US stocks fall as Retail slumps

Yesterday’s markets

12th May 2016

  • GBP Manufacturing Production m/m: 0.1% 
  • CAD Gov Council Member Wilkins Speaks
  • USD Crude Oil Inventories: -3.4M
  • AUD RBA Assist Gov Edey Speaks
  • JPY Current Account: 1.89T

The Greenback has taken a breather in its recent rally, although it has recovered over 2% of its lows last seen in early May. Yesterday’s main focus however, was secondary sector data released from the UK. Firstly, Manufacturing Production disappointed posting a worse than expected 0.1% reading. Industrial Production released simultaneously followed suit, failing to meet economists’ consensus. There was a continuation of lackluster data releases from the UK this month. All three of last week’s PMI data figures failed to meet expectations and this poor trend of data looks likely to carry on.

Across the pond, US stocks fell after a slump in the Retail industry and a Poor Crude Oil Inventory figure was released. Retailers led declines in the US as Disney’s sales fell to its lowest since January and Macy’s outlook for the year disappointed. Yesterday afternoon, a government report on Oil Inventories posted its lowest reading in a month at -3.4M, leading to a sharp jump in the price of Crude Oil after the release. 

Today’s markets

11th May 2016

  • GBP BOE Inflation Report
  • GBP MPC Official Bank Rate Votes
  • GBP Monetary Policy Summary
  • GBP Official Bank Rate
  • GBP Asset Purchase Facility
  • GBP MPC Asset Purchase Facility Votes
  • GBP BOE Gov Carney Speaks
  • USD Unemployment Claims
  • USD Import Prices m/m
  • USD FOMC Member Rosengren Speaks
  • USD FOMC Member George Speaks
  • GBP MPC Member Haldane Speaks
  • NZD Retail Sales q/q
  • NZD Core Retail Sales q/q

Today is the biggest day of the week as the Bank of England release the Rate votes and Asset Purchase votes. With no expectations for a change in the votes from all MPC members, it is expected that this will remain at 0.9 to keep rates on hold. Following this, the focus of the markets will be on the conference held by Governor Mark Carney. From the conference, the markets will look to decipher what the plans of the BoE are on the possibility of a rate increase, also on how strong they perceive the UK economy to be. If hawkish comments are made by Mark Carney we should expect Sterling to strengthen.