Trader TV: This Week – Diverging Paths: The US Vs EU Rate Cycles

Published on 17 April 2023

A recap of events and an outlook of trading activity and liquidity issues for the week ahead.

North America

  • Equities and bond volumes fall. Bid-ask spreads widened in equities on exchanges
  • Primary equities: IPOs in Consumer Discretionary (Nasdaq) and Mining (NYSE) Apr 18
  • Data: A week for earnings results e.g. Tesla  and the initial Jobless Claims on Apr 20
  • US Axe data seeing normal ranges but indicating the proportion of buying increasing

EMEA

  • Volumes overall fell. Yet, equities spreads are tighter compared to the end of Mar.
  • UBS and Investor AB see historically high CDS levels. 
  • EU / UK data: UK unemployment rate, April 18; Inflation, CPI, and PPI data April 19
  • EU Axe data in historical norms indicate a greater proportion of buying Vs selling activity