ECB to decide interest rate

This week, the market will focus largely on the interest rate decisions to be announced by the Bank of England (BOE) and the European Central Bank (ECB).

In the UK, the market expects rates to remain unchanged as the BOE makes its announcement at the end of its Monetary Policy Committee meeting on Thursday. Of further interest in the UK will be the Services Purchasing Managers Index (PMI) for April, and the Industrial Production (IP) and Manufacturing Data, both for March. Finally, the Nationwide Consumer Confidence report for April will complete the picture in the UK.

Similar to the UK, the market does not expect any rate changes after the ECB's meeting, also to be held on Thursday. Other important data to be issued in the Eurozone will include the Services PMI for April and the Producers Price Index (PPI) figures for March.

The March Retail Sales figures for the Euroland will also be released. Finally, several indicators for the individual economies are also expected this week. These will include survey data for the four major economies, IP figures for Germany, France and Spain, trade balance figures for Germany, Italy and France, and Spanish consumer confidence and unemployment.

This will be a relatively quiet week for the US. The pending home sales report for March will provide indications on the state of the housing market. We shall also have the non-manufacturing ISM survey and the consumer credit report for April and March respectively.

The Initial Jobless Claims figure is also on schedule this week, with the ABC Consumer confidence report. Finally, the trade balance data and the wholesale inventories figures, both for March, will wrap up the week.

This article has been prepared by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the bank to acquire or sell securities, nor does it constitute any form of advice by the bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise