Sterling rises after UK economy beats expectations and exits recession
The British economy grew by 0.6 per cent in the first quarter of the year, beating expectations and leaving behind a mild recession in 2023.
labour market
Bank of England moves closer to first rate cut since 2020
The Bank of England’s Monetary Policy Committee voted 7-2 to keep interest rates at 5.25 per cent, with Deputy Governor Dave Ramsden and Swati Dhingra voting for a cut to 5 per cent. The BoE hinted at a potential rate cut in June and emphasized the importance of upcoming economic data releases. Governor Andrew Bailey expressed optimism about the direction of inflation.
BoE in focus, gold and oil struggle
European markets and US futures are trading higher as investors await two important events that will shape trading activity for the rest of the month. The Dow Jones chart shows bulls taking control, while Airbnb’s weak guidance indicates a potential slowdown in economic activity. The Bank of England is under pressure to lower interest rates, and US unemployment claims data could impact the market. Gold prices are influenced by the dollar index and Fed’s monetary policy, while the OPEC cartel’s meeting on June 1 will be crucial for oil prices.
Focus on earnings and data, gold continues retracement,
– Investors and traders are focusing on earnings and economic data, with the Dow Jones industrial average posting its fourth consecutive winning session.
– European markets are trading higher, with retail sales data in Europe showing better consumer confidence than expected.
– Traders are awaiting news from the Bank of England on Thursday regarding monetary policy, with expectations of no interest rate change but potential for a more hawkish stance.
– In the US, focus is on earnings, with Disney in the spotlight. Concerns are raised about their streaming business in a competitive landscape.
– Gold prices are dropping as the dollar index gains strength, with uncertainty about Fed’s interest rate decisions.
– Weekly jobless claims on Thursday will impact gold prices and Fed’s monetary policy decisions.
USD weakens on poor NFP data, slower wage growth
The USD weakened on Friday as the U.S. Bureau of Labor Statistics reported weak labor demand and slowing wage growth in April.
German economy skirts recession, helped by construction and exports
The German economy grew more than expected in the first quarter, with gross domestic product rising 0.2 per cent. The economy skirted a recession thanks to the construction sector and exports.
Real economic growth to pick up in 2025, says UCy
Real activity growth in Cyprus is expected to continue at a similar pace as in 2023 and gather momentum in 2025, with real GDP growth forecasted at 2.6% in 2024 and 3.3% in 2025. The growth forecasts have been revised up from previous estimates.
High share of overqualified workers, ICT sector thrives
Cyprus is among the top countries in Europe in terms of the gross value added by the provision of services in the information and communication technology sector.
President reiterates support for businesses , — wants to “turn challenges into opportunities”
Fact: President Nikos Christodoulides addressed the Cyprus Employers and Industrialists Federation (Oev) during their annual general meeting and reiterated the government’s support for the local business community. He emphasized that businesses are the driving force behind economic development and highlighted the importance of cooperation between the public and private sectors to facilitate a better environment for businesses, promote innovation, and achieve sustainable economic growth.
Deal agreed on foreign workers, living conditions to be improved
A deal was struck over the employment of third-country nationals in Cyprus, with specific consequences specified for those who do not adhere to housing standards.