Highlights
April purchasing managers reports in focus Thursday and showing resilience in the face of the energy price shock and supply disruptions due to the Iran war. The US flash manufacturing PMI comes in at 54.0, a 47-month high, up from 52.3 in March and well above the 52.5 consensus forecast. Services moves into expansion at 51.3 in the April flash from 49.8 in March. Problem is surging input costs while worries about the outlook are reflected in weaker hiring.
That is the theme too in Thursday's Kansas City Fed manufacturing report where business activity shows ongoing slow expansion in April but hiring has slowed and firms are being squeezed by rising costs. The KC Fed manufacturing composite is at 10 in April versus 11 in March and 5 in February. An index above 0 indicates growing business activity from the previous month.
Meanwhile, oil futures prices edge up amid ongoing US-Iran battle for control of shipping in and around the Strait of Hormuz. President Trump posted that US forces will not hesitate to destroy any Iranian vessels laying mines and the Defense Department reportedly seized another tanker carrying Iranian oil.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.