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12:39 · 15 August 2019

Instant view: US Retail Sales

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Data:

US Retail Sales M/M: +0.7% vs +0.3% exp. 0.3% prior

Core Retail Sales M/M: +1.0% vs +0.4% exp. +0.3% prior 

Philly Fed manufacturing index: 16.8 vs 10.1 exp. 21.8 prior

Empire Fed manufacturing index: 4.8 vs 2.1 exp. 4.3 prior

 

A plethora of data from the US has painted a better than expected picture for the world’s largest economy with both consumer spending metrics and manufacturing figures beating consensus forecasts. The market reaction has been in keeping with what you’d expect as US bond yields have ticked higher alongside stock indices and the US dollar while Gold has dropped back towards its lowest level of the day.   

 

Some strong moves in the past hour or so before the economic release have possibly stolen this data’s thunder with positive trade news crossing the wires. Reports from Beijing claimed that Xi and Trump are in touch via meetings, phone and letters. This caused a swift rally in US benchmarks with the S&P500 jumping over 50 points, while US bonds and Gold fell back. 

 

On the whole, this suggests that the market is far more sensitive to trade developments than to economic data at present, and therefore traders should keep a keen eye on this front.  

US Indices have received two positive pieces of news in the past hour or so with upbeat remarks on trade and a better than expected set of data releases. Source: xStation  

 

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