Summary for the 29th of April 2019


The trade talk between the US and Japan ended last week, and the next trade meeting will be in Beijing next Tuesday. The US Treasury Secretary Steven Mnuchin said yesterday that both the US and China were nearing a deal, and that the deal could be signed at the end of May.

US GDP numbers released on Friday showed a solid growth in the economic activity but still uncertainty about inflation outlook. The annualized quarterly GDP growth was at 3.2% in the first quarter of 2019. The market was expecting a 2.2% growth. The domestic demand had slowed down, while the net trade and inventory buildup had lifted the GDP growth by 1% and 0.7% respectively.

The data for the US non-farm payroll will be released on Friday. The Federal Reserve interest rate decision will be on Wednesday, the growth in GDP deflator fell below 1% in the first quarter from a year before while core PCE deflator, Fed’s preferred inflation measurement fell from 1.8% in the fourth quarter 2018 to 1.3% in the first quarter of 2019. The interest rate meeting will probably be going more into this topic.

The Bank of England interest rate decision, flash estimate for the EU area’s GDP growth, EU inflation numbers for April and PMI numbers from around the world will be held/released this week.

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