Danilo Maroni shows us the day ahead.

As a result, Friday’s close at Wall Street will be a sharply lower one across Europe as central banks begin a busy week. This follows a turbulent April that was dominated by worries about global slowing growth.

Amazon shares fell by disappointing numbers (NASDAQ:), fueling fears that Amazon’s biggest economy may be slowing. This comes just one day after an unexpected drop in the first quarter U.S. gross domestic product.

However, the Federal Reserve does not appear to be easing off of its tightening plans. A 50 basis points interest rate hike on Wednesday looks a done deal with the key issue being how hawkish will Powell be in the Q&A session.

Analysts say that there’s not much to be surprised by the hawkish-leaning side. A total of 250 basis point is already priced into money markets for late 2023.

The ten-year Treasury yields climbed first thing Monday morning after registering the biggest gain since 2009. This was further increasing its advantage over dividend yields. A basket of currencies also saw dollar gains after April, which was its most successful month since 2015.

The BoE, which will likely raise its rate by 25 basis points, will be following suit in central banking. This is the fourth consecutive increase.

Tuesday activity could slow down as London and other Asian markets are closed for holidays. While futures on European indices dropped more than 1 percent, U.S. derivatives showed that they would bounce back in Nasdaq after falling to 13-month lows.

In the meantime, China was still worried about slowing economic growth. As a result, oil prices fell 1%, offset by supply-stress risks from possible EU sanctions on Russian crude.

Morning bid https://fingfx.thomsonreuters.com/gfx/mkt/mypmnyxrmvr/Morning%20bid.PNG

Markets should be more informed by key developments on Monday

HSBC’s largest shareholder is calling for the Bank to dissolve, a source close to the matter stated on Friday.

Japan’s manufacturing activity declined from April to April due to disruptions in supply chains and Chinese coronavirus lockdowns that hurt overseas demand.

Two EU diplomats stated that the EU is moving toward an import ban for Russian oil before the end of this year. They spoke after meetings between EU member countries and the European Commission.

China’s services industry activity shrank for the second month in a row, according to an official survey. The result comes as many major cities are paralyzed by COVID-19 lockdowns.

German retail sales dropped unexpectedly in March due to the price rises caused by war in Ukraine

Eurozone Economic Climate/Business Sentiment Indexes

US ISM Manufacturing PMI

US earnings: Moody’s, Logitech (NASDAQ)