Home > May 2017 > May 1,2017 Happy May Day..Will everyone go away in May?

May 1,2017 Happy May Day..Will everyone go away in May?

Almost everyone is on holiday today so not much is happening. China OFFICIAL Govt PMI came in on Saturday below expectations hitting 6 month low. Press is also coming out reporting that the US Govt shut down has been put off until September.

May 2017

  • Trading_Nymph

    From Reuters on the Official China PMI… Growth in China’s manufacturing sector slowed faster than expected in April, an official survey showed on Sunday, as producer price inflation cooled and policymakers’ efforts to reduce financial risks in the economy weighed on demand.

    The National Bureau of Statistics’ official Purchasing Managers’ Index (PMI) fell to a six-month low of 51.2 in April from March’s near five-year high of 51.8.

    Analysts polled by Reuters had predicted a reading of 51.6, the ninth straight month above the 50-point mark that separates growth from contraction on a monthly basis.

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    Demand weakened across the board with the biggest decline in the input price sub-index, which fell to 51.8, its slowest expansion since June last year, from 59.3 in March.

    Zhou Hao, an economist at Commerzbank in Singapore, said recent sharp declines in iron ore and onshore steel prices point to some of the pressures the country’s manufacturers are facing.

    “We believe that this on one hand reflects that there is little improvement in underlying demand,” Zhou wrote in a note.

    “On the other hand, the de-leveraging effort by the Chinese authorities, has started to work.”

    Chinese steel and iron ore futures tumbled to multi-month lows earlier this month as market sentiment turned bearish on demand outlook and worries mounted about a glut of steel later this year.

    The employment sub-index slipped to 49.2 from 50.0 in March while the raw materials inventories sub-index was unchanged at 48.3.

    Growth in China’s services sector slowed slightly to 54.0 in April, compared with the previous month’s reading of 55.1, which was the highest since May 2014.

    China’s economy grew a faster-than-expected 6.9 percent in the first quarter, boosted by higher government infrastructure spending and the nation’s gravity-defying property boom.

    But growth is expected to slow as authorities step up a battle to cool the property sector and as the central bank and banking regulator take steps to contain financial risks.

    The People’s Bank of China is expected to guide short-term interest rates higher, and step up its oversight of the financial sector, amid a crackdown on banks’ shadow banking businesses.

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    China April official services PMI falls to 54.0 vs 55.1 in March
    Chinese leaders have pledged to shift the emphasis to addressing financial risks and asset bubbles, which analysts say pose a threat to the world’s second-largest economy if not managed properly.

    President Xi Jinping last week called for increased efforts to ward off systemic risks to help maintain financial security, the official Xinhua news agency reported.

    Some analysts believe China’s economic growth may have peaked in the first quarter but that it’s on track to hit a target of around 6.5 percent this year.

    China’s producer price inflation cooled for the first time in seven months in March as iron ore and coal prices tumbled, while property sales growth slowed in the first quarter despite robust property investment.

    The private sector Caixin/Markit PMI manufacturing survey, which focuses more on small and mid-sized firms, will be published on May 2. The Caixin/Markit PMI is expected to come in at 51.0 for April, according to a Reuters poll of economists, down from 51.2 in March.

  • panther341

    “Monster Truck Week” LOL FOMC plus NFP plus earnings in AAPL and FB. FOMC should be non-event.

    Long bonds were at 145’26 prior to the March FOMCmeeting. Today – overnight low is 152’16 – which is kind of the top of the box of consolidation going back to November 2 – pre-election. So there isn’t much fear of a rate hike this meeting. Bonds went up – yields went DOWN – after the Fed raised rates in March! (This is the 30 year – long end of the yield curve for now until Mnuchin gets around to a 50 or 100 year bond.) And this is with equity markets at or near all time highs.

    Of course there is the little Canada deal.

  • panther341

    O – for more entertainment: TSLA earnings are also Wednesday after the close. same day as FB. same day as FOMC.

    HOw to hide bad earnings: Announce same day as FB and TSLA. Or last week, same day as MSFT, INTC, GOOG and AMZN and BIDU. LOL

  • panther341

    Wilbur Ross live on CNBC almost daily. Today he is in Beverly Hills, but no problem. Live on CNBC.

  • panther341

    3 hours later and bonds are down a good bit after going up on the ISM numbers. I guess FOMC reality check is in place in bonds – though nothing indicates they will raise rates ahead of the NFP – especially after Friday’s GDP numbers.

  • panther341

    gold right at 50% retracement plus 200 day moving average. 50% retracement measured from July 2016 high to Dec 15, 2017 low. Amusingly the 23.6% retracement from all time high in 2011 to the December 2015 low – the lowest point since the 2011 high. All those things converge in the 1250 area.

  • Trading_Nymph

    It was such a slow day, Wilbur was over at Beverly Hills? lol. Small World.

  • Trading_Nymph

    Agree! lol, You forgot the Global PMI’s too. All the Central Bank Meetings are non event this month I believe. Well, Russia, but they already cut.

  • Trading_Nymph

    That NFP number should actually be a tad softer with China and US numbers weaker for PMI’s and just seasonally there is less of a need for workers….lets see.

  • Trading_Nymph

    And the VIX is at super low…..no fear of this week at all. lol, ouch..