Global Update
- The past week provided mixed signals. The US retail sales report was the major disappointment as it declined for the second month in a row despite positive signals from weekly sales. The disappointment led to losses in equity markets and lower bond yields.
- Chinese investment growth rose further to the strongest level in five years reinforcing the impression that the Chinese economy is turning strongly at the moment.
- Euroland GDP fell more than expected in Q1 with Germany as the weak spot. A likely sharp reduction in inventories provides a better base for production growth going forward, though. The UK received more positive news on housing and retail sales.
- Exports in Denmark have continued their rapid decline in March. In Sweden the latest indicators point to a very sharp contraction in Q1 GDP and capacity utilisation has fallen substantially.
Market movers ahead
- US housing data take centre stage in the coming week with the release of NAHB housing index and housing starts. Regional PMI indices will give more input to judge have fast ISM is recovering
- In Euroland Flash PMI and German ZEW are main events. We look for further improvements in both.
- Very quiet week in Scandi. Only mover is Norwegian GDP where we expect a lower decline than Norges Bank.
