The second week of May brought slight increases of European stock indices – German DAX grew by 0.8%, French CAC40 rose by 0.4% and British FTSE250 went up symbolically by 0.01%. In the first part of the week investors learnt data from major European economies. Nonetheless, most of them failed. The dynamic of the industrial production in the Eurozone disappointed investors as well – it stood at 0.2% y/y vs 1% expected.

Certainly, the first week of May was not successful for investors. In the US, the NASDAQ decreased by 0.8%, the S&P500 fell by 0.4% and the DJI deteriorated by 0.2%. In Europe, French CAC40 went down by 2.9%, German DAX  declined by 1.7% and British FTSE250 dropped by 0.9%. Last week data from the US economy was in the spotlight, especially from the labor market. Generally, they did not fail. Nonetheless, the reading of the nonfarm payrolls change disappointed investors. It stood at 160.00K in April vs 208.00K in March. On the other hand, it is worth reiterating that the unemployment rate amounted to 5% - the level was close to the natural unemployment rate.

Last week global stock exchanges were dominated by bears. In the US, the NASDAQ went down by 2.7%, while the S&P500 and the DJI decreased by 1.3%. In Europe, German DAX declined by 3.2%, French CAC40 fell by 3.1% and British FTSE250 deteriorated by 0.4%. Investors focused on data from the US.

Last week the meeting of the ECB’s Governing Council was in the spotlight. This time the representatives of the ECB did not surprise investors – interest rates remained at the current level and the scope of the QE was not change. During the conference Mario Draghi reiterated that the inflation rate accelerated. On the other hand, he paid special attention to the ECB’s readiness to continue expansionary monetary policy until the price growth stabilizes. As a result, the ECB did not significantly affect market sentiment. Investors also learnt the values of the PMI’s for the Eurozone.

Last week global stock exchanges entered bull – market territory after three negative weeks in a row. In the US, the DJI and the NASDAQ rose by 1.8% and the S&P500 increased by 1.6%. In Europe, German DAX and French CAC40 went up by 4.5%. Slightly worse result was reached by British FTSE250 – the index soared by 0.5%. Among of many economic data readings in the US, the publications of the CPI and the PPI should be distinguished. The former amounted to 0.9% y/y and the latter -0.1% y/y. The indices were lower than the market expectations. Moreover, the low levels of the price growth could have confirmed a dovish FOMC’s attitude.