The ruble-based MOEX Russia held its early decline and closed 0.2% lower at 3,436 on Monday, extending the drop from the prior week, as investors continued to assess Russia’s economic outlook and the latest corporate developments. Gazprom shares dropped 1%, extending the 6% plunge from the earlier week to trade close to its lowest level since 2019 as investors continued to digest the gas giant’s pessimistic performance. The company reported its first annual loss in 20 years in 2023, as gas sales more than halved in the period, pressured by the fallout of Russia’s invasion of Ukraine and the sharp decline in business with Western countries. In the meantime, Lukoil also dropped by 1% as the increase in prices of Arab Light by Aramco was taken as another signal that Russia will extend its output cut past the second quarter. In the meantime, BSP closed 6.7% down as the stock was detached from dividends.

The CAC 40 gained 0.5% to close at 7,997 on Monday, fueled by optimism regarding looser monetary policy by the ECB and the Fed. ECB Chief Economist Philip Lane indicated in an interview with a Spanish newspaper that a June rate cut was likely, citing signs of easing services inflation. In corporate developments, Telerperformance surged by 5% as investors continued to assess the company’s outlook after posting a Q1 update above expectations last week, and supported by its acquisition of Dutch competitor Majorel. Other notable gainers included Axa, Credit Agricole, and Veolia, rising 2.5%, 1.8%, and 1.6%, respectively. Conversely, Atos shares fell 3% after initially surging around 10% at market open, following the confirmation of four distinct offers from investors aimed at restructuring its debt, coupled with a warning of potential significant share dilution.

In Milan, the FTSE MIB Index gained 270 points or 0.80 percent on Monday. Gains were led by Amplifon (5.23%), Intesa Sanpaolo (2.61%) and Pirelli (2.03%). Biggest losers were Iveco Group (-0.65%), Ferrari NV (-0.35%) and Recordati (-0.30%).

In Frankfurt, the DAX Index went up by 182 points or 1.01 percent on Monday. Top gainers were Zalando (2.39%), Infineon (2.12%) and Munich RE (2.06%).

In Paris, the CAC 40 Index rose 58 points or 0.72 percent on Monday. Leading the gains are Teleperformance SE (5.52%), WorldLine (2.96%) and AXA (2.40%). Top losers were Essilor (-1.66%), Edenred (-1.21%) and Eurofins Scientific SE (-0.56%).

Stocks in Europe closed firmly higher on Monday, gaining traction following sharp losses in the prior week as markets continued to benefit from expectations of incoming rate cuts by key central banks. The Stoxx 50 index added 0.7% to close at 4,956, and the broader Stoxx 600 jumped 0.5% to 508. Chief ECB economist Philip Lane noted that recent data have made him more certain that inflation is returning to the 2% goal, aligned with market expectations of the central bank’s first interest-rate cut in June. Financial stocks led the gains on the corporate front, with AXA jumping by nearly 3% as markets continued to assess the insurer's first-quarter corporate results. Intesa Sanpaolo and Munich Re were close behind with 2.7% increases. Outside the Stoxx 50, Indra jumped more than 10% after reporting a 40% rise in Q1 profit and Volvo also gained almost 1% after booking a sales rise in April.

The DAX index surged over 1% to reach 18,201 on Monday, marking a four-week high driven by a 2.4% increase in Zalando's share price. Infineon, Munich RE, and Deutsche Bank also saw gains of around 2%. Large-cap stocks performed well, with Allianz rising by 1.6%, followed by Airbus (+1.4%) and Siemens (+0.9%). SAP and Deutsche Telekom ended the day slightly higher as well. Investor confidence was bolstered by speculation that the Federal Reserve would soon implement interest rate cuts following disappointing jobs data. ECB Chief Economist Philip Lane's remarks in a Spanish newspaper interview, indicating confidence in reaching the 2% inflation target and the possibility of an ECB interest rate cut in June, further lifted sentiment. Additionally, revised PMI data for Germany confirmed robust growth in the services sector in April and a rebound in private sector activity, returning to growth after ten months of decline.

