Recent 5 events and news that has significant impact on markets
What have been moving the markets recently?
Here are the recent important market events and news.
1. European consumer confidence rising
Consumer confidence in the Eurozone was seen rebounding in May.
Data from the Eurozone’s statistics agency, Eurostat showed that consumer confidence rose to the highest level in seven months after weakening in the month before.
The flash estimates showed that consumer confidence rose to -6.5 in May, compared to -7.3 in April which was a revised print from -7.9 initially.
The data for May was the highest on record since October last year.
A final and revised estimate of the Eurozone’s consumer confidence report will be coming out later in the week.
2. Japan’s GDP grows at a pace of 2.1%
Japan’s first quarter GDP rises 0.5%.
Official data showed that the gross domestic product surprised after rising 0.5% on a seasonally adjusted basis.
The data beat the forecasts of a 0.1% decline following a downward revised 0.4% quarterly GDP growth in the previous quarter.
On an annualized basis, Japan’s GDP grew at a pace of 2.1% in the year ending March 2019.
This also beat the conservative estimates which expected a 0.2% decline in the annualized GDP.
Japan’s nominal GDP was seen rising 0.8% on the quarter.
3. US Existing home sales declines
Existing home sales report from the United States showed a decline in April.
Data from the National Association of Realtors showed on Tuesday last week that existing home sales fell 0.4% on a month over month basis in April to an annualized rate of 5.19 million.
This came after new home sales fell 4.9% in March.
Total housing inventory rose to 1.83 million indicating that inventory totals were steadily improving.
4. New Zealand retail sales rises
The latest retail sales report from New Zealand saw a modestly better print than expected.
Quarterly retail sales rose 0.7% beating estimates of a 0.6% increase.
But this was comparatively lower to the Q4 retail sales print of 1.7%.
On an annualized basis, retail sales in New Zealand is up 3.3%.
Spending gains were seen across a range of categories including department stores and hardware.
That saw core (ex-fuel spending) rising by 0.7% over the quarter.
5. US durable goods orders declines
The monthly durable goods orders report from the U.S. showed a decline in April.
Official data showed that durable goods orders fell 2.1% on the month while core durable goods orders were unchanged.
The declines came amid the trade wars with China.
Non-military capital goods orders excluding aircrafts were down 0.9% following a downward revised print of a 0.3% increase in March.
Upcoming Important Economic Events
Here are upcoming main market events that investors should focus on.
Know the events beforehand and follow the market trend!
1. Bank of Canada Monetary Policy Meeting
The Bank of Canada will be holding its monetary policy meeting.
However, no changes are expected to the central bank’s interest rates which remain at 1.75%.
The Bank of Canada last hiked interest rates in September last year.
Since then, BoC’s rates have remained steady largely due to uncertainty from the trade negotiations with the U.S. and the threat of slower global economic growth.
2. US GDP revised estimates
Economic data from the U.S. is expected to be busy after a somewhat slow start to the week.
The U.S. markets are closed for the Memorial Day bank holiday on Monday.
However, a number of events are lined up over the week including the GDP revised estimates and the PCE price index report.
The U.S. second revised GDP estimates for the first quarter is forecast to be revised down to 3.1% from 3.2% as reported initially.
Later in the week, the PCE price index report is expected to show that the Fed’s preferred gauge of inflation is expected to rise 0.2% on the month.
3. Australia building approvals and capex spending
Economic data from Australia this week will cover the building approvals and capex spending.
The data comes ahead of the Reserve Bank of Australia’s monetary policy meeting due in a week’s time.
Focus will be on whether or not the RBA will lower interest rates as widely speculated.
Amid the rumors, following the RBA governor’s indications that the policy makers will consider rate cuts, the building approvals report and the capex spending could shed light.
4. European Parliamentary elections
Data from the Eurozone this week will cover a mix of economic and political events.
The European Parliamentary elections are being held over the weekend.
But this is not expected to make a big impact on the euro currency.
On the economic front, French preliminary GDP reports will be coming out over the week including the preliminary inflation report from Germany and Italy.