UK PMI Manufacturing Below Expectations But Holds Above The 50 Level

(AU) Reserve Bank of Australia (RBA) cuts Cash Target by 50bps to 3.75%; more than expected

(PE) Peru Apr Consumer Price Index M/M: 0.5% v 0.4%e; Y/Y: 4.1% v 3.9%e

(JP) Japan Apr Vehicle Sales Y/Y: 92.0% v 78.2% prior

(IN) India Mar Trade Balance: -$13.9B v -$13.9Be; Exports Y/Y: -5.7% v + 4.3% prior; Imports Y/Y: 24.3% v 20.7% prior

(IE) Ireland Apr NCB Manufacturing PMI: 50.1 v 51.5 prior

(AU) Australia Apr RBA Commodity Price Index Au: 99.5 v 99.1 prior; Commodity Index SDR Y/Y: -4.2% v 2.1% prior

(DK) Denmark Mar Retail Sales M/M: 0.2 v 0.1% prior; Y/Y: +1.2% v -0.2% prior

(UK) Apr PMI Manufacturing: 50.5 v 51.5e (lowest since Dec 2011)

(DK) Denmark Apr PMI Survey: 61.8 v 53.0 prior (12-month high)

Fixed Income

(UK) DMO sold £3.75B in 4.5% Mar 2019 Gilts; avg yield 1.495% v 3.795% prior; Bid-to-cover: 1.79x v 2.51x prior; tail: 0.4bps v 0.5bps prior

Notes/Observations

Continental Europe closed for May Day (Labor Day) holiday

RBA cuts by 50bps to 3.75% (more than expected)

China remains on course for a soft landing with PMI Manufacturing improving for the 5th straight month to a 13-month high reading of 53.3

UK PMI Manufacturing at 5-month low but holds above the 50 level

Equities

Equities: FTSE 100 +0.30% at 5,754

Note: Other European Bourses were closed for the May Day holiday

In London, the FTSE 100 opened the session slightly higher and is currently up by about 0.30%, amid the release of weaker than expected April UK manufacturing PMI. In terms of specific sectors, banks and resource related companies are trading mostly higher. The other main European indices are closed in observance of the May Day holiday.

Shares of Lloyds Banking Group [LLOY.UK] are higher by over 1%, after reporting Q1 earnings. BP [BP.UK] has declined by over 2%, after reporting weaker than expected Q1 earnings, as quarterly production and downstream earnings declined y/y. Defense company, Chemring [CHG.UK] has gained more than 15%, after being awarded a US Army contract. Fund manager, Man Group [EMG.UK], is lower by over 5% following the release of its Q1 results, while CSR [CSR.UK] is gaining over 2.5% after reporting Q1 earnings. In other movers, Aer Lingus [AERL.UK] is higher by over 2%, after noting that Etihad Airways would acquire a 2.9% stake in the company.