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Weekly financial market overview 03.05.-09.05.

News - May 10, 2021

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Konstantins Goluzins, CFA



Head of Asset Management
Phone.: (+371) 6700 0456
E-mail: trust@bib.eu

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Main events of the previous week

The Bank of England, as analysts had expected, kept its base interest rate at 0.1%. The regulator also decided to maintain the volume of the asset repurchase program at 895 billion pounds, including the buyback of government bonds in the amount of 875 billion pounds. Analysts did not expect changes in the parameters of the central bank's monetary policy. This policy aims to maintain economic growth, employment and a target inflation rate of 2%. The regulator also released a forecast that in connection with the abolition of coronavirus restrictions in 2021, the country's GDP will grow by 7.25%, and not 5%, as previously assumed. If this forecast is confirmed, it will be the most significant annual economic growth since the start of the publishing of the official macro statistics in 1949. The Bank of England predicts the first increase in interest rates by the II quarter of 2023.

Economic data

US. The trade deficit in March reached another record of $ 74.4 billion. Imports in March grew by 6.3% versus February and reached a historical record, while exports grew by 6.6% over the same period.

The number of initial jobless claims for the week was registered in the amount of 498 thousand, which is 92 thousand less than the week before and 42 thousand less than predicted by analysts.

The unemployment rate in April increased by 0.1 percentage points to 6.1%, and the number of Non-Farm payrolls amounted to only 266 thousand, which is 700 thousand less than expected and 504 thousand less than a month earlier.

China. The trade surplus in April amounted to $42.85 billion. Export growth in April amounted to 32.3% compared to April 2020, while import growth amounted to 43.1% over the same period.

Key events this week

  • On Wednesday, the Eurozone will publish data on industrial production for the month of March, and the US will report on the rise in prices for April, as well as changes in oil reserves for the week.
  • On Thursday, the US will know the number of initial jobless claims for the week.
  • On Friday, the US is to publish data on retail trade and industrial production for the month of April.

The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

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