Financial Markets Daily Report 02 May 2022
On Friday, investors digested key economic data releases in the euro area: GDP growth in Q1 decelerated from 0.3% to 0.2% and inflation ticked up from 7.4% in March to 7.5% in April. Nevertheless, the focus of the inflation figures was on the core index, which rose from 2.9% to 3.5% in a sign that inflation is rising across all the components.
- On Friday, investors digested key economic data releases in the euro area: GDP growth in Q1 decelerated from 0.3% to 0.2% and inflation ticked up from 7.4% in March to 7.5% in April. Nevertheless, the focus of the inflation figures was on the core index, which rose from 2.9% to 3.5% in a sign that inflation is rising across all the components.
- In this context, stock indices rose modestly in the euro area but declined in the US, where technology companies, once benefited from the pandemic, led the declines.
- In fixed-income markets, yields on sovereign bonds continued to increase on expectation of tighter monetary policy from the Fed and the ECB. During the weekend, Luis De Guindos said that a rate hike in July is possible but not likely.
- This week the focus will be on the European Commission confidence indicators for the euro area (today), final PMI figures of April, the Federal Reserve meeting (Wednesday) and the US April labor market report (Friday).