Soft Japanese Economy, Subdued Yen
Executive Summary Japan’s first quarter GDP fell less than expected, although there were some concerning elements in the details of the report. Private sector activity was particularly weak, while we note that leading indicators are consistent with a much sharper...
UK PMIs Unlikely to Rescue Pound from Mounting Risks
In Britain, the preliminary PMIs for May will hit the markets at 08:30 GMT Thursday, ahead of retail sales for April at 06:00 GMT on Friday. The PMIs are expected to rise, but to remain deep within contractionary waters, while...
Global Markets Enjoyed A ‘Full-Option Risk-On Session’ Yesterday With Equities
Markets Global markets enjoyed a ‘full-option risk-on session’ yesterday with equities, bonds and FX reacting accordingly. In weekend interviews, Fed Chair Powell highlighted the sever impact of the corona pandemic but reiterated the Fed’s commitment to support the economy. Two...
UK Jobs and CPI Data to Kick Start Busy Week for Sterling as Brexit Risks Weigh
A raft of economic data is due out of the United Kingdom this week, starting with the labour market report on Tuesday and the consumer price index on Wednesday. Both will be released at the earlier than usual time of...
The Fed Supports The Market
Last week the American market closed with a decline and failed to fully offset the drop of the beginning of the week. Futures on SP500 added 0.9% at the beginning of the week. This happens against the background of data...
UK: Keep Cautious and Carry On
Executive Summary The United Kingdom is the latest major economy to report the negative effects of COVID-19 on economic activity. Q1 GDP fell 2% quarter-over-quarter, with weakness in the services and industrial sector. In addition, March monthly GDP was very...
Weekly Economic and Financial Commentary: Q2 Likely to Be Worse for Global Economies
U.S. Review Aggregate Demand Takes a Big Hit from the Shutdowns Retail sales plummeted 16.4% in April, following an 8.3% drop the prior month. Industrial production fell 11.2% in April, with huge declines in consumer goods, business equipment and mining....
The Weekly Bottom Line: The Economic Impact of COVID-19 On Full Display
U.S. Highlights Financial markets optimism faded this week as economic data continued to show the severe damage caused by COVID-19 and social distancing protocols. Closures of non-essential businesses all around the country, coupled with mounting job losses, resulted in retail...
Forward Guidance: Canadian Consumers in Focus
Next week brings two reports that will shed some more light on how the consumer sector (more than half of Canada’s economy) has been impacted by the COVID-19 crisis. March retail sales will look a bit stale, particularly with the...
Japan Set to Enter Recession but Hope for Rebound as State of Emergency Lifted
GDP numbers out of Japan will be headlining the start of the trading week as first quarter growth estimates are published on Monday local time (Sunday, 23:50 GMT). The world’s third largest economy is expected to have contracted for the...
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