Equity Markets Take Time to Reflect

Global markets paused as a number of countries celebrate Easter. Economic data out of Asia disappointed as PMI from China undershot estimates. The Yen strengthened against all major currencies as investors continue to wait for signs of economic improvement. As the earnings season for Q1 begins we may start to see signs of companies relishing in the cheaper local currency, however for now there seems to be little indicating this first round of QE has had much of an impact.

Elsewhere, the U.S. manufacturing data came short of analysts expectations as economic improvements showed how fragile they actually are. As fiscal cuts begin to bite, consumer demand may halter slightly during the mid part of this year.

The recovery in China is there, however not at the level many would hope for, commodity prices have fallen off somewhat amid fears of falling demand. China is one of Japan's largest export market and it fails to instill confidence that economic recovery will be driven from foreign demand.

A lot of data out again this week, Draghi is due to speak on Thursday after the ECB rate decision and much light will be shed on the state of the Eurozone's economy following the issues with Cyprus. Furthermore, the BoE are due to announce possible further quantitative easing on Thursday as George Osbourne failed to inspire during the Budget a fortnight ago.

Certainly an interesting time for equity markets, as the clocks go forward in the U.K everyone awaits the hopefully prosperous and sunny summer ahead.