Success for Emmanuel Macron over Marine Le Pen in the second round of France's presidential election signals stability, for now, according to Kenneth Orchard, global fixed income portfolio manager at T Rowe Price, a US global asset management firm.
The International Capital Market Association (ICMA) has a new chairman and new board members. They were voted in by members of the global trade association for cross-border bond markets at its annual general meeting in Luxembourg this week.
An unexpectedly large rebound in US jobs growth in April did little to lift markets as uncertainty over interest rates dominated investor behaviour. Data from the US Bureau of Labor Statistics showed that 211,000 jobs were created in April, up from March's disappointing 79,000 and beating analysts' expectations of around 190,000.
France's two biggest banks have this week unveiled figures that suggest their underlying business is fundamentally sound, even as concerns grow about the potential impact the result of the French election could have on the sector in the country.
Sterling climbed and the FTSE 100 rallied after the UK's dominant services sector outperformed expectations in April. The purchasing managers' index for the service sector – which represents nearly 80% of the UK's business output – rose to 55.8 in April, up from 55 in March and beating expectations of a dip back to 54.5. An index reading above 50 indicates expanding business activity.
Economic growth in the countries that share the euro rose by 0.5% in the first quarter of 2017, according to gross domestic product data from eurostat. This robust start to the year matched the rate of growth seen in the final quarter of 2016, and beat the 0.4% growth seen across the wider European Union.
Japan's yen fell to a month low against the US dollar while the euro gained against both the dollar and the yen as haven currencies were hit by a fresh wave of risk appetite. The yen fell to the Y112 against the dollar and hit its weakest level of Y122.63 against the euro since mid March.