Have Central Banks Done Enough?

The show recaps last week’s events and offers an outlook on trading activity and potential liquidity issues across North America and Europe for the week ahead.

North America

  • Equities volumes are lower and spreads are wider, ond volumes are significantly down week-on-week.
  • The average cost of credit protection for Financials rose by  0.4%, yet Energy Stocks were up 12.1% 
  • Germany Inflation data on Wed, BoE interest rate decision, and GDP growth data on Thurs.
  • EU axe data, which is within normal ranges, suggests a stronger proportion of EU dealer asks Vs bids of credit
  • GDP axe data, within normal ranges, suggests much higher net selling Vs buying of credit. 
  • Europe / UK
  • Equities volumes are up and spreads are tighter, whereas bonds ond volumes are lower week-on-week.
  • The average cost of credit protection for Financials rose by 7.4% and implied volatility was up 8.7%.
  • To look out for Regional banks’ shocks, data on US inflation, and CPI on Wednesday. PPI and Jobless Claims on Thursday.
  • US axe data, which is within normal ranges, indicates a higher proportion of asks versus bids  of credit.

Published on May 8, 2023

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