(CercleFinance.com) – While London remains closed on this first Monday in May, continental markets fell sharply (-1% in Frankfurt, -1.8% in Paris) as the week started with poor macroeconomic indicators for the region.
The S&P Global PMI for manufacturing in the euro zone fell from 56.5 in March to 55.5, a 15-month low, in April: excluding France and the Netherlands, the PMIs everywhere posted their lowest level for more than a year.
“In summary, the manufacturing sector in the eurozone is about to go through a difficult period of falling production and soaring prices,” said Chris Williamson, chief business economist at S&P Global.
In addition, the economic sentiment indicator (ESI) fell in April compared to March both in the EU as a whole (-1.7 points to 104.9) and in the euro zone (-1.7 point at 105.0), according to the European Commission.
The week will see many other data appear, such as the composite PMI indices and the monthly US employment report, as well as the monetary policy decisions of the Bank of England and especially the Federal Reserve.
‘Markets are now not only pricing in a 50bp hike in the US this week, but also see a decent chance of a 75bp hike in June’, Capital Economics warns, pointing to an ‘extremely tight’ labor market ‘.
The next few days will also be busy on the results publication front, with for example those of BP, Airbus, Solvay, Adecco, Société Générale, ING and Adidas in Europe, or even Dupont, Pfizer, AMD and Moderna across the Atlantic. .
For the time being, Bayer is losing nearly 4% even if the pharmaceutical and agrochemical company declared itself Friday evening “on the right track” during its annual general meeting, organized in its stronghold of Leverkusen.
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