EU Daily Market Wrap - 30th April 2019

EU Daily Market Wrap - 30th April 2019

Today's Highlights

  • EU unexpected growth eases downturn fears;

  • UK PM May to end Brexit talks with Labour Next Week;

  • US Chicago PMI misses expectations;

  • Alphabet disappoints on earnings;

  • News report suggest punitive tariffs may obstacle trade talks;

  • Venezuela Guindo to attempt coup against Maduro;

Macro Review

Finally some nice moves in the market after a busy day on the data calendar and a couple of interesting headlines on Brexit. The release of main EU countries inflation and quarterly growth data took the morning limelight, showing signs of a possible turnaround in the recent negative sentiment over the European Economy. The 0.4% increase in the euro-region GDP during Q1 was in fact the twice the pace expected from the street with Italian GDP growth suggesting a rebound outside of recession zone. Signs of resilience out of Europe which will make the next ECB meeting particularly interesting should they adjust their communication towards a more hawkish stance. On Brexit, reports suggested PM May intention to find a compromise with the opposition by the end of next week in order to avoid holding European Election on May 23rd.

US Equities came off recent record highs after disappointing earnings from Alphabet and slight negative tone on US-China trade negotiations. Another day of divergence between US and EU stocks as European appetite restores back to positive after positive growth data.

The FX space today was mainly led by gains in EUR and GBP after positive developments on Brexit and positive European data. JPY also traded positive amid slight risk-off. AUD was unchanged for the day after the overnight sell-off.

Crude settled above the 63 level after a volatile session signed by an initial jump to the 64.74 level also previous level of support from last week. No real move related to the headline suggesting Venezuela opposition leader Guindo's coup to gain power.

Gold traded remained above the 1280 level after a messy session amid a weaker US Dollar and Risk-off tone.

The Day Ahead

  • US ISM Manufacturing PMI (2.00 pm);

  • US Weekly DoE Oil Inventories (2.30 pm);

  • US FOMC meeting (6.00 pm);

EU Close

If you missed the morning briefing from the desk click HERE

Hope you enjoyed the session.

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