PA Market Report: Overview (May 03 – May 07) & Upcoming Events May’21

May 03 :

Manufacturing PMI at 60.7%; April 2021 Manufacturing ISM Report On Business (USA)

Economic activity in the manufacturing sector grew in April, with the overall economy notching an 11th consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®. The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The April Manufacturing PMI® registered 60.7 percent, a decrease of 4 percentage points from the March reading of 64.7 percent.

May 04 :

Statement by Philip Lowe, Governor: Monetary Policy Decision (Australia)

At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program. The global economy is continuing to recover from the pandemic and the outlook is for strong growth this year and next. The recovery remains uneven, though, and some countries are yet to contain the virus.

Very little in the way of notable news for the pullback in equity markets (Global)

Very little in the way of notable news for the pullback in equity markets

  • However, the move lower in stocks has prompted high beta FX (AUD, NZD) to extend losses, particularly against JPY as cross-JPY drops to session lows

Yellen: Rates may have to rise to stop economy overheating (USA)


May 05:

Labour market statistics: March 2021 quarter (Newzealand)

Key facts: In the March 2021 quarter, compared with the December 2020 quarter: The unemployment rate fell to 4.7 percent. The Underutilisation rate rose to 12.2 percent. The employment rate rose to 67.1 percent. In the year to the March 2021 quarter: Wage rates increased 1.6 percent. Average weekly earnings (for full-time equivalent employees (FTEs), including overtime) increased to $1,328.43. Average ordinary time hourly earnings rose to $34.52.

May 06 :

Monetary Policy Report – May 2021 (UK)

Covid has hit spending, incomes and jobs in the UK. It has put a big strain on UK businesses’ cash flow, and is threatening the livelihoods of many people. Our job is to ensure inflation (the pace of price rises) returns to our 2% target sustainably. Low and stable inflation supports jobs and growth and helps people plan for the future. In response to the Covid pandemic, we have taken prompt and substantial action to help households and businesses.

Bailey: Slowdown in asset purchases does not signal change in monetary policy stance (UK)


May 07:

Statement on Monetary Policy May 2021 (Australia)

Strong global growth is expected this year and next as the global economy recovers from the pandemic. Vaccine supply is increasing, which is allowing some economies to ease restrictions and open up. Substantial policy stimulus is also supporting the recovery. But the recovery is expected to remain uneven. Many economies are contending with serious new virus outbreaks and the outlook for some emerging market economies is clouded by slow rollouts of vaccines and limited scope for expansionary fiscal policy.

ECB Kazaks: Decision to Slow Bond-Buying Possible in June (Euro Zone)

ECB’s Kazaks: Decision To Slow Bond Buying Possible In June
We Will Not React To All Increases In Market Rates
Premature To Talk About Exiting Pandemic Program
Would Discuss Boosting APP After PEPP If Inflation Weak

The Employment Situation — April 2021 (USA)

Total nonfarm payroll employment rose by 266,000 in April, and the unemployment rate was little changed at 6.1 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains in leisure and hospitality, other services, and local government education were partially offset by employment declines in temporary help services and in couriers and messengers. This news release presents statistics from two monthly surveys.

Upcoming Events:

May 10

Retail Sales m/m

May 11

  • Annual Budget Release
  • BOE Gov Bailey Speaks

May 12

  • Prelim GDP q/q
  • EU Economic Forecasts
  • BOE Gov Bailey Speaks
  • CPI m/m
  • Core CPI m/m
  • Crude Oil Inventories
  • 10-y Bond Auction

May 13

  • Unemployment Claims
  • BOC Gov Macklem Speaks
  • BOE Gov Bailey Speaks
  • 30-y Bond Auction

May 14

  • Core Retail Sales m/m
  • Retail Sales m/m
  • Industrial Production m/m
  • Prelim UoM Consumer Sentiment
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