Bonds and Bitcoin Respond to Soft US Data
Soft second-tier data in the U.S. has pushed bonds higher for the first time in weeks, while Bitcoin experiences a significant drop. Markets now focus on purchasing managers' index data as a key growth indicator.
Contraction in British and Euro Zone Manufacturing
Manufacturing surveys in Britain and the eurozone are expected to remain in contraction territory, signaling ongoing economic struggles in the sector.
China's Surprising Export Growth and Slowing Manufacturing
China reported impressive export growth in March, but analysts believe it to be a one-time occurrence. The nation's manufacturing, often a leading indicator for Europe and other regions, is slowing down.
Taiwan's Export Orders Plunge
Taiwan, a tech industry bellwether, is experiencing a sharp decline in export orders, potentially indicating wider economic concerns.
Robust Services Sector Signals Strong Demand
In contrast, the services sector demonstrates robust readings, suggesting strong demand, inflationary pressure, and a possible push for higher interest rates.
European and British Services PMIs Hold Steady
European and British services PMIs are expected to remain stable and maintain their expansionary trend. However, British retail sales are predicted to fall, creating a clearer economic picture.
Asian Markets Cautious as Japan's Nikkei Surges
Asian markets tread carefully, with the MSCI's Asia ex-Japan index facing its worst week since Silicon Valley Bank's failure six weeks prior. In contrast, Japan's Nikkei reached an eight-month high, fueled by investor optimism.
Japanese Inflation and Central Bank Policy Pressure
Japanese core inflation has reached its highest level since 1981, pressuring the central bank to reconsider its ultra-easy policies. The Bank of Japan is set to meet next week.
Key Market Influencers for Friday
Factors that could influence markets on Friday include Eurozone, U.K., and U.S. PMIs, British retail sales, speeches by Fed's Cook and ECB's de Guindos, and earnings reports from Proctor and Gamble, Regions Financial, and Schlumberger.