Latest news with #Consumption
Yahoo
a day ago
- Business
- Yahoo
PCE for April Shows Economic Resilience
Friday, May 30, 2025The Fed's preferred measure of inflation, Personal Consumption Expenditures (PCE), are out for the month of April. Results were positive across the board — eyebrow-raisingly so, in some cases. In fact, these figures have been strong enough to cut in half the pre-market plummet on the major indexes once President Trump posted 'No more Mr Nice Guy' in his trade negotiations with this hour, the Dow is -114 points, the S&P 500 is -18, the Nasdaq -45 and the small-cap Russell 2000 is -10 points currently. The Dow, for instance, had fallen -244 points on the president's latest Truth Social post. Bond yields, on the other hand, are ticking up early today: +4.44% on the 10-year, +3.93% on the 2-year and +4.95% on the 30-year Income for April reached its highest single-month level in four years: +0.8% — well above the +0.3% expected and even above the upwardly revised +0.7% for March. We now see income growth in 2025 among the highest in many years, averaging +0.65% over the past four Spending, however, was in-line with expectations at +0.2% — half a point lower than the prior month's +0.7%. This is good news in terms of demonstrating economic strength amid plenty of murkiness among outlooks, though not exactly a feather in the cap for those who'd like to see the Fed lower interest PCE Index, month over month, was also as expected at +0.1%, up from the 0.0% reported the previous month. Year over year, +2.1% PCE is down 10 basis points (bps) from estimates. This also represents a low water mark last seen back in September of last PCE month over month — stripping out volatile food and energy costs — was identical to the overall headline: +0.1%, following 0.0% the prior month. Year over year, core PCE dropped to +2.5%, 10 bps below estimates and 20 bps beneath the upwardly revised +2.7% for considering our current environment, starting with early April's opening salvo into the latest global trade war, Advanced Retail Inventories are steady and benign: -0.1% on headline, in-line with expectations and -0.1% reported a month ago. Advanced Wholesale Inventories was flat for April, down from the +0.4% seen in the March it will take some more distance from tariff Ground Zero to see how the new trade realities manifest in these reports. After all, these numbers are all subject to future revisions, and most of the tariff threats have yet been put on pause. But for now, it's tough to find a complaint; things appear to be working on the more Trade Balance in Goods for April came in well below expectations: -$87.6 billion, the lowest since September of 2023. Analysts had expected -$147 billion, following a slight trimming to -$162 billion the previous month. This is the first advance trade deficit sub-12 digits since October of last first blush, one would have to assume this has to do with the trade impact. Then again, as we see in the other data reflecting tariffs and trade, much of the grist has yet to meet the mill. But if this does prove to be a resonant part of our new trade scenario, it's certainly a welcome the opening bell sounds on this final trading day for the week, the Chicago Business Barometer (PMI) for May is expected, as is final Consumer Sentiment, also for May. The former is expected to improve somewhat, though still come in sub-50, which is the tipping point between growth and loss. The latter is forecast to remain steady just over this 50 or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
2 days ago
- Business
- The Star
Ringgit strengthens against US$, court pauses block on Trump-era tariffs
KUALA LUMPUR: The ringgit opened stronger against the US dollar today, boosted by improved investor confidence in emerging market currencies after a US court temporarily halted a decision to block most Trump-era import tariffs, an analyst said. At 8 am, the local note surged to 4.2180/2485 versus the greenback from Thursday's close of 4.2390/2475. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell below the 100-point mark to 99.278 points after the US Court of Appeals for the Federal Circuit granted a reprieve from a US Court of International Trade ruling that would have blocked most Trump-era import tariffs on Wednesday (US time). Additionally, he said US economic data look weaker with Initial Jobless Claims rising more than expected to 240,000 last week against consensus estimates of 229,000 while the Continuous Jobless Claims accelerated to 1.91 million for the week ending May 17 from 1.89 million in the prior week. "Apart from that, the second estimate for the first quarter of 2025 US gross domestic product (GDP) contracted 0.2 per cent quarter-on-quarter seasonally adjusted annualised rate (SAAR), slightly better than the first estimate of -0.3 per cent but lower than the 2.4 per cent expansion in the previous quarter. "It appears that the US dollar weakening trend is likely to continue today, benefiting the ringgit," he told Bernama. Mohd Afzanizam said traders and investors will be looking at Personal Consumption Expenditure (PCE) inflation data. Consensus is pencilling the headline PCE and Core PCE at a moderate pace of 2.2 per cent and 2.5 per cent in April against 2.3 per cent and 2.6 per cent in the prior month. ALSO READ: Ringgit slips against US$ as Fed seen delaying rate cuts Therefore, the ringgit is expected to trend higher today, possibly around RM4.21 and RM4.22, owing to a weaker US dollar outlook, he added. At the opening, the ringgit traded mostly higher against a basket of major currencies. It is appreciated against the British pound to 5.6943/7355 from 5.7091/7205 from Thursday's close and gained vis-à-vis the euro to 4.7992/8339 from 4.7803/7899 previously. However, the local note declined against the Japanese yen to 2.9349/9563 from yesterday's close of 2.9188/9249. The local note was traded mostly higher against its ASEAN peers. It improved against the Singapore dollar to 3.2789/3031 from 3.2853/2921 on Thursday's close and inched up versus the Indonesian rupiah to 258.6/260.6 from 259.9/260.5 previously. The ringgit advanced vis-à-vis the Philippine peso at 7.56/7.62 from 7.60/7.62 at yesterday's close, but slid against the Thai baht to 12.9565/13.0590 from 12.9321/9647 previously. - Bernama
Business Recorder
2 days ago
- Business
- Business Recorder
Gold hits over one-week low as US tariff ruling dents safe-haven appeal
Gold prices slipped on Thursday to their lowest levels in more than a week after a US federal court blocked President Donald Trump's 'reciprocal tariffs', dampening the metal's safe-haven allure, while a robust dollar put further pressure on bullion. Spot gold was down 0.6% at $3,271.17 an ounce, as of 0618 GMT, after hitting its lowest since May 20. U.S. gold futures dropped 0.8% to $3,268.20. A US trade court on Wednesday halted the enforcement of Trump's tariffs, ruling the president exceeded his authority by imposing universal duties on imports from nations with a trade surplus with the United States. Gold prices recover sharply The U.S. court's decision is the key news driver leading to a rally in the dollar, which subsequently pushed gold prices lower, said Nicholas Frappell, global head of institutional markets at ABC Refinery. On April 2, Trump had levied 'reciprocal tariffs' on multiple countries, stoking fears of a global recession. However, many of those country-specific tariffs were paused a week later. Following the trade court's ruling, the U.S. dollar index rallied, making greenback-priced gold more expensive, with Wall Street futures and Asian equities also climbing. Meanwhile, the Trump administration filed a notice of appeal, challenging the court's authority and signalling a potential escalation to the Supreme Court if necessary. But the gold market is still bullish as 'longer-term outlook suggests a weaker dollar and there's still likely to be some inflationary pressures near term,' Frappell said. The minutes from the U.S. Federal Reserve's May 6-7 session showed that officials are concerned about the potential for concurrent rises in inflation and unemployment, a scenario that would necessitate a choice between implementing tighter monetary policy to combat inflation or lowering interest rates to support economic growth and employment. The market now awaits U.S. GDP data due later in the day, with core U.S. Personal Consumption Expenditures data for further cues on rate outlook. Elsewhere, spot silver rose 0.7% to $33.21 an ounce, platinum was down 0.2% at $1,073.15 and palladium edged 0.9% higher to $971.57.
