Central Banks Turn Softer On Fragile Global Recovery‏

Published 04/19/2013, 04:13 AM
Updated 05/14/2017, 06:45 AM
Market Movers ahead

The Fed is expected to scale down rhetoric as the economy enters a soft patch.

In the U.S., April non-farm payrolls are expected to show only a modest increase.

In the euro area, a relatively weak PMI and German IFO are expected to pave the way for a 25bp cut in ECB's refi-rate.

Italy: the struggle to create a new government intensifies.

Bank of Japan has gone all in, and is not expected to ease further - focus will be on Bank of Japan's new medium-term inflation forecast.

In China, resilient PMIs in April should ease some of the fear of renewed deceleration.

In Denmark, the Nationalbanken is expected to follow ECB and cut its lending rate by up to 25bp.

Global Update

In China, the disappointing Q1 GDP growth calls the strength of the recovery into question.

U.S. data continues to suggest the economy has entered a soft patch.

Commodity prices drop as data suggests the global recovery remains fragile.

German opposition to rate cut appears to be waning on the ECB board.

Japan appears to get the green light for its aggressive monetary easing from G-20.

Riksbanken surprisingly dovish, but rate cut is not yet in the cards.

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