On Tuesday, Sentix released unexpectedly positive data on investors’ expectations. Investors’ optimism about the eurozone economic recovery hit a record high in April, amid hopes that faster vaccinations would ease quarantine measures, according to the research. An indicator measuring the current situation surged to the levels that were last recorded before the pandemic – 13.1. “With significant fiscal policy softening and continued monetary support from the European Central Bank, there are significant inflationary risks to enter into the picture in the coming months,” the research company explained.
These figures supported the Common European Currency, which demonstrated the largest intraday gains among the G10 currencies. The stock market has barely reacted to the data as trading volumes have decreased significantly recently. The trading volume of the S&P 500 on US exchanges fell below 10 billion shares for the first time this year, which is roughly the same as trading volume during the pre-holiday market closure. The maximum stock trading volume was about 25 billion shares.
US labor market data showed that the vacancy rate increased to a two-year high in February, boosted by the recovery of business activities in industries that were hardest hit by the pandemic. This fact reinforces the signs of a recovery in the American economy.
There is a correction observed in the credit market after Janet Yellen’s statements about the need to maintain low interest rates in the coming years. The Treasury yield fell just below 1.64%. 2-year bonds fell to 0.15%, which led to the dollar decline.
Additional pressure on bonds yield is exerted by oil quotes. Black gold is gradually declining as investors expect a reduction in consumption due to new restrictions in Europe. WTI crude oil fell below $60 p/b.
Main market quotes:
- S&P 500 (F) 4,069.62 +5.62 (+0.14%)
- Dow Jones 33,430.24 -96.95 (-0.29%)
- DAX 15,227.35 +14.67 (+0.10%)
- FTSE 100 6,883.95 +60.40 (+0.89%)
- USD Index 92.365 +0.017 (+0.02%)
- UK Services PMI (Mar) at 11:30 (GMT+3);
- Canada Ivey PMI at 17:00 (GMT+3);
- US Crude Oil Stocks at 17:30 (GMT+3);
- FOMC Minutes Publication at 12:00 (GMT+3).