The Monday note - 8 May 2017

• The FTSE 100 index increased by over 93 points last week to close at 7,297.4, thanks to robust economic data. Ten year Gilt yields softened to 1.12%. 
• The unemployment rate in the US fell to just 4.4% in April, its lowest level since May 2007. Last month saw 211,000 jobs created in America, up from 79,000 in March. 
• The PMI business activity index for UK services firms increased to 55.8 in April, up from 55.0 in March. A figure of over 50.0 suggests growth. 
• GDP in the Eurozone expanded by 0.5% quarter-on-quarter, or 2.0% on an annualised basis, in Q1 2017 – outperforming both the US and UK. 

Chief Economist comments: 

The populist voter rebellion has lost momentum in 2017. First the Party for Freedom polled worse than expected in the Dutch general election. Now centrist candidate, Emmanuel Macron, has beaten Marine Le Pen to become France’s next President. The financial markets will approve of this comeback for liberalism, and hopefully Brexit hardliners in the UK and Tea Party types in the US might start to lose influence in governing circles. Reduced political risks could lead to a more stable environment for businesses to invest, allowing the global economy to build upon the growth momentum we have seen lately.