UK economy
The UK is heading into a recession, as the cost of living keeps rising and growth is slowing. According to the Office for National Statistics, the British economy fell 0.3% (MoM) in April 2022.
The UK is heading into a recession, as the cost of living keeps rising and growth is slowing. According to the Office for National Statistics, the British economy fell 0.3% (MoM) in April 2022.
The focus is on the US Consumer Price Index. This inflation measure is highly watched by investors to assess the health of the US economy and to monitor if the Federal Reserve’s efforts to tame inflation by raising the interest rate are paying off.
The ECB’s long-awaited monetary policy decision was out today All eyes were focused on what President Lagarde said during the press conference.
On 24 January 2020, we registered the first confirmed Covid 19 case in Europe. That day signs the beginning of one of the most complex periods of the European Economy. The lockdown, in fact, put a lot of pressure on the economy in general and more particularly on the small and medium enterprises which started crumbling as the demand for their goods and services dropped significantly.
Today the focus is on nonfarm payroll, an indicator generally published on the first Friday of each month by the US Bureau of Labor Statistics. The US May jobs report is being closely watched to monitor any effects of the Federal Reserve’s interest rate hike on the labor market.
While the improvement of the epidemiological situation in China led to an easing of restrictions and a positive reaction in the markets, the new sanctions against Russia drove oil prices upward. According to the agreement reached on Monday by EU leaders, 90% of the Russian crude imports will be banned by the end of the year.
Today, on the macro front, the Personal Consumption Expenditures (PCE) Price Index was released by the US Bureau of Economic Analysis. This key indicator is the Fed’s preferred gauge to measure inflation. According to the Fed’s latest minutes published Wednesday, “the staff’s projection for PCE price inflation was revised up slightly in the second half of 2022 and in 2023”.
Concerns about inflation and growth continue to be the major concern of investors. Important data to keep an eye on, therefore, is the Purchasing Managers’ Index (PMI), published today by IHS Markit (S&P Global). The extent to which the war in Ukraine and lockdowns in China are causing supply chain disruptions and increasing inflationary pressures are reflected in the index.
The period of high volatility in the markets continues, with traders increasingly concerned about the economic slowdown. The data on US consumer sentiment released on Friday only fueled this concern.