Currencies not much changed

The main exchange rates are not much changed this morning. The euro is trading a little above $1.22 against the dollar while sterling is trading a little below $1.42 against the US currency, leaving the single currency-pound rate hovering just above the 86p level

Equity markets gain ground yesterday, with the S&P 500 in the US adding around 1%, and European indices have opened in positive territory again this morning. In bond markets, US 10-year yields fell by around 5bps to close at 1.62% while equivalent German yields ended flat on the day at -0.11%

Retail sales in the UK jumped by more than 9% in April (from March) as the economy re-opened further, leaving them some 42% above their level in April 2020 (when the economy was effectively in lockdown)

The Composite PMIs for the German and French economies both remained in expansionary territory in May – at 56.2 and 57.0 respectively – according to data published earlier this morning, which points to positive GDP growth in both countries in the second quarter of this year

Data due today includes PMIs for the Euro Area and the US while consumer confidence is scheduled in the Euro Area as well