US data was mixed

The US data was mixed with March industrial production (-0.6% vs est. -0.3%) and the Empire manufacturing survey (-1.19 vs est. 7.17) both slipping more than anticipated, while homebuilder confidence and the Fed's Beige Book offered a more upbeat tone.

Builder confidence posted the best level in three months (56 vs 52 last) and our US strategists note that the important sales expectations sub-component jumped to 64 from 59.

That fits with their view that as the Q1 headwinds unwind, we should see a firm contribution from housing to GDP in Q2.