Have Central Banks Done Enough?

Published on 8 May 2023

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.