Dear Reader,

Today's overview of economic news and market action

• Further improvement in investor sentiment yesterday
• Reflected in strong gains on the main equity indices
• Data-wise, some positive macro news from the UK and Eurozone
• Currency-wise, sterling and euro gained versus dollar
• EUR/USD edged back up nearer to $1.07
• The firmer sterling tone saw EUR/GBP trading just below 86p
• Today’s macro highlights are the German Ifo (Apr) and US durable goods (Mar)

PMI fell to 49.6 in Mar. The slight decline reflected a fall in new business and output and a sharp drop in sentiment. Meantime, inflationary pressures in the sector continued to build

ECB signals June rate cut on the cards

As widely anticipated, the ECB’s Governing Council meeting for April saw the central bank maintain its key deposit rate at 4%. It marked the fifth consecutive policy meeting that the ECB has kept rates unchanged. There was “consensus” rather than unanimity within the Governing Council on the decision.

Geopolitical Tension to the Fore Once Again

This week was very much characterised by “risk-off” sentiment in markets, as rising geopolitical tensions boosted safe haven assets.