Financial Markets Daily Report26 April 2021
Investors ended the week in a mixed mood as they weighed increasing coronavirus cases, vaccination progress and plans for higher taxes. On Friday, global stocks were mixed, the USD weakened, and sovereign yields nudged up. Italy's peripheral spread widened modestly ahead of S&P's rating review (unchanged at BBB and a 'stable' outlook).
- Investors ended the week in a mixed mood as they weighed increasing coronavirus cases, vaccination progress and plans for higher taxes. On Friday, global stocks were mixed, the USD weakened, and sovereign yields nudged up. Italy's peripheral spread widened modestly ahead of S&P's rating review (unchanged at BBB and a 'stable' outlook).
- Euro area economic sentiment improved in April according to Markit's composite PMI (to 53.7 points from 53.2 in March). The increase was supported both by manufacturing (63.3) and services (50.3, above the 50-points expansion/contraction threshold for the first time since August). PMIs also posted strong figures in the U.S. (62.2).
- There is a heavy economic calendar this week: the Fed's monetary policy announcements on Wednesday, U.S. Q1 GDP figures on Thursday, and the release of April inflation figures and Q1 GDP flash estimates in several European economies on Thursday and Friday (eg., euro area aggregate, Germany, France, Italy, Spain and Portugal).