Providing you with a short summary of events from around the world ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackfinch Group
Monday Market Update

The ever-changing world we live in reinforces the importance
of regular up-to-date communication. This weekly news update from our
multi-asset portfolio managers provides you with a summary of global events
 for your reference and to share with clients.

Issue 145 | 5th June, 2023 

UK COMMENTARY

  • Purchasing managers at UK factories reported employment, output, and new orders all contracted at a faster rate in May. Manufacturers continued to be affected by weak domestic market sentiment, as well as lower new export order intakes and client destocking, which offset benefits from improving supply chains. As a result, the S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to a four-month low of 47.1 in May, down from 47.8 in April. Readings below 50 indicate a contraction.
  • The average UK house price recorded its largest annual contraction in approximately 14 years in May, according to Nationwide’s house price data. The 3.4% fall in annual house prices reported in May was the biggest contraction since July 2009, when prices fell by 6.2% after the financial crisis hammered the property market.

NORTH AMERICA COMMENTARY

  • In the US, average hourly earnings increased by 4.3% year-on-year in May, according to the latest non-farm payroll report. This was down from 4.4% for the year to April.
  • The US economy defied analyst expectations by adding 339,000 jobs in May, a much higher increase than the 190,000 jobs anticipated, and defying the pressure of higher interest rates. This strong hiring is good news for President Joe Biden, but another headache for US Federal Reserve Chair Jerome Powell, as the central bank continues to battle inflation.

EUROPE COMMENTARY

  • Eurozone Consumer Price Index (CPI) inflation dropped to 6.1% in May, down from April’s 7.0%, as reported by statistics body Eurostat. However, European Central Bank president Christine Lagarde signalled more interest rate rises ahead.
  • France also followed this trend, with annual CPI inflation recorded at 5.1% in May, according to statistics body Insee, down from 5.9% for the year to April.

ASIA COMMENTARY

  • Weakening demand hit Chinese manufacturers in May, suggesting activity was slowing down, an indication the country did not want to see. China’s official manufacturing PMI fell to a five-month low of 48.8 in May, according to the National Bureau of Statistics (NBS). This was down from 49.2 in April and economists had hoped for a rise to 49.4.

GLOBAL COMMENTARY

  • The Food and Agriculture Organization (FAO) price index, which tracks the most globally-traded food commodities, fell from 127.7 in April to 124.3 in May, its lowest level since March 2021. Overall, levels are now 22% lower than the all-time high of March 2022, after the invasion of Ukraine ignited a surge in food costs.

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