Query: Can anyone think of a reason that will cause equities to correct more than 5% over the next month?
- Chicago PMI declined to 49 vs 52.5 exp and 52.4 prev. This was the lowest reading since Sept 2009
- US Consumer Confidence improved to 68.1 in April vs 61 exp and 61.9 prev
- US CaseShiller Home Prices rose 1.24% MoM in Feb vs 0.9% exp and is now up 9.3% YoY
- EU Unemployment hit a new all time high of 12.1% in March.
- GfK consumer confidence in Germany increased to 6.2 from 6.0, above expectations of 5.9.
- German Retail Sales declined -2.8% YoY in March vs -1.2% exp and -2.2% prev
- The SNB increased their allocation to equities from 12% to 15%, buying 10bn CHF in stocks. The central bank also sold 3bn CHF each of USD and EUR and bought 5bn CHF in yen. FX reserves increased by 2.5bn, which cannot be accounted for and may be covert FX intervention by the SNB during the quarter.
- Wed: UKMfg PMI, US ADP, ISM, Oil Inventories, FOMC, Japan Monetary Base, China HSBC Mfg PMI
- Thu: Italy Mfg PMI, ECB, US Trade Balance, Initial Jobless Claims, Australia Services PMI, China Non-Mfg PMI
- Fri: UK PMI Services, US Employment, US ISM Non-Mfg
- Mon: Australia Retail Sales, China HSBC Services PMI, Italy Services PMI, EU Retail Sales, CanadaBuilding Permits, Au Trade Balance
- Tues: RBA