Preliminary data from University of Michigan for April was the sole noteworthy release from the United States scheduled for today. Report was released at 3:00 pm BST and showed a big miss in both Current Conditions and Expectations subindices. As a result, headline Consumer Sentiment index missed expectations by a huge margin, coming in at 59.1. Looking for positives, one can say that 1-year inflation expectations failed to match market expectations and remained unchanged at 5.4%.
University of Michigan data for April
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Consumer Sentiment (headline): 59.1 vs 63.9 expected
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Current Conditions subindex: 63.6 vs 69.3 expected
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Expectations subindex: 56.3 vs 61.5 expected
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1-year inflation expectations: 5.4% vs 5.5% expected
Market reaction to the release was minor. The US dollar ticked lower in a knee-jerk move but it amounted to just a few pips on major currencies pairs. A lower-than-expected inflation expectations seem to have provided more support to equities. S&P 500 broke back above the 4,000 pts handle following the release.
S&P 500 jumped above 4,000 pts in a knee-jerk move following release of UoM data for April. A miss in inflation expectations seems to be playing a major role.Source: xStation5
