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5 May 2016
US: Concerned about the sluggish pace of global growth - Rabobank
Piotr Matys, EM FX Strategist at Rabobank, notes that the US stocks extended their losses amid concerns about the sluggish pace of global growth as reflected in a mixed set of data published so far this week.
Key Quotes
“US private companies added just 156k workers in April (much lower than 195k expected by the market) according to a report published by the ADP on Wednesday.
On positive note, the pace of expansion in the US services sector improved as the Institute for Supply Management’s non-manufacturing PMI index increased to 55.7 in April from 54.5 in March.
However, it proved insufficient to prevent the S&P500 and the DJIA from ending another session in the red at 2,051.12 and 17,651.26 respectively on Wednesday as the markets also had to assess the possibility of a hike in June following recent wave of hawkish comments from Fed officials including Dennish Lockhart and John Williams.”
Key Quotes
“US private companies added just 156k workers in April (much lower than 195k expected by the market) according to a report published by the ADP on Wednesday.
On positive note, the pace of expansion in the US services sector improved as the Institute for Supply Management’s non-manufacturing PMI index increased to 55.7 in April from 54.5 in March.
However, it proved insufficient to prevent the S&P500 and the DJIA from ending another session in the red at 2,051.12 and 17,651.26 respectively on Wednesday as the markets also had to assess the possibility of a hike in June following recent wave of hawkish comments from Fed officials including Dennish Lockhart and John Williams.”