Focus on April PMIs today

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In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction. We expect that service PMIs will remain above 50 as rising real wages and a strong labour market are supporting activity. The manufacturing PMIs will likely increase but stay below 50 as the global manufacturing cycle is slowly turning positive, inventory dynamics support production, and financial conditions have eased. We also keep an eye on PMIs from the UK. In Sweden, Riksbank governor Erik Thedéen gives a speech on and the current economy at 18.00 CET. The Hungarian National Bank will announce their rate decision following their rate setting meeting. We expect the bank to deliver a 50bp rate cut. If we are right, it will be the seventh cut since October last year. Tesla will deliver their Q1 earnings today, after Tesla fell 3.4% in yesterday's trading to record the seventh straight loss.

#Pmis #EuroArea #ServiceSector #ManufacturingSector #Sweden #Hungary #Riksbank #RateDecision #Tesla #Earnings

https://www.fxstreet.com/analysis/focus-on-april-pmis-today-202404230604