Markets fall, euro area in recession

Markets fell on Friday.

The S&P 500 fell 0.7 percent, the STOXX Europe 600 fell 0.3 percent and the Shanghai Composite fell 0.8 percent.

Economic data on Friday were mixed.

In the US, consumer spending rose a better-than-expected 4.2 percent in March.

However, in the euro area, GDP fell 0.6 percent in the first quarter, a second consecutive quarterly decline that means that the region technically fell into recession.

In China, the official manufacturing PMI fell to 51.1 in April from 51.9 in March.

“In our view, the global economy will benefit from spill‑overs via higher US imports,” wrote Kim Mundy, a senior economist and currency strategist at the Commonwealth Bank of Australia. “The combination of low interest rates, an improving US economy and an improving global economy is a recipe for the USD to continue on its downward trend.”