The S&P/TSX Composite index rose by 0.7% to surpass the 22,100 mark on Monday, extending its third consecutive session of gains, as the resource-heavy index was lifted by increasing commodity prices. The energy sector saw an average increase of 1.2%, with Cenovus leading the rise with a 1.5% gain in its shares, followed by Suncor with a 1.3% increase, and Canadian Natural rising by 1.2%, buoyed by climbing oil benchmarks. Moreover, with expectations of a September interest rate cut by the US Fed, bullion prices rebounded from a near one-month low, benefiting heavyweight mining companies like Wheaton Precious Metals, Barrick Gold, and Agnico Eagle Mines, which saw gains of 2.1%, 2%, and 1.8% respectively.

US stocks kicked off the week in the green, with the S&P 500 and Nasdaq adding around 0.5%, extending the previous session rally, after softer labour data strengthened confidence the Fed will soon start cutting interest rates. The odds for an ease in September currently stand at around 68%. Meanwhile, attention will turn to appearances from some Fed officials this week for further clarification on when the rate reductions will occur. Also, the earnings season continues with Walt Disney and Uber due to report quarterly results during the week. Energy, industrials and materials were the top performing sectors. Nvidia was up 1.3%,Tesla gained more than 2% and Exxon Mobil 1%. Berkshire Hathaway rose nearly 0.7% after the company reported a nearly 40% annual rise in operating earnings.

The BSE index pared some initial gains to close virtually unchanged at 73,895.5 on Monday, following slight gains in the previous week. Ongoing concerns regarding overvaluation and mixed Q4 earnings reports seemed to have weighed on market sentiment, despite positive global indicators stemming from expectations of interest rate cuts by the Federal Reserve. Meanwhile, a private business survey showed growth in India’s dominant services sector slowed marginally in April, but remained robust. Among single stocks, Kotak Mahindra Bank surged 5% after reporting a jump of 26% yoy in its profit for Q4 of FY24. Other top gainers included TCS and Hindustan Unilever, up 2.1% and 1.8%, respectively. On the opposite side, Titan shares tanked 7.2%, after Q4 profit misses analysts' expectations.

Stock futures in the US were higher on Monday, with contracts on the three major averages adding about 0.3%, extending strong gains from the previous session, after softer labour data strengthened confidence the Fed will soon start cutting interest rates. The odds for an ease in September currently stand at around 70%. Meanwhile, attention will turn to appearances from some Fed officials this week for further clarification on when the rate reductions will occur. On the corporate front, the earnings seasn continues with Walt Disney and Uber due to report quarterly results. Microsoft, Nvidia and Meta were in the green in premarket trading and Berkshire Hathaway gained about 1% after the company reported a nearly 40% annual rise in operating earnings.

The yield on the US 10-year Treasury note was around 4.5%, the lowest level in about a month, after a softer-than-expected labour data revived bets the Fed will start cutting interest rates soon. The odds for an ease in September currently stand at around 70%, much higher than about 57% the week before. Last week, the jobs report showed the economy added fewer jobs than anticipated, the unemployment rate edged up and wage growth slowed. The Fed also kept the fed funds rate steady as expected and set a less hawkish tone. Traders will now focus on comments from several Fed officials due this week for some more clues on when the first reduction in the fed funds rate will happen. However, the week will be calmer on the economic data front.

India 10 Year Government Bond Yield decreased to a 4-week low of 7.11%. Over the past 4 weeks, India 10Y Bond Yield lost 4.00 basis points, and in the last 12 months, it increased 6.70 basis points.

