Will spring finally arrive for the euro area?

Danske Research Team Danske Bank A/S

Market movers ahead

In the euro area a range of sentiment indicators for April are released, but markets will particularly keep a close eye on developments in PMI manufacturing.
After the first estimate of US GDP growth in Q1, we will also get a glimpse of how the economy started into Q2 with the Markit PMIs for April.
The focus in China continues to be on the trade talks with the US which go on 'around the clock'.
In Japan export figures will get some attention after the past months' weakness, while the focus during the Bank of Japan's policy meeting will be on the updated inflation projections.
In Sweden, we expect the Riksbank to keep the repo rate path unchanged in April.

Weekly wrap-up

US and China are edging closer to a trade deal after reaching consensus on an enforcement mechanism.

EU leaders decided to grant the UK a second Brexit extension to 31 October 2019.

The ECB's policy message was again on the dovish side in April, leaving the door open for further policy easing.

The hunt for carry continues in fixed income markets, while EUR/USD shrugged off the ECB's dovish message. Oil prices ground higher amid heightened supply risks.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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