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FOREX : While the euro and the yen appreciate the dollar, European stock exchanges follow a different trend. The Ftse 100 continues to move uphill, recording new historic highs. The positive trend is only occasionally interrupted by sudden profits. The Bund’s 10-year performance grew by 0.5% to 0.42%, while the Gilt’s performance grew by 0.3 basis points to 1.14%. In the Eurozone, despite the modification of the ECB’s future forecast for the forthcoming week, spreads have to be reduced due to increased risk appetite.
Eurozone GDP growth for the first quarter was confirmed at 0.5% quarterly. The figure is consistent with the preliminary reading and is unchanged from the fourth quarter of last year. The annual rate dropped from 1.8% in the last quarter to 1.7%. Developments in the various Eurozone members continue to be diversified. The highest growth is recorded in Spain with a quarterly rate of 0.8%. Followed by Germany with 0.6%, France with 0.3% and Italy with just 0.2%. Much development does not help alleviate Draghi’s tasks, while the ECB is slowly marching towards the end of its expansive monetary policy.
Eurozone trade surplus rose from 18.8 billion euros last month to 23.1 billion euros. In the first quarter, the total was 57.3 billion euros, down from 65.3 billion euros in the previous quarter.
In Germany, Zew’s index of investor confidence marks an increase of 20.6. The result is slightly lower than expected, but better than 19.5 last month. The current condition indicator has risen from 26.3 to 35.1. For Zew, the Eurozone’s economic outlook sees a general improvement and the data reinforce the views of the BC’s hawks. However, the Executive Committee remains cautious, pointing out that, before starting to reduce expansive measures, it intends to see improvements in trust in real data.
In the UK, the April consumer price index exceeded expectations by 2.7% per year, which is the highest since 2013 and is higher than 2.3% in March. According to forecasts, the increase should have been 2.6%. The core consumer price index rose from 1.8% last month to 2.4%, up 2.2% ahead. The producer price index fell slightly from 17.4% in March, down from 17.9% to 16.6% in April. The prices of the silicon products remained unchanged at 3.6% per annum.