Stocks under pressure

Equity markets were under pressure again yesterday, as trade concerns remained to the fore following Trump’s tariff tweets, with both European and US indices shedding around 2%. This prompted a further dip in core bond yields, with German 10-year yields back in negative territory (at almost -0.05%) and equivalent US yields down to about 2.45%, their lowest level since early April. There was though, again, little enough change in the major currency pairs, with the euro still trading in and around the $1.12 level against the dollar and the pound still at about $1.3050 against the US currency and at just under 86p against the euro

The European Commission has again lowered its forecasts for GDP growth in the Euro Area this year albeit this time just a  touch to 1.2% (from 1.3% previously), though it does expect the pace of activity to pick up to 1.5% in 2020

Retail sales in the UK were solid in April according to the British Retail Consortium, increasing on a like- for-like basis  by 3.7% year-on-year (with the timing of Easter this year probably  boosting spending last month). Separately, Halifax reports a 5% annual increase in house prices over the three months to April

Theresa May’s deputy has confirmed that the UK will take part in this month’s European Parliament elections, admitting that a Brexit deal will not be agreed and approved in Parliament in tIme to avoid having to do so

It’s quiet on the data front today with really nothing of note scheduled for release