• US equities rally into the close trading back to recent highs
• Fed’s Barkin said he needs inflation to settle back to its 2-3% target before rate rises are paused.
• Lagarde on the wires saying once the inflation objective has been achieved we can discuss changing the 2.0% inflation target.
• The International Monetary Fund sees growth at 2.8% in 2023 and 3.0% for 2024, this is down slightly on January’s forecast. Global growth is seen at 3.0% in 2028, this is the worst mid-term forecast since 1990.
• SpaceX Starship launch has been delayed because of a valve freezing issue. No reschedule of the launch has been set.
• China’s defence minister Li Shangfu has again confirmed his support to Russia in its invasion of Ukraine. China is willing to help strengthen military efforts with Russia.
• NY State Manufacturing rebounded in April- the Index printing 10.8 compared to -17.7, a good barometer of economic growth.
• Housing demand in the US rises for the fourth straight month in April.
• The Australian Dollar (AUD) was the strongest currency last week with the New Zealand Dollar (NZD) and the Japanese Yen (JPY) the weakest.
Major Announcements last week:
US CPI y/y 5.0% vs 5.1% predicted
Bank of Canada leave interest rates on hold at 4.50%
Australian Unemployment drops to 3.5% form 3.6%
UK GDP in February prints at 0.0% showing no growth
US Retail Sales -1.0% vs -0.4% expected