‘BoE signals readiness for more stimulus to fight pandemic crisis’ – Bank of England policymakers signalled more stimulus may be needed to combat the UK’s economic slump in the future but agreed no new measures are needed now. The UK central bank voted unanimously to keep interest rates at 0.1%, while an immediate 100-billion pound bond buying program was voted against 7-2. (Bloomberg)
‘China exports post unexpected gain but rebound seen as temporary’ – Chinese exports in the year to April grew 3.5%, wildly missing economists’ expectations of an 11% contraction. Meanwhile, imports fell 14.2% (expected fall was 11%). The finer details of the print show shipments to South-East Asia drove the reading higher, since EU and US shipments contracted significantly. (Bloomberg)
Overnight, US equity futures ticked higher alongside the Chinese Yuan and Australian Dollar after China posted unexpected growth in exports. Treasuries remained relatively unchanged while WTI Crude stabilised around $24 a barrel. Sterling opens London’s session higher after an early Bank of England announcement held off on fresh stimulus for now.
Chinese exports year on year grew 3.5%, expect -11%
German Industrial Production came in at -9.2%, expected -7.4%
Italy’s Retail Sales (April) expected -15% - 9am
US Initial Jobless Claims expected 3 million – 1:30pm