Industrial producer prices in the Euro Area decreased by 7.8% year-on-year in March 2024, following a revised 8.5% drop recorded in the preceding month, compared with market expectations of a 7.7% decline. Energy prices declined by 20%, after a 21.3% decrease the previous month, while costs for intermediate goods went down by 4.8%, easing from a 5.3% fall. Meanwhile, inflation slowed for capital goods (1.9% vs 2.0%), durables (1.0% vs 1.2%), and non-durables (0.9% vs 1.3%). Excluding energy, producer prices dropped by 1.3%, the same as in February. On a monthly basis, producer prices declined by 0.4%, in line with market expectations.

Industrial producer prices in the Euro Area decreased by 0.4% from the previous month in March 2024, in line with forecasts after a revised 1.1% fall in February. It was the fifth consecutive monthly decline, driven by a continued drop in energy costs (-1.8% vs -3.6% in February). Also, prices eased for capital goods (0.1% vs 0.2%) and durable consumer goods (0.1% vs 0.4%). On the other hand, cost advanced faster for intermediate goods (0.1% vs a flat reading in February) and non-durable consumer goods (0.4% vs 0.1%). Excluding energy, producer prices rose 0.2%, following a 0.1% increase in February. On a yearly basis, producer prices declined by 7.8%, compared with market expectations of a 7.7% decrease.

The ruble-based MOEX Russia edged 0.3% lower to the 3,430 mark on Monday, extending the drop from the prior week as investors continued to assess Russia’s economic outlook and the latest corporate developments. Gazprom shares were broadly flat, holding the 6% plunge from the earlier week to trade close to its lowest level since 2019 as investors continued to digest the gas giant’s pessimistic performance. The company reported its first annual loss in 20 years in 2023, as gas sales more than halved in the period, pressured by the fallout of Russia’s invasion of Ukraine and the sharp decline in business with Western countries. In the meantime, Lukoil dropped by nearly 2% as the increase in prices of Arab Light by Aramco was taken as another signal that Russia will extend its output cut past the second quarter. In the meantime, BSP traded 7% down as the stock was detached from dividends.

The CAC 40 rose 0.24% to 7,977 on Monday, driven by optimism over potential Fed rate cuts reignited by the softer-than-expected U.S. jobs report. Moreover, ECB Chief Economist Philip Lane remarked in an interview with a Spanish newspaper that the June rate cut was likely, as services inflation appeared to be showing signs of easing. Among single stocks, Telerperformance saw a notable increase of nearly 4% to the index, after the company posted Q1 update above expectations, bolstered by its acquisition of Dutch competitor Majorel. Conversely, Atos shares were down approximately 1.5% after jumping around 10% at market open, as the company confirmed receipt of four distinct offers from investors aimed at restructuring its debt, alongside a warning of potential significant share dilution. Domestically, the French economic indicators showed positive growth, with both the Composite PMI and Services PMI surpassing expectations and previous readings.

The FTSE MIB added 0.6% to trade around the 33,850 mark on Monday, mirroring the performance of its European peers, as investor confidence in global interest rate cuts drove optimism. On the corporate front, the Italian financial sector performed well, with Intesa Sanpaolo leading the pack with a rise of approximately 2.5%. Following its quarterly results announcement last Friday, the lending giant received positive feedback from analysts. Petrochemical companies also saw strong gains, especially Saipem (+1.9%), Tenaris (+1.9%), and Eni (+0.8%), buoyed by Saudi Arabia's increase in June crude prices for most regions and dim prospects for a Gaza ceasefire deal. Conversely, Amplifon experienced the most significant decline, dropping 1% so far.

Taiwan’s foreign exchange reserves decreased to USD 567.01 billion in April 2024 from USD 568.1 billion in the previous month. This was the smallest amount since October 2023, influenced by returns from foreign exchange reserves management and exchange rate movements of other reserve currencies against the USD. Moreover, the central bank stepped in to smooth out volatile capital flows to maintain an orderly foreign exchange market. In April 2023, the reserves stood at USD 561.12 billion.

