SocGen

Futures Flat, Market Anxiety Eased By European Bank Rescue

European and Asian stocks, as well as S&P futures were little changed ahead of "Super Thursday's" events which include the U.K. general election, Comey's testimony and the ECB policy decision. That however may change following a Bloomberg news report that the ECB is set to cut inflation forecasts through 2019 due to weaker energy prices, suggesting the "hawkish" ECB announcement some had expected tomorrow has been postponed.

Here Are The Seven "Black Swans" SocGen Believes Could Shock Global Markets

"policy is the main potential source of both upside and downside risk, be it with respect to fiscal expansion, trade policies, wage outcomes, euro area reform or monetary policy. As China tightens policy, what happens next in the US has become critical, we look for modest US tax cuts but believe that, Trumpflation insufficient to offset fading Xiflation." - SocGen

"If You Blinked, You Missed The Euro Correction"

"The euro zone has survived the worst that could be thrown at it and the narrative of the currency union breaking up is stale. Euro implied volatility has slumped as a result – it’s now perceived to be the third-most stable G10 currency, after CAD and CHF, versus the dollar based on such metrics. The euro can be a haven currency again."

Greek, Italian Risks Weigh On European, Global Markets; Oil, Gold Slide

Tuesday's session started off on the back foot, with the Euro first sliding on Draghi's dovish comments before Europarliament on Monday coupled with a Bild report late on Monday according to which Greece was prepared to forego its next debt payment if not relief is offered by creditors, pushing European stocks lower as much as -0.6%. However the initial weakness reversed after Greece denied the Bild report. S&P futures are fractionally lower

"Sell In May"... And Buy Bonds?

SocGen's cross-asset strategist Andrew Lapthrone has found a curious seasonally-driven pair trade which may be suitable for the next four months: sell stocks and buy bonds, as "June to September are among the weakest months for equities but the strongest for bonds."

SocGen: Beware The Ghost Of 1993

"The comparison with 1993 is worthwhile too - it ended badly for asset markets, after all. Whether the Fed should worry about over-frequent excursions to the zero lower bound, or focus on financial sector stability, the risk is plain – super-easy monetary policy is creating artificially low volatility and driving money into trades and investments that are mispriced as a result."