PREVIOUS TRADING DAY EVENTS 05 April 2023

Announcements 

The reported Services PMI and ADP NF Employment Change figures show a morethanexpected drop in the US services sector activity, while private payrolls increased only by 145K in March, which is below all estimates. These weakerthanestimated economic data revived fears that a recession could be in store. Not to forget that the latest ISM factory survey showed further deterioration. The data raised concerns about the economy as credit conditions tighten and interest rates remain high.

Riskoff mood in Wall Street, with bonds climbing and equities dropping. The dollar rose alongside the Japanese yen. Gold was near a 13month high.

Recession risks have increased, said Mark Haefele, chief investment officer at UBS Global Wealth Management. The equity outlook is challenging. As the slowdown of the US economy becomes more apparent, we think investors should prepare for a peak in interest rates by considering opportunities in bonds.

A much weakerthanexpected ADP private employment change tally was, and with other highfrequency labour market metrics, suggests deteriorating labourmarket growth, said Stan Shipley at Evercore ISI. Whisper fears suggest a tepid jobs report on Friday.
Source httpswww.bloomberg.comnewsarticles20230404stockmarkettodaydowspliveupdates

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