EQUITIES: US Megacaps Led Lower by Softer Europe; Profit-Taking Likely Culprit

On today's Finnish bond auction, Nordea think "overall, RFGB Apr30 appears slightly rich on the curve. The other bond up for auction, RFGB Sep34, offers a better risk-adjusted pickup but also seems somewhat expensive relative to its curve neighbours".

• For reference, Finland will hold a conventional auction to sell a combined E1.0-1.5bln of the 5-year 2.50% Apr-30 RFGB (ISIN: FI4000577952) and the 10-year 3.00% Sep-34 RFGB (ISIN: FI4000571104), an announcement which was in-line with our expectations.
• The 2.50% Apr-30 RFGB was last issued on October 15, with a bid-to-cover of 1.68x and the pre-auction midprice below the average price achieved at the auction.
• The 3.00% Sep-34 RFGB meanwhile was last issued on November 19, with a bid-to cover of 2.47x, and the the pre-auction midprice also below the average price achieved at the auction.

• AUD trades well, with AUD/USD making another test on the year's high and first resistance at 0.6373. Moves follow the RBA rate decision overnight, at which the Bank lowered the cash rate to 4.10%. While the easing step was the first in nearly five years, the RBA's language pushed markets away from one-directional bets on policy ahead, warning that an overly aggressive approach to easing could result in disinflation stalling. Technically, the breach of resistance in the pair highlights a stronger reversal and paves the way for gains towards 0.6414, a Fibonacci retracement.
• The AUDNZD cross has advanced 0.58% on the session, close to recent highs of 1.1149. Late 2024 highs represent the most notable level on the topside at 1.1180, a breach of which would place the cross at the highest level since late 2022.
• The single currency trades more mixed, with EUR/GBP recovering just off the fresh February low of 0.8290 posted overnight. Near-term focus shifts to an appearance from ECB's Cipollone - who speaks with MNI on the topic of the ECB balance sheet and monetary policy.
• Canadian inflation data for January takes focus ahead, with CPI expected to pick up slightly in the month, evident in consensus looking for +2.6% for core Trim Y/Y from +2.5% previously. US Empire Manufacturing is also due, as well as appearances from Fed's Daly and Barr.