Canada GDP rises 0.5% for the month, but declines -0.5% for the quarter
Key Notes:
- New Zealand overseas trade index q/q 1.3% vs. -1.9%
- Australia AIG Manufacturing index 51.7 vs. 50.4
- Japan capital spending q/y 5.6% vs. 90%
- China manufacturing PMI 49.7 vs. 49.8
- Australia building approvals m/m 4.2% vs. 2.9%
- Australia current account -19.0bn vs. -15.9bn
- China final manufacturing PMI 47.3 vs. 47.2; services PMI 51.5 vs. 53.9
- RBA leaves cash rate unchanged at 2.0%
- Spain manufacturing PMI 53.2 vs. 53.9
- Swiss manufacturing PMI 52.2 vs. 49.9
- Italy manufacturing PMI 53.8 vs. 56.2
- French final manufacturing PMI 48.4 vs. 48.6
- Germany final manufacturing PMI 53.3 vs. 53.2
- UK manufacturing PMI 51.5 vs. 51.9
- UK M4 money supply m/m 1.0% vs. 0.2%
- Canada GDP m/m 0.5% vs. 0.2%
Later
- US Final manufacturing PMI
- ISM Manufacturing PMI
- Construction spending
- IBD/TIPP Economic Optimism
- ISM Manufacturing prices
The markets opened today marking a new trading month. Sentiment was mixed as China’s manufacturing PMI contracted, falling below 50 reigniting concerns of the effects of a slowdown from China. The Yen rallied as modest risk aversion set in and the US Dollar was trading mixed across the board. USDJPY was down -1.19% for the day as the currency declined from the start opening near 121.225 to trade near the lows of 119.8 at the time of writing.
The Asian session was busy today with various data from Australia and New Zealand. The RBA left interest rates unchanged and maintained a neutral tone in its statement. But the Aussie was weaker with AUDUSD down -0.9% for the day. The Kiwi was trading flat as the currency declined to session lows of 0.6317 before managing to trade back near the day’s open.
Australia’s building approvals grew more than expected at 4.2%, while the current account deficit fell to -19 billion. New Zealand’s trade index for the quarter grew 1.3% above the median estimates of -1.9% declines.
The European trading session saw the manufacturing PMI’s from various countries and was broadly softer across the board. Swiss manufacturing PMI was however stronger, rising to 52.2 above the median estimates of 49.9.
The Euro was noticeably stronger today, trading near the 1.125 handle and was up 0.38% higher. The Single currency earlier posted a brief high towards 1.133 before falling back lower.
The British Pound was weaker today as the Cable failed to hold on the early gains made during the day. The Cable fell from the session highs of 1.54 to trade lower at -0.24%. Manufacturing PMI from the UK was soft, rising 51.5 below estimates of 51.9.
The US trading session saw the release of the Canadian GDP data which showed the economy growing at a pace of 0.5%, beating estimates of 0.2%. However, on a quarterly basis, Canada’s GDP contracted -0.5% putting the economy into a technical recession. The previous quarter’s GDP was revised down to -0.8%. USDCAD was however flat for the day as the Loonie briefly touched session lows of 1.3119.
More data from the US is due later in the evening including the ISM manufacturing and construction spending data.
