Market movers today
With May Day celebrations around the world there are few macroeconomic numbers on the agenda today.
Most important will be the US ISM numbers for the manufacturing sector. We expect ISM to have inched up to 52.2 in April – slightly more upbeat than the consensus expectations of 52.0 and up from 51.5 in March.
Dovish-leaning John Williams of the San Francisco Fed speaks today.
Selected market news
Worries about US growth are increasing, which sent US stock markets lower in yesterday’s trading. Both Dow Jones and S&P500 were down more than 1%. Nasdaq dropped 1.6% on the day. Asian stocks are also trading lower.
This morning we got a mixed bag of macroeconomic data out of Japan. The Bank of Japan will be relieved that core inflation picked up for the first time in 10 months. Core inflation for March was 2.2% y/y - slightly above the consensus expectation of 2.1% y/y. Other data showed that Japan’s unemployment rate fell to 3.4% in March from 3.5% in February, while household spending dropped 10.6% in March. The Markit/JMMA final Manufacturing Purchasing Managers Index (PMI) dropped to 49.9 in April – down from 50.3 in March.
Chinese PMI came in at 50.1 – a tad above the consensus expectation of 50.
The theme in the global markets increasingly seems to be worries about a combined slowdown in the world’s two largest economies, the US and China, and this is clearly souring the sentiment in global stock markets and has been pushing the USD weaker on the expectation that the Federal Reserve might postpone rate hikes.
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