Canada May CPI 2.9% versus 2.6% expected
US June consumer confidence 100.4 vs 100.0 expected
Richmond Fed June manufacturing index -10 vs 2 expected
Fed’s Cook: Current policy is well positioned, attentive to inflation expectations
Shares of Fedex jump as 2025 guidance lowers capex, highlights cost savings
Shares of Nvidia surge nearly 7% to lead tech rebound
US sells 2-year Treasury notes at 4.706% vs 4.706% WI
Dallas Fed service sector revenue +1.9 vs +6.7 prior
US May national activity index +0.18 v…
Canada’s May CPI came in at 2.9% versus the expected 2.6%, indicating higher than anticipated inflation. This may have an impact on consumer purchasing power and the overall economy. In the US, consumer confidence for June exceeded expectations at 100.4, showing optimism among consumers. However, the Richmond Fed’s June manufacturing index fell to -10 from the expected 2, signaling a contraction in the manufacturing sector.
Fed’s Cook expressed confidence in the current policy, stating that it is well positioned and attentive to inflation expectations. This reassurance may help stabilize markets and investor sentiment.
Shares of Fedex rose after the company lowered its capex guidance for 2025 and highlighted cost savings, while Nvidia’s stock surged nearly 7%, leading a tech rebound in the market. Meanwhile, the US sold 2-year Treasury notes at the expected rate of 4.706%, indicating stability in the bond market.
Despite the positive consumer confidence data, the Dallas Fed reported a decrease in service sector revenue, and the US May national activity index showed a slight increase, suggesting mixed signals in the economy.
How will this affect me?
The higher CPI in Canada may lead to increased prices for goods and services, impacting my purchasing power. The rise in consumer confidence in the US could signify a stronger economy, potentially leading to more job opportunities and overall financial stability. However, the contraction in the manufacturing sector and revenue decrease in the service industry may signal potential challenges in the job market.
How will this affect the world?
The global markets may react to the mixed economic data, with investors closely monitoring the impact of inflation in Canada and manufacturing contraction in the US. The tech rebound led by Nvidia’s surge could positively influence other tech companies worldwide. The stability in the bond market with the sale of US Treasury notes at the expected rate may indicate confidence in the US economy, affecting international investors and trading partners.
Conclusion
Overall, the economic data from Canada and the US presents a varied picture, indicating both opportunities and challenges ahead. While the rise in consumer confidence and tech sector performance are positive signs, the manufacturing and service sector contractions raise concerns about the broader economic outlook. It is essential to monitor these developments closely to navigate the evolving economic landscape effectively.
