60 Second Snapshot May 4th
04 May 2021
LAST WEEK IN 30 SECONDS...
Last week saw blowout earnings announcements for mega cap companies including Apple which posted double digit earnings and Amazon whose profitability benefited heavily from AWS, its web services subsidiary. Despite the beat on earnings for these stocks, global equities were flat last week suggesting such earnings were largely factored into existing stock prices.
Elsewhere, Eurozone government bond yields rose higher last week on the back of rising inflation expectations. The German 10-year bond yield rose 0.06% higher to finish the week at -0.20%.
THIS WEEK IN 30 SECONDS...
From an economic perspective, the remainder of the week sees US factory orders updates on Tuesday, Eurozone retail sales and Chinese export data announcements on Thursday. Earnings updates continue to draw investor attention with the turn of Pfizer, Volkswagen and BMW amongst a raft of corporate updates due this week.
The Group of Seven countries (G7), representing the largest advanced economies, meet this week for the first time in two years which marks a significant movement in the containment of Covid-19 for the face-to-face meeting to proceed.
ATLANTIC INFLATION GAP
Rising commodity prices continue to press on headline inflation. When looking at the medium-term outlook for US and Eurozone inflation, respective rates continue to stay elevated. What is interesting, however, is the evolving inflation outlook for the US remainsconsistently higher than within the Eurozone.