Market Information Monday 6 May 2024

The British services sector showed slightly more growth in April than previously measured, according to final figures from S&P Global. The purchasing managers’ index (PMI) measuring the country’s services sector activity stood at 55.0 compared to 53.1 the previous month, with a preliminary reading reporting an index of 54.9. However, the purchasing managers’ index for the British industry declined from 50.3 to 49.1, resulting in the composite index rising from 52.8 to 54.1, with an index reading above 50 indicating growth.

In April, job growth in the United States fell significantly below expectations, with only 175,000 jobs added, compared to the anticipated 240,000. Unemployment reached 3.9 percent, 10 basis points higher than expected. Hourly earnings rose by 0.2 percent to 34.75 dollar, with a yearly wage growth of 3.9 percent, slightly lower than economists’ forecast of 4.0 percent.

Oil prices closed lower, marking the largest weekly percentage loss since early February. The June futures for a barrel of WTI crude oil settled at 78.11 dollars on the New York Mercantile Exchange, down 1.06 percent on Friday. This amounted to a weekly loss of 6.85 percent, although the price remains 9.02 percent higher year-on-year. The decline was attributed to reduced concerns over supply disruptions in the Middle East, robust U.S. production, and increasing American inventories, coinciding with a decrease in demand and worsening economic growth. Geopolitical developments in the Middle East are expected to remain a key focus next week, with traders noting that reduced tensions in the region have led to a lower risk premium, limiting upward pressure on oil prices, although risks remain high.

The 6M Euribor increased with 3 basis points to 3.83% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.78% compared to previous business day.