Markets are being driven by a mix of events and news. China's economic recovery seems to be on track, as the GDP for the first quarter of 2023 grew by 4.5%, more than analysts had expected. However, industrial production growth was slightly lower than expected, while retail sales rose 10.6% in March, surpassing predictions of 7.4%. In the US, investors are awaiting corporate earnings, particularly from streaming giant Netflix, which is expected to have added two million subscribers in the first quarter of 2023. Futures have edged higher, although some caution remains. UK unemployment rose to 3.8% in February, its highest level since the second quarter of 2022.
However, annual pay growth was at 5.9% for the same period, showing that the country's labour market may be loosening. Finally, oil prices have retreated despite strong Chinese GDP growth data, with U.S. crude futures down 0.3% and the Brent contract dropping 0.3% as well. Both benchmarks remain up by over 16% for the month of April. The International Energy Agency has forecast record demand in 2023 based on the Chinese economic recovery, among other factors.
