The dollar lost ground to both the euro and sterling, with the US currency not helped by a fall in the April US composite PMI contrasting to an improvement in the PMI in the Euro Area and the UK. The euro rose back to $1.07 while sterling increased to over $1.2450 for a time. The euro was down a touch against sterling, dipping just below 86p.
Yesterday’s Events
US equities shook off the weaker US PMI data and were helped by robust corporate earnings reports which boosted the S&P to a second consecutive daily gain, this time by 1.2%.
Activity in the US as measured by the composite PMI expanded at the slowest pace since the end of last year. The April reading fell to 50.9 from 52.1 in March. The details were even poorer with employment and orders sub-indices dipping into contractionary territory.
In contrast, European economic fortunes appear to be on the upturn according the April PMI composite reading. It rose to 51.4 from 50.3 in March, the highest in 11 months. The increase was driven by a robust rise in the services sector, particularly a strong increase in Germany, while the manufacturing sector remains in contractionary territory. In the UK, the composite PMI reading in April was also positive, rising to 54.0 from 52.8. It was all driven by a rise in the services sector while the manufacturing index fell.
In Ireland, the Government published its latest Stability Report. This contains its latest economic forecasts which sees the Government revise down its forecast for modified domestic demand for this year to 1.9% from 2.2% in its Budget day forecasts. This modest downward revision is due to a view in the report that consumer spending and investment is slowing but, on the other hand, there are plenty of signs that the economy is holding up, particularly in the robust labour market.
The Day Ahead
On the economic data front today we have the German IFO index and CBI report in the UK while we get capital goods orders in the US. On the speaker front we have the ECB’s Nagel, Cipollone and Villeroy due out.
Today's Talking Points 24.04.24
Market Commentary
The dollar lost ground to both the euro and sterling, with the US currency not helped by a fall in the April US composite PMI contrasting to an improvement in the PMI in the Euro Area and the UK. The euro rose back to $1.07 while sterling increased to over $1.2450 for a time. The euro was down a touch against sterling, dipping just below 86p.
Yesterday’s Events
US equities shook off the weaker US PMI data and were helped by robust corporate earnings reports which boosted the S&P to a second consecutive daily gain, this time by 1.2%.
Activity in the US as measured by the composite PMI expanded at the slowest pace since the end of last year. The April reading fell to 50.9 from 52.1 in March. The details were even poorer with employment and orders sub-indices dipping into contractionary territory.
In contrast, European economic fortunes appear to be on the upturn according the April PMI composite reading. It rose to 51.4 from 50.3 in March, the highest in 11 months. The increase was driven by a robust rise in the services sector, particularly a strong increase in Germany, while the manufacturing sector remains in contractionary territory. In the UK, the composite PMI reading in April was also positive, rising to 54.0 from 52.8. It was all driven by a rise in the services sector while the manufacturing index fell.
In Ireland, the Government published its latest Stability Report. This contains its latest economic forecasts which sees the Government revise down its forecast for modified domestic demand for this year to 1.9% from 2.2% in its Budget day forecasts. This modest downward revision is due to a view in the report that consumer spending and investment is slowing but, on the other hand, there are plenty of signs that the economy is holding up, particularly in the robust labour market.
The Day Ahead
On the economic data front today we have the German IFO index and CBI report in the UK while we get capital goods orders in the US. On the speaker front we have the ECB’s Nagel, Cipollone and Villeroy due out.
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