Financial Markets Daily Report25 April 2022
In the last session of the week, better-than-expected PMI data failed to boost sentiment, as investors remained focused on feeble corporate results and on the hawkish shift from central banks. On Sunday, Emmanuel Macron won the second round of the French Presidential elections with 58.6% of the votes.
- In the last session of the week, better-than-expected PMI data failed to boost sentiment, as investors remained focused on feeble corporate results and on the hawkish shift from central banks. On Sunday, Emmanuel Macron won the second round of the French Presidential elections with 58.6% of the votes.
- PMIs in the euro area surprised to the upside, led by advances in the service sector (57.7 from 55.6), while the manufacturing sector slowed down (55.3 from 56.5). In the US, by contrast, the composite index moved down from 57.7 to 55.1, but still well above the 50-point growth threshold.
- In this context, volatility increased and stock indices declined across the board. In fixed-income markets, yields on euro area sovereign bonds edged up and peripheral spreads widened. Oil and European gas prices declined.
- This week, the focus will be on the first estimate for Q1 GDP (euro area and Spain on Friday and US on Thursday).