The HCOB Eurozone Services PMI increased to 53.3 in April, marking the strongest growth in nearly a year, surpassing the initial estimate of 52.9 and up from 51.5 in March. Increased demand was a primary factor in the higher output, with new business volumes expanding at the fastest rate since May of the previous year. This surge in sales resulted in an uptick in backlogs of work for the first time in ten months, however, the accumulation was only marginal. With rising new business and capacity constraints, employment grew at an accelerated pace, reaching levels not seen since mid-2023. Although business confidence dipped slightly from its recent peak, it remained strong overall and aligned with historical averages. Price pressures in the eurozone services sector increased mildly, with input costs rising slightly from an eight-month low in March. Output charges also saw a modest uptick.

The Hang Seng rose 102.38 points or 0.55% to end at 18,578.30 on Monday, increasing for the 10th session which was the longest winning streak since 2018, supported by a rally in Chinese stocks on their return from a holiday amid a combination of earnings recovery, cheap valuations, and signs of new policy support from Beijing to ease a prolonged property crisis. Markets held their highest level in eight months after private survey data showed service activity in the mainland rose for the 16th month last month despite some cost pressure. In addition, private sector activity in Hong Kong continued to grow for the second month. Meanwhile, US futures increased modestly after US job growth slowed more than expected in Apri, and the Fed kept a window open for rate cuts this year. Most sectors gained, led by tech, consumers, and financials. Some big stocks that logged solid rises were Li Auto (6.2%), Kunlun Energy Co. (4.5%), Trip.Com (4.3%), Techtronic Inds. (3.7%), and Tencent Hlds. (2.0%).

The HCOB France Services PMI increased to 51.3 in April 2024 from 48.3 in the previous month, compared to the initial estimate and market forecasts of 50.5. The latest reading pointed to the first expansion in France's services activity since May 2023. New business grew for the first time in a year and output levels also increased, amid improving demand conditions. The growth in new business added to pressures on service providers' operating capacities, leading backlogs of work to tick higher. Consequently, firms raised employment levels for the fortieth month, with jobs growth accelerating to a nine-month high. Additionally, input cost inflation eased, hitting its lowest level since August 2021. However, output charges rose at a faster pace, the highest in three months. Looking ahead to the next 12 months, French service providers were strongly confident of the upturn in activity being sustained.

The DAX gained about 0.2% to above the 18030 level on Monday, tracking a general positive mood in Europe, amid reviving bets the Fed will soon cut interest rates after softer-than-expected jobs data. Also, ECB Chief Economist Philip Lane said during an interview with a Spanish newspaper that recent data have made him more certain that inflation is returning to the 2% goal, raising the likelihood a first interest-rate cut by the ECB in June. Meanwhile, revised PMIs for Germany confirmed a strong growth in the services sector in April and a rebound in private sector activity with a return to growth for the first time in ten months. On the corporate front, Rheinmetall, Mercedes-Benz and VW were among the top gainers while Deutsche Post was one of the worst performers.

The HCOB Italy Services PMI edged down to 54.3 in April 2024 from 54.6 in the previous month, missing the market forecasts of 54.7. While new business maintained steady growth, albeit at a slower pace, output also moderated, though remaining solid. On the other hand, Italian service providers increased their staffing levels for the sixth consecutive month and the quickest in almost a year, citing the need to handle incoming work. Inflation-wise, pressures remained intensified, with input price inflation hitting a one-year high, driven by rising staff and fuel costs. Consequently, the rate of output charge inflation surged, reaching its strongest level since February 2023. Finally, optimism about future activity remained steady, fueled by factors such as new projects, forecasted demand and new client driving positive sentiment.

