Lars Christensen
Danske Bank A/S
Market movers today
With May Day celebrations around the world there are few macroeconomic numbers on the agenda today.
Most important will be the US ISM numbers for the manufacturing sector. We expect ISM to have inched up to 52.2 in April – slightly more upbeat than the consensus expectations of 52.0 and up from 51.5 in March.
Dovish-leaning John Williams of the San Francisco Fed speaks today.
Selected market news
Worries about US growth are increasing, which sent US stock markets lower in yesterday’s trading. Both Dow Jones and S&P500 were down more than 1%. Nasdaq dropped 1.6% on the day. Asian stocks are also trading lower.
This morning we got a mixed bag of macroeconomic data out of Japan. The Bank of Japan will be relieved that core inflation picked up for the first time in 10 months. Core inflation for March was 2.2% y/y - slightly above the consensus expectation of 2.1% y/y. Other data showed that Japan’s unemployment rate fell to 3.4% in March from 3.5% in February, while household spending dropped 10.6% in March. The Markit/JMMA final Manufacturing Purchasing Managers Index (PMI) dropped to 49.9 in April – down from 50.3 in March.
Chinese PMI came in at 50.1 – a tad above the consensus expectation of 50.
The theme in the global markets increasingly seems to be worries about a combined slowdown in the world’s two largest economies, the US and China, and this is clearly souring the sentiment in global stock markets and has been pushing the USD weaker on the expectation that the Federal Reserve might postpone rate hikes.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.