Eurozone GDP growth was marginally firmer than expected at 0.2% for the first quarter of the year. Industrial production in the 16 nations using the euro grew 1.3% in March from a downwardly revised 0.7% increase the previous month. This was more than expected, and on a quarterly basis, output rose 4%, the most since the early 1990s.

The Spanish government announced additional spending cuts to reduce the budget deficit from around 11.2% of GDP this year to 6% in two years' time. The Portuguese government also announced budget cuts and is aiming to cut the deficit from around 8% of GDP this year to 4.6% in 2011.

The European Central Bank (ECB) announced it will buy eurozone bonds, contrary to the comments made following the previous week's ECB policy meeting.

In the US, initial jobless claims were in line with market expectations at 444,000 during the first week of May, from a revised 448,000 previously reported.

Import prices for April, rose 0.9%. The trade deficit rose to a 15-month high of $40.4 billion in March from $39.4bn in February.

Retail sales rose by a seasonally adjusted 0.4% to $366.4bn in April, the seventh straight increase and the twelfth gain in the past 13 months. This was stronger than expected and was led by strong sales at hardware stores and garden centres.

In the UK, unemployment fell more than expected with a claimant count of 27,100 in April, but the jobless rate as measured by the ILO remained unchanged at 8%.

Industrial data was substantially stronger than expected in March with a 2% increase in production. The trade deficit was weaker than expected with a goods deficit £7.5bn in March from a revised £6.3bn the previous month due to a strong increase in imports.

The Bank of England (BoE) left interest rates and also the amount of quantitative easing unchanged. In its latest inflation report, the BoE said there were downside risks to the economy while there was still a high degree of excess capacity.

The bank also said inflation was likely to be below 2% in two years' time if interest rates moved in line with market expectations.

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.