Strategy & economics
Caspar Rock: Monday markets - the week ahead on 1 April
Signs of progress on trade talks, strong Chinese activity data and mixed signals from stock and bond markets
Stock markets in optimistic mood…
Equity markets rallied into the close of last week following encouraging comments on a trade deal from the lead US negotiator. The momentum continued in Asia after strong Chinese activity data.
…but more worrying signals from bonds
Bond yields continue to grind lower and the inversion of parts of the US yield curve is attracting renewed attention. The negative yield on the German 10-year bund is also a source of concern for some investors.
The weak ahead
Early in the week, flash PMIs will give a first indication of activity levels in the global economy. At the end of the week, we have US employment data for March. In the UK, Brexit will continue to dominate the agenda ahead of an emergency EU summit on the 10th April.
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