Global markets find relief as Trump postpones Iran military action​

Source: Theguardian

source :reuters

Retail sales in Canada rose 0.3% to $70.1 billion in April, driven largely by gains in the motor vehicle and parts subsector, according to data released Friday by Statistics Canada. Sales increased in six of nine subsectors, while retail e-commerce climbed 3.6%.

The rebound also translated into a 0.5% gain in volume terms, suggesting stronger real activity. Still, retailers reported mounting pressure from Canada/U.S. trade tensions, with 36% citing issues such as higher prices, supply chain disruptions, and weaker demand.

Motor vehicle and parts dealers led the monthly increase, up 1.9%, as both new and used car sales posted gains exceeding 2%. By contrast, sales at gasoline stations fell 2.7%, although volume-adjusted figures rose slightly by 0.4%.Core retail sales—which exclude autos and gasoline—edged up just 0.1%, pointing to subdued discretionary spending. The biggest drag came from clothing and accessory stores, down 2.2%, offsetting modest gains in sporting goods, electronics, and grocery categories.

Regionally, five of ten provinces posted growth. British Columbia led with a 1.7% increase, bolstered by strong auto sales in the Vancouver area. Ontario rose 0.2% overall, though Toronto saw a stronger 2.7% gain. New Brunswick (NYSE:BC) recorded the steepest drop at 3.1%, weighed down by auto-related weakness.

Despite April’s improvement, preliminary data for May suggest a potential pullback. Early estimates point to a 1.1% decline in retail sales, based on 53.8% of survey responses. While subject to revision, the data signal a soft start to the summer for Canada’s retail sector.

Source: Investing

Source: AP

source :sharecast

The Philadelphia Federal Reserve Manufacturing Index, a key indicator of general business conditions in Philadelphia, has remained steady, according to recently released data. The actual number for the index stood at -4.0, an identical figure to the previous month’s reading.

Interestingly, the actual figure of -4.0 also defied the forecasted number, which had been pegged at -1.7. The prediction suggested a slight improvement in the business conditions, however, the actual data showed that the conditions remained unchanged in the Philadelphia Federal Reserve district.

The Philadelphia Fed Manufacturing Index is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district. A level above zero on the index indicates improving conditions, while a reading below zero indicates worsening conditions. The steady figure of -4.0, therefore, suggests that the business conditions in the region have not improved since the last reading.

The index carries significant importance as it not only provides insights into the health of the manufacturing sector but also has implications for the USD. A higher than expected reading is typically taken as positive or bullish for the USD, while a lower than expected reading is considered negative or bearish.

In this case, the actual figure of -4.0, which is lower than the forecasted -1.7, could be perceived as bearish for the USD. However, it is essential to note that the figure is not a further decline, but a continuation of the previous month’s conditions.

The steady reading of the Philadelphia Fed Manufacturing Index suggests that manufacturers in the region are still facing challenging business conditions. The data underscores the need for strategies to stimulate the manufacturing sector and improve the overall business climate in the Philadelphia Federal Reserve district.

Source: Investing