Global Update
- US data were a mixed bag over the past week. While regional business surveys and consumer confidence improved further, the housing data were mixed.
- German IFO data disappointed on the surface, but the forward-looking expectations index improved for the fifth month in a row.
- Asia continues to impress. This time Japanese industrial production and exports rose further and production plans point to a marked recovery of production during Q2 and Q3.
- Swedish GDP fell markedly in Q1, although not as much as feared.
- Bond markets took centre stage as downgrade fears and stronger data led to further increases in bond yields. This dented the positive impact on the equity markets from stronger growth signals.
Market movers ahead
- A big week in US is coming up with both ISM and non-farm payrolls. We look for further positive surprises in ISM while payrolls is likely to show a further big decline.
- In Europe focus turns to the ECB meeting. Rates are expected to be unchanged, but ECB will likely announce details on how the non-standard measures will be implemented
- In Denmark numbers for the currency reserve should show a further increase and we expect Danmarks Nationalbank to narrow the spread to Euroland by a further 10bp.
