The week ahead: 20 - 24 May 2024
These are the Key Macro Events for the upcoming week.
US – On Wednesday, the minutes of the May 1st FOMC meeting will be released, which markets will be reading carefully for any signal on the Fed’s debate on inflation. On Thursday, we expect the US Manufacturing PMI release to show a marginal decrease to 49.9, consistent with weakness in regional manufacturing indices.
Eurozone – On Thursday 23 May the eurozone composite PMI’s for May are released. We expect the composite PMI to stay above the neutral mark similar as in last months reflecting positive economic momentum for the euro area in the second quarter. The underlying divergence between services and manufacturing is expected to continue. With manufacturing still in recessionary territory but showing signals of bottoming out and the services PMI solidifying further above the neutral mark on the back of strong services demand due to rising real incomes.
China – On Monday 20 May, we expect China’s 1-year loan prime rate to be maintained at 3.45% (in line with consensus), after the PBoC left the 1-year rate on its medium-term lending facility unchanged at 2.50% on 15 May.