Daily digest market movers: Here comes the volatility

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  • Preliminary French HCOB Services PMI picked up to 50.5 in April from 48.3. German HCOB Services PMI soared to 53.3 in the same month from 50.1 in March. This pushed EUR/USD up to 1.0695, despite all other segments in the PMI lagging or being still in contraction in both France and Germany. 
  • Eurozone data showed that HCOB Services PMI rose to 52.9 in April from 51.5 in March, well above the expected increase to 51.8.
  • The weekly US Redbook Index for the week ending April 19 is set to be released at 12:55 GMT. The previous number was 4.9% for the week ending April 12. 
  • At 13:45 GMT, some fireworks are expected from the US preliminary S&P Global PMI data:
    • The Services component is expected to head to 52 in April from 51.7.
    • The Manufacturing number is expected to tick up to 52 from 51.9 in March.
    • The Composite Index was at 52.1 in March, with no forecast available for the current month.
  • At 14:00 GMT, New Home Sales are expected to rise to 0.668 million in March from 0.662 million in February.
  • In addition to the Home Sales data, the Richmond US Federal Reserve (Fed) Manufacturing Index for April will be released as well. Expectations are for a small increase to -7 from -11.
  • The US Treasury is allocating new bonds in the market at 17:00 GMT. This one will bear a 2-year maturity. 
  • In the commodity space, both Oil and Gas futures are falling as tensions in the Middle East ease.
  • Equity markets are in the green, though mildly. An outlier needs to be reported:  the Hong Kong Hang Seng is down 0.70%. 
  • According to the CME Group’s FedWatch Tool, expectations are further cementing that the Fed will keep its monetary policy unchanged in June, with a small 15% chance for an interest rate cut in that meeting. An initial interest rate cut from the Fed is now foreseen for September. 
  • The benchmark 10-year US Treasury Note trades around 4.62%, a touch softer for this week. 


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