Stocks are lower this morning as eurozone economic data indicates a further slowdown in May.
- On Wednesday: European stocks ended on a firm note, as investors picked up stocks amid optimism about economic recovery.
- US stocks Following the sharp pullback seen late in the previous session, stocks showed a strong move back to the upside during trading. With the upward move, the tech-heavy Nasdaq ended the session at its best closing level in three months.
- Asian stocks turned in a mixed performance as investors digested a report questioning the validity of Moderna’s early trial results for a possible coronavirus vaccine.
- The coronavirus pandemic brought an extraordinary amount of uncertainty and considerable risk to the economy in the medium term, FOMC minutes from meeting held on April 28-29 showed. Policymakers noted that interest rates will be kept near zero until a recovery is firmly in place and that the central bank is committed to use its full range of tools to support the US economy. The minutes offered a glum outlook on the coronavirus later this year, saying a second wave of the coronavirus outbreak with another round of strict restrictions could drag the US economy deeper in recession, prompting a jump in unemployment and renewed downward pressure on inflation.
- The consumer confidence in the Euro Area rose by 3.2 points to -18.8 in May 2020, recovering from the previous month’s 11-year low and above market expectations of -24.0, a flash estimate showed. In the European Union as a whole, consumer sentiment rose by 2.5 points to -19.5.
- The Eurozone inflation rate was revised slightly lower to 0.3% in April 2020, from a preliminary estimate of 0.4%. It was the lowest rate since August 2016, as energy prices fell 9.7%, more than initially thought, amid the coronavirus pandemic and an oil price war between Russia and Saudi Arabia. Meanwhile, prices rose at a slower pace for services (1.2% vs 1.3% in March) and non-energy industrial (0.3% vs 0.5%), while food inflation picked up (3.6% vs 2.4%). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, slowed to an eight-month low of 0.9%. On a monthly basis, consumer prices advanced 0.3%, following a 0.5% rise in March.
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