Last night a gunman shot dead a policeman in Paris’s popular tourist destination Champs-Elysees. French officials are yet to release details about the gunman with Hollande stating that “investigations and raids are under way”. The horrifying events started as a car pulled up alongside a police bus, with a man opening fire on the bus with an automatic weapon, killing an officer and wounding two others. The gunman was shot dead by security forces.
Politics continues to dominate market movement this week. In the UK, Labour leader Jeremy Corbyn has said a Tory victory is not a “foregone conclusion”. Corbyn also dismissed claims that there will be a coalition between Labour and the SNP. In France, the consensus is that Centrist Macron and the far-right wing Le Pen are most likely to pass into the second round, along with favourite Macron. The first of two rounds of voting begin this Sunday, with the second vote being held on May 7th. If Le Pen continues to gain momentum we could see a drastic sell off of the Euro within the coming months. After, last night’s terror attack in Paris, Le Pen, Fillon and Macron have all announced that they will be cancelling today’s campaign events.
Yesterday afternoon, the US released two pieces of key high tier data. Firstly, the Philly Fed Manufacturing Index registered a worse than expected 22.0. Shortly after, economists’ gained an insight into the US labour market as the weekly jobless claims were released. Unemployment claims in the States narrowly missed consensus, posting 244k.
Today, focus in the UK switches from politics to the service sector as we have a key piece of tertiary data released this morning. UK retail sales are forecast to return to negative territory after last month’s bullish 1.4%. Volatility is expected during the release of this figure. Also today, the Eurozone release a raft of PMI data, including manufacturing and services from France and Germany.