The last day of April will deliver a flood of economic reports to close off the week and the month.
Early in the day Japan published its unemployment rate for March, which was lower than expected at 2.6%. Industrial production also increased to 4%, while foreign investment dropped in March. Housing starts were up, but consumer confidence in April dropped to 34.7, in large part due to the resurgence of the coronavirus in Japan.
China published its NBS manufacturing PMI for April today, which disappointed investors at 51.1. The non-manufacturing PMI was also lower than the previous month.
There was a ton of data published in Europe today as well. Of that, the main highlights are the GDP growth rate reports from Germany, the EU’s economic powerhouse. The YoY report was better than expected, showing a growth rate of -3%, but QoQ the number was disappointing.
Both GDP growth rate readings from Italy were more encouraging, as was Italy’s inflation rate report for April.
As for the eurozone as a whole, all inflation rate reports met the forecasts perfectly, showing that prices are increasing according to the expectations. The GDP growth rate reports, however, were better than the forecasts, as was the unemployment rate number, which dropped to 8.1%. Still, the GDP data, despite exceeding expectations, officially marks another recession for the European Union, a predictable outcome, considering how poorly the bloc handled vaccinations in Q1.
Later today the United States will deliver its own batch of economic reports. Of these, the most important ones will be the March PCE price index and the Michigan consumer sentiment survey for April.
The stock markets today will continue to be a stage for much excitement among investors. Yesterday’s tech earnings reports were extremely positive. All major tech names - Facebook, Google (Alphabet), Apple, Microsoft, and Amazon shone this week. Amazon did especially well, earning a profit of $8 billion in the first three months of this year, exceeding all expectations.
Major US stock indices will trade downward today as many investors use this time to take their profits now that the hectic earnings season is completed.
Commodities also remain of interest today. Palladium extended its rally above $3,000 per ounce. Copper weakened slightly but this might change again as investors become more optimistic about industrial metals.
