PPI input +3.6% q/q
- prior 1.1%
PPI output +2.6% q/q
- prior 1.4%
more to come
The report is due at 0130GMT.
snapshot (below) is from the ForexLive economic data calendar, access
Westpac are looking for a below-consensus headline result:
The Canadian government has announced that China has lifted its restrictions on Canadian canola.
The ban had been in place for around 3 years – a three-year-old trade dispute. Market access for two Canadian canola companies has been reinstated.
Info via Canadian media reporting.Full Article
The narrative has shifted for equity market losses, from at first being about rising interest rates and tightening financial conditions, to now being also about growth/earnings worries as inflation erodes spending power and profits.
This via Reuters with updated JPM forecasts showing slower growth expected ahead:
JPM say there may be enough of a growth slowdown to lead to a gradual increase in the unemployment rate later in 2023, this will alleviate some of the wage pressures that have been building.
“In short, we forecast a soft landing, but are well aware that this outcome has rarely (if ever) occurred,”
SPX (weekly candles):Full Article
Deutsche Bank with their latest SP500 forecast, says it’ll fall to 3,650
DB says that if the labour market can hold up and growth is not hit too hard then they see a year-end rally to 4,700 / 4,800
Weekly S&P500 candles:Full Article
bank trade ideas, check
out eFX Plus.
TD maintains a bullish bias on the USD through Q2
(ps. The wall of worry came out the winner on Wednesday US time)Full Article
Via a Wells Fargo note issued Wednesday (US time):
Wells Fargo revised their year-end GDP target for 2022 to 1.5% (down from 2.2%)
Goldman Sachs has cut its forecast for 2022 China GDP to 4% from 4.5% y/y
Goldman Sachs says it assumes:
The Chinese government’s forecast for GDP growth this year is ‘around 5.5%’
ps. Love this from GS a little further on in the note. The economists at GS say the government could hit its growth target if it uses “statistical smoothing.”
This is worth a shot. The next time you come home drunk tell your wife you are not drunk when its ‘statistically smoothed’.
(please excuse my gender specificity, I’ll go stand in the naughty corner for a while)Full Article
Its a busy economic calendar coming up on Thursday 19 May 2022 from Asia. New Zealand budget and the Australian labour market report are the focus.
From Australia yesterday we had wages data for Q1. This came in under the central estimate and had led to expectations of a 40bp cash rate hike from the Reserve Bank of Australia at their next meeting (June 7) being trimmed back.
While ANZ is looking for 25bps some analysts are sticking with their call for 40bps (JP Morgan, for example).
snapshot from the ForexLive economic data calendar, access
times in the left-most column are GMT.
numbers in the right-most column are the ‘prior’ (previous month)
number in the column next to that, where is a number, is the
consensus median expected.
The major US indices are all closing sharply lower as concerns about the economy and inflation way on values.
Target announced earnings before the open and they came in much weaker than expected as higher costs are starting to eat into the margins. The stock is ending the day down $53.55 or -24.87%. Ouch.
If transportation/employee costs are hurting Target, a company like Amazon must be really feeling the pinch. It’s shares are down $-164 today or -7.12%.
A look at the final numbers are showing:
None of the Dow 30 stocks closed positive on the day:
Verizon was the best performer at -0.14%
Other big losers on the day included:
After the close, Cisco Systems announce their earnings and revenues for the current quarter. Earnings-per-share came in at $0.87 vs. 86% estimate. Revenues came in at $12.84 billion which was lower than the $13.34 billion estimate. The stock is trading down over 11% in after-hours trading.
“When sorrows come, they come not single spies, but in battalions” – Claudius in HamletFull Article
Patrick Harker, president and CEO of the Federal Reserve Bank of Philadelphia
more to come
50bps at the next two meetings is being repeated by many Fed officials.Full Article