| Asia | Singapore revised Q1 GDP up to show a 1.8% Q/Q expansion (seasonally adjusted, annualized) versus an advance estimate of a 1.4% decline. On a Y/Y basis the economy expanded 0.2%. The Ministry of Trade and Industry said “economic growth … is expected to improve gradually over the course of the year.” | Seeking Alpha |
| China | Manufacturing activity is shrinking in China as the HSBC flash PMI fell into contraction territory for the first time in seven months in May, dropping to 49.6 from 50.4 in April, missing expectations. HSBC didn’t mince words in an appeal to Beijing: “The cooling manufacturing activities in May reflected slower domestic demand and ongoing external headwinds. A sequential slowdown is likely in the middle of Q2, casting downside risk to China’s fragile growth recovery. Moreover, the further signs of labor market slackness call for more policy support. Beijing still has fiscal ammunition to do so.” | Seeking Alpha |
| China | New data suggesting contraction in Chinese manufacturing have cast further doubt about growth in the world’s No. 2 economy, hitting markets as investors worry about the implications for the global outlook. Asian markets slumped, led by a 7.3% tumble by Japan’s benchmark stock index, with commodities and currencies tied to China also taking a hit. European markets also were lower as worries over China added to other investor concerns including signs that the U.S. Federal Reserve could ease back on its efforts to inject more liquidity into the U.S. economy. Thursday’s data–a survey from HSBC Holdings PLC and Markit Economics marks the latest indication of slowing Chinese growth, following others that have prompted a number of economists to lower 2013 estimates in recent weeks. Economists had expected 2013 to show stronger growth than last year’s slower pace | WSJ |
| EU | Eurozone PMI was better than forecast at 47.8 | Bloomberg |
| EU | The preliminary Markit composite PMI for the eurozone printed at 47.7 in May which, albeit still squarely in contraction territory, is still a three-month high. Both services and manufacturing “saw an easing in the rate of decline” but employment dropped for the seventeenth straight month. Ultimately, “the eurozone’s second recession in five years looks set to drag into a seventh successive quarter,” Markit’s chief economist said. Individually, Germany’s flash PMI came in at 49.9, showing weakness across the currency bloc continues to weigh on the region’s largest economy. France’s PMI came in at 45.5 compared with a predicted 44. | Seeking Alpha |
| EU | Beppe Grillo will push for a referendum on Italy’s membership of the EUR. It is possible to call for a referendum by collecting 500,000 signatures on a petition. | Citi |
| EU | Switzerland’s AAA rating affirmed by Moody’s, outlook stable | Citi |
| EU | Eurozone Consumer Confidence -21.9 vs -21.8 exp | Bloomberg |
| U3O8 | Terrorist attacks on a uranium mine and military base in Niger have resulted in 23 reported dead. | Citi |
| UK | UK Q1 GDP data (+0.3% QoQ as in initial estimate). | Bloomberg |
| US | A market conditioned to exhibit hyper-sensitivity to Fed officials’ every utterance had a rough go of it Wednesday after Congressional testimony by Fed Chairman Ben Bernanke and minutes from the FOMC’s latest policy meeting seemed to send conflicting messages. The readily observable ideological chasm developing between regional Fed presidents regarding the proper path forward notwithstanding, observers had reason to be a bit flummoxed yesterday as the Chairman predictably cited “premature tightening” as a risk to the recovery before saying later that the Fed could begin to dial-down purchases at “one of the next few meetings.” A few hours later, investors’ mood soured markedly after the Fed minutes showed “a number of participants” are prepared to slow QE as soon as June. | Seeking Alpha |
| US | Jobless claims decreased more than forecast, falling by 23,000 to 340,000 in the week ended May 18, Labor Department figures showed. The median forecast of 50 economists surveyed by Bloomberg called for a drop to 345,000. | Citi |
| US | Government data showed sales of new homes climbed 2.3 percent to a three-month high of 454,000 homes at an annualized pace from a 444,000 rate in March that was faster than first estimated. The median estimate of 76 economists surveyed by Bloomberg called for a gain to 425,000. The median selling price rose to a record on sales of more expensive properties. A gauge of 11 homebuilders in S&P indexes jumped 1.3 percent. | Citi |
| US | Home buyers are paying more for newly built homes than they ever have, as U.S. home builders continue pushing up prices and limiting the number of properties hitting the market. The Commerce Department reported Thursday that the median price of a new home hit $271,600 in April, while the average new-home price reached $330,800, both record highs. The price gain for new homes comes amid a spring selling season—typically the most crucial time of year for builders, as families rush to buy new homes before the next school year—that has plodded along at a steady pace. Thursday’s new-home sales report showed that builders were on pace in April to sell 454,000 homes this year, up 2.3% from March and up 29% compared to the same month last year. | WSJ |
| US | The number of U.S. workers seeking new unemployment benefits fell last week by more than expected, another sign of slow improvement in the labor market. Initial jobless claims, a proxy for layoffs, decreased by 23,000 to a seasonally adjusted 340,000 in the week ended May 18, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires had forecast 345,000 new applications for last week. With the drop, a broader measure of layoffs returned to near five-year lows. The four-week moving average of claims, which smoothes week-to-week volatility, decreased by 500 to 339,500 from the previous week’s revised 340,000. Claims for the week ended May 11 were revised up to 363,000 from a previously reported 360,000. In a report earlier this month, the Labor Department said the unemploy-ment rate fell to 7.5% in April, its lowest level since 2008 | WSJ |
Filed under: World News
