Daily Market Report 29/04/14


Consumer confidence in Italy jumped to 105.40 in April from 101.9 in March showing increasing optimism about the future of the country’s economy.

The data also suggests that the new government headed by Premier Matteo Renzi is having a positive impact on the mood of the nation.

The euro finished relatively flat on the day as investors clearly seem nervous ahead of key inflation data due for release later this week from Germany and the Eurozone.


Data from the US was fairly positive with pending home sales increasing month on month in March to 3.4%

The data suggests that actual house sales should bounce back following the lull in winter.

More encouraging data was found in the Dallas Fed manufacturing survey which showed that factory activity rose higher than expected to 11 beating expectations of a rise to 6. In particular factory activity in Texas climbed for the 12th straight month.

The data gave the US dollar a bit of respite after having weakened to a fresh 4 ½ year low against the pound in early European trade, with the greenback finishing unchanged on the day.


The UK and the Eurozone look to be in key focus this morning.

UK 1st quarter GDP figures are forecasted to show an increase in economic growth to 0.9% from 0.7% in the 4th quarter of 2013.

Eurozone consumer confidence and business sentiment is set to have improved for the month of April which should continue to support the euro early on today. But we could see the euro under selling pressure should the rate of inflation fall in Germany.

Month on month inflation is forecasted to come in at -0.1%, and thus deflation; whilst year on year inflation is set to have increased to 1.4%.

Key Announcements:

9.30am – GBP – Gross Domestic Product (Q1): Expected to rise to 0.9%.

10.00am – EUR – Economic Sentiment Indicator (Apr): Expected to rise to 103.

10.00am – EUR – Consumer Confidence (Apr): Expected to rise -8.7.

10.00am – EUR – Industrial Confidence (Apr): Expected to rise to -3.

13.00pm – EUR – German Consumer Price Index (Apr): Expected to fall to -0.1%.

15.00pm – USD – Consumer Confidence (Apr): Expected to rise to 83.