Coffee Break

Coffee Break :
  • Week

Last Week in a Nutshell

  • US Fed Governor Lael Brainard suggested the US Central Bank could start a reduction of its balance sheet as early as May and would be doing so at “a rapid pace”. Global yields rose sharply on the news.
  • Internals of the most recent US ISM manufacturing survey (namely the difference between new orders and inventories) have turned negative for the first time since the pandemic.
  • The important financial hub of Shanghai is battling a new wave of coronavirus infections for the fourth week straight. China’s Caixin Services PMI surprised to the downside, falling 8.1pt, to 42.0
  • The European Union formally adopted its fifth package of sanctions against Russia. The package includes bans on the import of coal, wood, chemicals and other products. It is to fully come into effect by August.

What's Next?

  • French President Emmanuel Macron’s fight for a second term is being challenged by Marine Le Pen’s popularity in the world’s seventh largest economy. As polls predicted, she made it through the first round.
  • The European Central Bank will hold its monthly meeting. The bank has already opened the door to normalisation. A recalibration of its purchases programme should kick off the process.
  • March’s CPI and PPI data for the US are expected. Those will be the last ones published ahead of this month’s Fed’s meeting.
  • Soft data on economic activity is due: April’s readings of the University of Michigan’s sentiment indicator and Germany's ZEW survey. And finally, Q1 earnings season is getting started.

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