Japan’s services sector activity expanded for the first time in four months in April, as consumer sentiment recovered after the government lifted coronavirus curbs following a decline in domestic Omicron infections. The final au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 50.7 from the previous month’s final of 49.4. That was also better than a 50.5 flash reading for April. Business in the sector saw overall input prices rise at the steepest rate since August 2008 on higher raw material, fuel and wage costs, the survey showed. Private sector firms overall faced further rises in cost pressures due to persistent material shortages and delivery delays amid the Ukraine war and longer coronavirus curbs in economic giant China, Japan’s largest trading partner. The composite PMI, which is calculated using both manufacturing and services, expanded at a slightly faster rate than in the previous month, rising to 51.1 from March’s 50.3 final.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Exports (YoY) (Apr) decreased from 14.7% to 3.9%
Imports (YoY) (Apr) increased from -0.1% to 0.0%
Trade Balance (USD) (Apr) increased from 47.38B to 51.12B
Average Cash Earnings (YoY) remain the same at 1.2%
Overall wage income of employees (Mar) remain the same at 1.2%
Overtime Pay (YoY) (Mar) decreased from 5.8% to 2.5%
Services PMI (Apr) increased from 50.5 to 50.7
Some economic news from today
Foreign Reserves USD (MoM) (Apr) decreased from 379.7B to 365.2B
Britain’s Ministry of Defense said on Monday that over 2 billion pounds worth of defense contracts have been awarded to start the third phase of its submarine nuclear deterrent programmed termed ‘Dreadnought’. London-listed blue-chip companies, BAE systems and Rolls-Royce have received the contracts, the MoD said in a statement, adding that the investment was part of a planned 10-billion-pound spend for the whole delivery phase.
Investors rediscovered much of their appetite for riskier bets by Thursday afternoon with the MSCI global index finishing well above its session low and the U.S. dollar paring gains while oil futures pulled back from multi-year records after Russia’s invasion of Ukraine and responses from other countries. MSCI’s gauge of stocks across the globe closed down 0.46% after earlier falling more than 3% to touch its lowest level since March 2021.
The major Europe stock markets had a negative day:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
Manufacturing Production (MoM) (Mar) increased from -2.1% to 0.6%
French Current Account (Mar) decreased from -0.90B to -3.20B
French Exports (Mar) decreased from 45.8B to 45.7B
French Imports (Mar) increased from 56.1B to 58.1B
French Trade Balance (Mar) decreased from -10.4B to -12.4B
Sentix Investor Confidence (May) decreased from -18.0 to -22.6
A new survey by the Federal Reserve released today shows that consumers in the US are a bit more optimistic about inflation. Inflation forecasts over the next year fell to 6.3%, marking a 0.3% decline from the initial expectation. This is quite optimistic as March’s figure came in at 8.5%, the highest rate of inflation since 1981. Americans also feel more secure in their employment with only 10.8% expecting to leave their position over the next 12 months. Consumers believe gas and food prices will begin to decline as well. Still, Americans fear that the cost of living will continue to rise by an alarming 8% over the next year. President Biden is scheduled to discuss the matter with the public this Tuesday.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a negative day today:
The above data was collected around 14:49 EST on Monday
The above data was collected around 14:55 EST on Monday.
Japan 0.246%(+0.6bp), US 2’s 2.62% (-0.112%), US 10’s 3.0752% (-6.72bps); US 30’s 3.21% (-0.032%), Bunds 1.100% (-3.7bp), France 1.643% (-2.3bp), Italy 3.162% (+1.3bp), Turkey 21.54% (-19bp), Greece 3.632% (+8.9bp), Portugal 2.278% (-1.2bp); Spain 2.255% (+0.4bp) and UK Gilts 1.9590% (-3.8bp).