It’s been a relatively slow start to the week but things should pick up on “Super Thursday” as we get the latest monetary policy decision from the Bank of England, the minutes from the meeting, the latest inflation report and we hear from Governor Mark Carney.
European equity markets are expected to open slightly higher on Tuesday following mixed trade in Asia overnight, as Chinese manufacturing data disappointed but the RBA cut interest rates to record lows of 1.75%.
U.S. futures are pointing to a negative open on Thursday, tracking losses in Europe and Asia overnight, as investors weigh up the slightly hawkish Fed statement on Wednesday and look ahead to the advanced first quarter GDP data.
European equity markets are currently on course to open a little higher but these gains are marginal and at this stage only represent a slight paring of Monday’s losses. Weakness in commodity markets – usually associated with the risk-off trade – weighed on indices on Monday and again during the overnight session in Asia, and could continue to do so throughout trade today (Tuesday, April 26).
We could be in for another rocky week in the markets with particular focus back on the central banks as we get the latest monetary policy decisions from the Federal Reserve and Bank of Japan, the latter of which is expected to announce new stimulus measures.