The U.S. dollar saw gains after a critical manufacturing report in China signaled the world’s second-largest economy is slowing down. Today’s insight includes a bounce-back for oil prices, economic concerns Down Under, testimony from European Central Bank head Mario Draghi and the world’s reaction to China’s slowing economic growth.
Following a weak first quarter dogged by a west coast port strike and a severe winter, the economy appears to be improving. On the one hand the latest report offered a substantial negative revision to March payrolls, on the other it was the only month this year to deliver a sub-200,000 payroll reading
U.S. stocks fluctuated after equities posted their first weekly drop in a month as investors weighed growing unrest in Iraq and an International Monetary Fund report saying the Federal Reserve may be able to keep rates lower for longer.
Analysts had the market prepped for expansion at a faster 55.2 pace before the report, which in the event showed manufacturing activity was slightly less brisk than during April, easing 1.7-points to 53.2; 0.6-points slower than the six-month average.