The HCOB France Composite PMI was revised upwards to 50.5 in April 2024, compared to the flash estimate of 49.9 and March's reading of 48.3. It indicated a slight uptick in private sector business activity, marking the first expansion in nearly a year, solely driven by the services sector (PMI at 51.3 vs 48.3 in March). Conversely, manufacturing activity contracted further (PMI at 45.3 vs 46.2). Aggregate new orders approached stabilization in April, falling only marginally and at the weakest rate in 12 months. Simultaneously, the overall rate of job creation hit a ten-month high, buoyed by robust recruitment in the services sector. Meanwhile, price pressures intensified across France in April, with rates of input cost and output charge inflation quickening to five- and three-month highs, respectively. Looking forward, business sentiment retained its strong positivity.

The HCOB Germany Composite PMI rose to 50.6 in April of 2024 from 47.7 in the previous month, ahead of market expectations of 48.6 and revised higher from the preliminary estimate of 50.5. It was the first month of expansion in the German private-sector activity following nine straight contractions, pointing to some traction and spurring hopes that the Eurozone’s largest economy will extend its recovery from a moderate recession last year. Growth was solely driven by the fastest expansion for service providers in a year (53.2 vs 50.1 in March), while the decline for manufacturers slowed but remained sharp (42.5 vs 41.9). New orders continued to drop at the aggregate pace due to sluggish demand for manufactured goods, although the rate of contraction fell to its slowest in 11 months. In the meantime, employment levels were broadly unchanged. Additionally, the rate of both input cost and output price inflations both ticked higher, but held close to their long-term averages.

The HCOB Germany Services PMI was at 53.2 in April 2024, slightly below initial estimates of 53.3, but continuing to point to the strongest growth in the services sector since June 2023. The upturn was supported by new business, namely domestic-driven while new work from abroad fell further. In turn, it contributed to a pick-up in the pace of job creation as backlogs of work accumulated across the sector. Activity was expected to continue rising in the year ahead. At the same time, the survey signaled stubbornly high inflationary pressures across the services economy. Both input costs and output prices increased at rates well above their respective historical averages, albeit with the former posting the slowest rise for six months.

The HCOB Italy Composite PMI fell to 52.6 in April of 2024 from the 11-month high of 53.5 in March, pointing to a slight slowdown in the pace of expansion for the Italian private sector. The downtick was a result of a downturn in activity among manufacturers (47.3 vs 50.4), enough to offset the ongoing service sector strength (54.3 vs 54.6). New orders at the aggregate level rose at a more moderate pace, again pressured by a decline for factories, but held up by sustained expansion for service providers. Still, job creation was noted for both sectors to notch the quickest increase since May 2023, increasing capacity and allowing companies to quickly deplete their work backlogs. In the meantime, firms continued to face increasing cost pressures amid continued inflation for services and the first uptick in costs for manufacturers in 15 months. The sharper rise for the former drove the steady increase in output charges.

The business confidence indicator in Thailand fell to 47.3 in April 2024 from 49.6 in the previous month. It was the lowest reading since January 2022, as sentiments deteriorated for performance (49.1 vs 53.9 in March), production (48.6 vs 53.6), and overall order books (45.3 vs 49.9). On the other hand, assessments for employment improved (51.6 vs 50.5). Meanwhile, the three-month expected business sentiment index rose to 52.4 from 51.9 in March.

Stocks in Europe were slightly higher on Monday, with both the STOXX 50 and the STOXX 600 adding about 0.1%, tracking gains in Chinese markets, amid reviving bets the Fed will soon cut interest rates after softer-than-expected jobs data. Also, ECB Chief Economist Philip Lane said during an interview with a Spanish newspaper that recent data have made him more certain that inflation is returning to the 2% goal, raising the likelihood a first interest-rate cut by the ECB in June. Meanwhile, PMI data in Europe continued to show an improvement in both services and private sector activity last month. The energy sector was among the top performers, tracking oil prices higher. On the corporate front, Spanish Indra jumped more than 10% after reporting a 40% rise in Q1 profit and Volvo also gained almost 1% after booking a sales rise in April. In contrast, Dutch PostNL lost more than 3% after a bigger-than-expected loss.