Market movers today
In the euro area the final manufacturing PMIs are due for release today and focus will be on the first estimates for Spain and Italy. The Italian manufacturing PMI has increased considerably the past three months, while the Spanish one has remained broadly stable at a high level. We expect a small increase in the Spanish figure and look for the Italian one to remain around the new higher level.
The euro Sentix Investor Confidence indicator will give a first impression of sentiment in May. We expect a small decline reflecting last week's corrections in stocks, bonds and the USD.
In the US San Francisco Fed President Williams will speak. He is considered neutral but last week he made some comments with a hawkish twist as he said a June rate hike is on the table. We continue to expect the first Fed funds rate hike in September, whereas the market currently prices a lift-off in December.
During the rest of the week focus will be on the US labour market report for April, which will be interesting as indicators have pointed in different directions. The UK general election to be held on Thursday will also get attention as polls have been relatively stable suggesting the election is unusually open.
In Norway there are a number of data releases ahead of the Norges Bank meeting on Thursday, where we expect Norges Bank to keep policy rates unchanged.
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