020 7898 0500There was positive news from the eurozone on Friday as the purchasing managers index showed a strong base in the second quarter. The composite (manufacturing and services combined) purchasing managers’ index, which is seen as a good guide to growth, climbed to 56.7 from March’s 56.4. This is the highest reading in six years.
The week ahead is expected to be very busy. The second round of the French Presidential elections will, of course, be the primary focus following the success of Macron and Le Pen in the first round yesterday.
Meanwhile, in terms of economic data, the German IFO is set for release today. This is a survey of 7,000 businesses which asks them to rate the relative level of current business conditions and expectations for the next six months. It is therefore seen as a good barometer for confidence.
Next week’s May Day bank holiday means that the European Central Bank meeting has been brought forward to Thursday this week and, while no change is expected, the onus will be on market participants trying to second-guess the timing of interest rates.
Finally, we have the German retail sales, eurozone inflation and Spanish unemployment figures set for release.
