbors—but stops short of imposing new tariffs on his first day in office, as many trading partners feared."

• The reaction presumably comes as the delay to any fresh U.S. tariffs presents less inflationary risk for markets.
• The bid in equities and weakness in the USD is more prominent from a cross-market perspective.

• USDCAD initially slumped 140 pips on that WSJ story re no new tariffs yet.
• Hitting a low of 1.4323 (latest 1.4370 in fast trading), it pierced support at 1.4364 (20-day EMA) and stopped short of 1.4302 (Jan 15 low).
• CAD still lags some high beta peers on the day though, gaining 0.9% to the USD on the day vs 1.2% for NZD and SEK.