Posted on: 4th June 2021 in News
Good day, this is the Holborn market recap. Let’s take a look at this week’s news in finance.
News in finance: In China, the National Bureau of Statistics (NBS) reported that the Manufacturing PMI came in at 51.0 in May. The reading showed that the manufacturing sector continued to expand with analysts at NBS noting that “the condition of the sector has continued to be better than the same period of 2019 and 2020.”
News in finance: The Reserve Bank of Australia (RBA) announced that it would keep its benchmark interest rates on hold at 0.1%. The decision was in line with economists’ expectations as the RBA’s governing board has suggested that rates would remain as they are until 2024. The RBA’s Governor Philip Lowe said that the board would decide whether it should buy more bonds in a round of government bond-buying in its next meeting.
The Swiss GDP contracted by 0.5% in the first quarter of 2021, on a quarterly basis, according to data published by the State Secretariat for Economic Affairs (SECO). Analysts at ING attributed the drop to the anti-Covid19 restriction measures implemented by the Swiss government.
The Canadian GDP increased by 5.6% on a quarterly basis in the first quarter of the year. The figure was a bit less than the 6.7% anticipated by economists. Canada’s performance during the first quarter of the year was second-best among G7 economies.
The Institute for Supply and Management (ISM) in the US reported that its manufacturing PMI came in at 61.2, while economists had been expecting a rise close to 60.7. The ISM’s accompanying report said that “the manufacturing economy continued expansion in May. Companies and suppliers continue to struggle to meet increasing levels of demand. Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy.”
News in finance: The Australian Bureau of Statistics (ABS) published data which showed that the country’s GDP expanded by 1.8% on a quarter-to-quarter basis in the first three months of the year. The reading was better than anticipated by market analysts. The Australian economy is now 0.8% larger than in the pre-pandemic era.
In Germany, the Federal Statistics Service reported that retail sales dropped by 5.5% on a monthly basis in April. The negative figure partially reversed the March 7.7% increase. The decline was attributed to the emergency measures in the second half of the month.
News in finance: Retail sales in Australia rose by 1.1% on a monthly basis in April, in line with market expectations. When compared to April 2019, retail sales are up 13.6%, according to the ABS.
IHS Markit published a report which revealed that the eurozone’s Composite PMI hit 57.1 in May, 0.2 units more than expected. The accompanying report said that “surging output growth adds to signs that the economy is rebounding strongly in the second quarter. However, May also saw record supply delays, which are constraining output growth and leaving firms unable to meet demand.”
The Markit report for the UK said that the Service PMI came in at 62.9, which is a 24-year high. Analysts at Markit noted that “the latest survey results set the scene for an eye-popping rate of UK GDP growth in the second quarter of 2021, led by the reopening of customer-facing parts of the economy after winter lockdowns.”
In the US, the ISM’s Services PMI for the month of May came in at 64.0. Economists at ISM said that “the rate of expansion is very strong, as businesses have reopened and production capacity has increased. However, some capacity constraints, material shortages, weather-related delays, and challenges in logistics and employment resources continue.”
News in finance: In eurozone’s financial updates, Eurostat announced that retail sales fell by 3.1% on a monthly basis in April. The reading was higher than anticipated by market analysts. An ING report said that “we can still expect quarterly growth in retail sales to be very strong, as May saw a further easing of restrictions, boosting the GDP recovery in Q2 2021.”
In the US, Nonfarm Payrolls in May came in at 559,000. Market experts had been expecting a figure close to 650,000. Economists suggested that the report wouldn’t be enough to prompt a revision to Fed policy.
Another set of data published by the Bureau of Labour Statistics (BLS) showed that the unemployment rate decreased to 5.8% from 6.1% during May.
We hope you enjoyed the weekly Holborn market recap. Whether you are looking to shake up your investment strategy or plan your retirement, Holborn can help. To find out how we can help you, contact us using the form below.
From all of us at Holborn Assets, have a lovely weekend!
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