Friday, 31 May 2019

Markets mixed, US first quarter GDP revised down

Markets were mixed on Thursday.

The S&P 500 rose 0.2 percent while the STOXX Europe 600 rose 0.4 percent but the Nikkei 225 fell 0.3 percent.

The US Commerce Department revised down its estimate of first quarter GDP growth to a 3.1 percent annualised rate from 3.2 percent.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said that the downward revision was “widely expected, but core personal consumption was revised down to 1.0%, below the 1.3% street estimates.”

Cieszynski said that “there’s no pressure on the Fed to raise rates any time soon, perhaps not at all this year”.

US-China trade tensions remain palpable, with Chinese Vice Foreign Minister Zhang Hanhui saying that provoking trade disputes is “naked economic terrorism”.

“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” the People’s Daily said in a commentary piece.

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