Macroeconomic/ geopolitical developments
- A second week with an absence of any notable developments or contagion from the March banking crisis, and again no new news to start April was seen as good news, with fears of a more protracted or deeper financial meltdown further easing.
- European markets were fully closed on Friday as were US cash equity markets for the Easter Good Friday holiday, though US Bond and futures markets had a partial open session.
- Despite US markets being closed or partially closed Friday, the US Labor Department released the US Employment report, with the Non-Farm Payroll number coming in at at 236K, close to consensus at 239K and the Unemployment Rate at 3.5%, below expectations at 3.6%.
- Earlier in the week US Purchasing Managers Index (PMI) data from the Institute of Supply Management (ISM), saw the Manufacturing index fall to a near three-year low to 46.3, below expectations of 47.5, whilst the Services index posted at 51.2, below consensus of 54.4.
Global financial market developments
- The major US stock averages were little changed in a narrow trading range last week, but retain a positive bias from the March rally.
- European indices were also little changed, consolidating the March recovery.
- US and European Bond were also in consolidation modes, but with European yields slightly lower for the week and US yields slightly higher.
- Forex markets were quiet with the US Dollar weakening slightly again.
- Gold pushed higher to another new 2023 and multi-month high, near to record levels.
- Oil prices surged on Monday with the price leaping over 8% and held at elevated levels, after the announcement of supply cuts by OPEC+ the prior weekend, close to a multi-month high.
Key this week
- Geopolitical events: Easter Monday holiday on 10th April, UK and European bond and stock markets are closed, US markets are fully open.
- Central Bank Watch: Wednesday sees the Bank of Canada (BoC) interest rate decision and statement, and we also get the FOMC Minutes released. From the Fed, Williams speaks Monday., Harker on Tuesday, Kashkari Wednesday and Waller Friday.
- Macroeconomic data: Key will be the US CPI inflation data released on Wednesday, for Europe, UK GDP and German CPI are the standouts for the week on Wednesday, then US Retail Sales data is released Friday
- Earnings Season: US earnings season kicks off in earnest on Friday with the financial sector, JP Morgan, Wells Fargo, BlackRock and Citigroup all report.
|Date||Key Macroeconomic Events|
|10/04/23||Easter Monday holiday, UK and European markets are closed; Fed’s Williams speaks|
|11/04/23||China CPI; EU Retail Sales; Fed’s Harker speaks|
|12/04/23||Fed’s Kashkari speaks; US CPI; BoC interest rate decision and statement; FOMC Minutes released|
|13/04/23||Australian Employment report; China trade data; UK GDP Industrial and Manufacturing Production; German CPI; US PPI|
|14/04/23||US Retail Sales; Michigan Consumer Sentiment; Fed’s Waller speaks|