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Global Markets Show Mixed Signals as Economic Data Diverges

A risky-asset rally, lasting a month and buoyed by no further bank collapses, appears to be losing momentum as economic data fails to inspire confidence.

World map
World map

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.