Mint
2 days ago
- Business
- Mint
Gold hits over one-week low as US tariff ruling dents safe-haven appeal
- Gold prices slipped on Thursday to their lowest levels in more than a week after a U.S. federal court blocked President Donald Trump's "reciprocal tariffs", dampening the metal's safe-haven allure, while a robust dollar put further pressure on bullion. Spot gold was down 0.6% at $3,271.17 an ounce, as of 0618 GMT, after hitting its lowest since May 20. U.S. gold futures dropped 0.8% to $3,268.20. A U.S. trade court on Wednesday halted the enforcement of Trump's tariffs, ruling the president exceeded his authority by imposing universal duties on imports from nations with a trade surplus with the United States. The U.S. court's decision is the key news driver leading to a rally in the dollar, which subsequently pushed gold prices lower, said Nicholas Frappell, global head of institutional markets at ABC Refinery. On April 2, Trump had levied "reciprocal tariffs" on multiple countries, stoking fears of a global recession. However, many of those country-specific tariffs were paused a week later. Following the trade court's ruling, the U.S. dollar index rallied, making greenback-priced gold more expensive, with Wall Street futures and Asian equities also climbing. [MKTS/GLOB][USD/] Meanwhile, the Trump administration filed a notice of appeal, challenging the court's authority and signalling a potential escalation to the Supreme Court if necessary. But the gold market is still bullish as "longer-term outlook suggests a weaker dollar and there's still likely to be some inflationary pressures near term," Frappell said. The minutes from the U.S. Federal Reserve's May 6-7 session showed that officials are concerned about the potential for concurrent rises in inflation and unemployment, a scenario that would necessitate a choice between implementing tighter monetary policy to combat inflation or lowering interest rates to support economic growth and employment. The market now awaits U.S. GDP data due later in the day, with core U.S. Personal Consumption Expenditures data for further cues on rate outlook. Elsewhere, spot silver rose 0.7% to $33.21 an ounce, platinum was down 0.2% at $1,073.15 and palladium edged 0.9% higher to $971.57. This article was generated from an automated news agency feed without modifications to text.
The Star
3 days ago
- Business
- The Star
Gold hits over one-week low after US court blocks most of Trump's tariffs
GOLD touched a more than one-week low on Thursday after a U.S. federal court blocked President Donald Trump's "reciprocal tariffs", dampening the metal's safe-haven allure, while a robust dollar further pressured prices of the precious metal. Spot gold was down 0.5% at $3,273.37 an ounce, as of 0431 GMT, after hitting its lowest since May 20. U.S. gold futures dropped 0.7% to $3,270.80. A U.S. trade court on Wednesday halted the enforcement of Trump's tariffs, ruling the president exceeded his authority by imposing universal duties on imports from nations with a trade surplus with the United States. The U.S. court's decision is the key news driver leading to a rally in the dollar, which subsequently pushed gold prices lower, said Nicholas Frappell, global head of institutional markets at ABC Refinery. On April 2, Trump had levied "reciprocal tariffs" on multiple countries, stoking fears of a global recession. However, many of those country-specific tariffs were paused a week later. Following the trade court's ruling, the U.S. dollar index rallied, making greenback-priced gold more expensive, with Wall Street futures and Asian equities also climbing. Meanwhile, the Trump administration filed a notice of appeal, challenging the court's authority and signalling a potential escalation to the Supreme Court if necessary. But the gold market is still bullish as "longer term outlook suggests a weaker dollar and there's still likely to be some inflationary pressures near term," Frappell said. The minutes from the U.S. Federal Reserve's May 6-7 session showed that officials are concerned about the potential for concurrent rises in inflation and unemployment, a scenario that would necessitate a choice between implementing tighter monetary policy to combat inflation or lowering interest rates to support economic growth and employment. The market now awaits U.S. GDP data due later in the day, with core U.S. Personal Consumption Expenditures data for further cues on rate cut trajectory. Elsewhere, spot silver rose 0.6% to $33.19 an ounce, platinum was up 0.6% to $1,080.90 and palladium edged 1.3% higher to $974.69. - Reuters
