- Mixed data from the United States
- Chinese manufacturing PMI moves back below 50 pts
- Significant drop in European inflation figures
US - Mixed data to say the least
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Open account Try demo Download mobile app Download mobile appThe US data released this week was a bit mixed. On one hand, we were offered CB consumer sentiment print for May that jumped from to the highest level since November 2018. On the other, regional manufacturing indices and pending home sales missed expectations. The revised GDP report for Q1 2019 showed better consumption and weaker price growth than estimated earlier. In turn, market were worried what will April’s PCE reading show. The reading was released on Friday and showed a decent 1.6% YoY pace of price growth. The overall picture of the US data released this week is mixed but next week’s prints - ISMs and NFP - should offer more insight into the condition of the US economy.
Mixed data and the opening of a new chapter in US-Mexico trade relations caused S&P 500 (US500) to break below the 200-session moving average for the first time since 7 March. Source: xStation5
Asia - Chinese manufacturing PMI moves back below 50 pts
Among readings from Asian economies scheduled for this week, one could find Chinese PMI indices for May. The reading was closely watched as the manufacturing gauge somewhat unexpectedly jumped back above the 50 pts threshold in March. Nevertheless, Friday’s release showed a reading of 49.4 pts signalling that moods within the sector still hint at contraction. Elsewhere, Japanese industrial production jumped 0.6% MoM in April and it was one of just a few Asian prints that surprised to the upside.
Europe - Significant drop in inflation figures
There were no key readings for the whole eurozone scheduled for release this week. However, some EU member countries submitted their preliminary CPI readings for May. Data prints from Italy, Spain, France and Germany saw pace of price growth slow in May and such an outcome does not bode well for the European CPI print scheduled for next Tuesday (10:00 am BST). A streak of downbeat German data (retail sales, inflation and employment) exerted additional pressure on DE30 and common currency.
CPI inflation in EU member countries slowed significantly in May. Such an outcome gives ECB little room to maneuver during the next meeting (6 June, 12:45 pm BST). Source: xStation5
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