Weekly Macro & Markets View

What were the key global economic data releases, what is Zurich’s view and what does this mean for financial assets?

Weekly Macro and Markets View, Week 18

UK manufacturing activity rises to the highest in four years
While both manufacturing and services activity have gained momentum in April, the recovery in the services sector remains modest.
Survey data show that sentiment and activity are weakening in the Eurozone while price pressures are building
The ECB is faced with a difficult dilemma, but rates are set to be kept unchanged in this week’s policy meeting while market pricing of the rate outlook appears too hawkish.
In Japan, core-core inflation remains firmly above 2% even as headline inflation appears benign due to government fuel subsidies absorbing surging energy costs
With underlying inflation firm and a weak yen lifting import costs an April move would look prudent, but Governor Ueda’s recent emphasis on both growth and inflation risks has cooled tightening bets for this week.