PREVIOUS TRADING DAY EVENTS 04 May 2023

Announcements  

The PMI figures yesterday indicated that the business activity in the Eurozone experienced growth in April, yet less than initially indicated. April was the surveys fourth straight month above the 50 mark that separates growth from contraction.

The services sector is in robust shape across the eurozone Italy and Spain are currently the main driving forces, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

Although the blocs order backlog grew at a weaker pace, across all HCOB PMI indicators, everything suggests that growth in the eurozone services sector will continue in the months ahead, he added.

Source httpswww.reuters.commarketseuropeeurozoneaprilbusinessactivitygrowsstrongservicesdemandpmi20230504

The important scheduled figure of the week, ECBs Main Refinancing rate, was released yesterday at 1515 and was reported as expected at 3.75. The European Central Bank signalled that since inflation is way above target, more tightening is to come. Headline inflation has declined over recent months, but underlying price pressures remain strong.

We are not pausing that is very clear, ECB President Christine Lagarde told a press conference. We know that we have more ground to cover.

She added that interest rates were not yet sufficiently restrictive to get inflation down to the ECBs 2 target and made reference to future policy decisions, suggesting that more than one additional rate rise…