UK manufacturing optimism highest since 1973; Lagarde says eurozone still ‘on crutches’ – business live
Rolling coverage of the latest economic and financial news
- Latest: Lagarde says eurozone still crossing bridge of pandemic
- Too early to slow bond purchases, she says
- Lagarde welcomes Green’s Baerbock
- CBI’s business optimism gauge highest since 1973:
Earlir:
- Credit Suisse posts 757m Swiss franc loss after Archegos
- CEO Thomas Gottstein: unacceptable loss
- Swiss regulator starts enforcement proceedings
Another piece of encouraging data from earlier – eurozone consumer confidence has hit its highest level since the pandemic began.
The index rose to -8.1 this month, up from -10.8, suggesting that Europeans are more upbeat about prospects for 2021.
Eurozone April Consumer Confidence Report – EChttps://t.co/CNFUkr4Qw9 pic.twitter.com/jeHNeyCB6q
The surprising jump in consumer confidence is actually more noteworthy than any action at the ECB meeting this afternoon.
The increase from -10.8 to -8.1 in April reveals an optimistic consumer that finally sees light at the end of the tunnel. This is the highest reading since February last year, marking the best reading since the start of the pandemic. It far surpasses the levels seen in the summer of last year when reopenings led to only modest improvements in confidence, indicating that consumers really feel close to the end of things.
The increase in eurozone confidence in April reveals an optimistic consumer that finally sees light at the end of the tunnel, writes @BertColijnhttps://t.co/K0W1HTBthA
European stock markets have ended the day higher.
In London, the FTSE 100 index gained 42 points, or 0.6%, to finish at 6938.
Live Market Update from the CMC dealing desk – European Closing Prices:#FTSE 6938.24 0.62%#DAX 15320.52 0.82%#CAC 6267.28 0.91%#MIB 24398.41 0.98%#IBEX 8656.8 1.61%
Prices are indicative only. $FTSE $DAX $CAC $IBEX
Falling infection rates in Europe, a vaccination take-up in over 50’s of 95% in England and signs consumers here have remembered how to spend on the high street won’t harm that sentiment at all.
“But there have been other factors at play today. The global shortage of microchips is having a tangible impact on the automotive sector and Wall Street will be paying close attention when Intel updates markets later, hoping for further guidance on how quickly manufacturers can adapt.
Scoop: Jaguar Land Rover to suspend work at major UK car plants amid computer chip shortage. Castle Bromwich and Halewood to stop production for a week at least https://t.co/5FsOyLPGIa
“Jaguar Land Rover is no means the only car manufacturer to be affected by the global shortage of semiconductors. Most other major car manufacturers have already announced production slowdowns.
“The main reason for the shortage is a significant increase in demand for semiconductors during the pandemic, partly due to increased sales of consumer tech, such as tablets and gaming hardware as well as the growing requirement for battery electric vehicles. The global market for semiconductors is now estimated to have a value of $433bn, and further growth of 8.4% is forecast this year.
