A Growing Eurozone
As we head into the long weekend the economic calendar for the UK is practically empty so any major moves will be influenced by events elsewhere.
The strong UKIP showing in the local elections should not really have any impact whatsoever.
We have already have some news out of Germany this morning which merely highlights the growing divergence in the Eurozone. German GDP released early today showed an increase of 2.5% in Q1 and this was driven entirely by internal demand and even though exports are expected to grow, imports are expected to grow much more.
This is compared to France where yesterday’s PMI release showed manufacturing and services both shrank this month. Mario Draghi is expected to wave his magic wand on 5th June so the impact of this should be interesting.
There was some other good news in Europe as Greece and Spain both had their credit ratings upgraded to a BBB status. This is a particularly remarkable turnaround for Greece which was also raised to a B at Fitch.
There is also some Italian data out this morning and some US new home sales stats out later in the day.
Have a good weekend and see you on Tuesday.
Image: © Alex Guibord / Photopin