Today focus will be on global PMIs. We forecast euro manufacturing PMI todecline slightly after it peaked at 54.0 in January. The development in the orderinventorybalance does not point to further improvement and the uncertaintyconnected with the situation in Ukraine is likely to have affected business sentimentin the euro area in April. On the other hand, new export orders could start to stabiliseas US data have been stronger going into Q2 while the Chinese manufacturing PMIappears to have bottomed. In the US the Markit manufacturing PMI is expected toshow a slight increase in April.
We expect US new home sales to increase after they dropped to a five-month low inFebruary. Yesterday US existing home sales fell less than expected and it seems thatsales are stabilising after falling steadily since July last year. We look for a recoveryin US housing in H2 as the effect of higher mortgage rates fades.
Bank of England’s Monetary Policy Committee publishes the minutes of its Aprildecision. Although inflation was below target for a second month in a row, webelieve the BoE is comfortable on hold and the debate within the MPC is when/howto tighten.
Focus will also be on Q1 earnings reports with 40 companies in the S&P 500 indexincluding Apple and Boeing releasing earnings results today.
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Danske Bank