The past few days have been rough for Japanese stocks - Nikkei plunged more than 6% this week as investors began to question effectiveness of the country's economic policies.
US stocks on the other hand edged higher, erasing a weekly loss for the Standard & Poor's 500 Index, after growth in employment exceeded economists' forecasts. While monthly employment report beat forecasts it did suggest that economic growth is tepid enough for the Federal Reserve to maintain its bond-buying program over the next few months.
Following is an economic review for the week June 3 - June 7, 2013.
Monday, June 3
Great Britain Manufacturing PMI:
A strong rise in new orders helped Britain's manufacturing sector grow at its fastest pace in over a year last month. UK Manufacturing PMI rose to 51.3 in May from an upwardly revised 50.2 in April, ahead of consensus forecast.
US Manufacturing PMI:
US Manufacturing PMI increased to 52.3 in May from a six-month low of 52.1 in April, indicating modest growth in US manufacturing sector.
Tuesday, June 4
US Trade Balance:
US trade deficit widened (8.5% to $40.3 billion) in April, as demand for foreign cars, cell phones and other imported goods outpaced growth in US exports.
Canada Trade Balance:
Canada's trade deficit widened to $567 million in April from $3 million the prior month as exports fell for the first time in five months, and imports, including from the US, jumped to record high levels. The widening of the deficit in April coincided with an appreciation of the Canadian Dollar.
Wednesday, June 5
ISM Non-Manufacturing PMI:
US ISM Non-Manufacturing PMI rose to 53.7 in May from 53.1 in April, indicating modest growth in the non-manufacturing sector.
Factory Orders m/m:
US Factory Orders rose less than forecast in April as demand for non-durable goods dropped, probably reflecting lower fuel costs.
Crude Oil Inventories:
US crude oil supplies fell 6.3 million barrels (1.6%) for the week ending May 31.
Thursday, June 6
BOE Rate Decision & Asset Purchase Plan:
Bank of England maintained its bank rate at 0.5% and its target for asset purchases at £375 billion.
US Unemployment Claims:
US unemployment benefits fell 11,000 last week to a seasonally adjusted 346K, a level consistent with steady job growth.
EIA US Natural Gas Storage:
Natural gas futures tumbled sharply to hit a three-month low after US supply data showed that natural gas supplies rose more-than-expected last week. Natural gas storage for the week ended May 31 rose by 111 billion cubic feet, above market expectations for an increase of 95 billion.
Friday, June 7
Canada Unemployment Rate:
Canada's economy created 95K new jobs in May - the biggest monthly gain in nearly 11 years - blowing past expectations of 15K in new job creation.
US Non-Farm Employment Change:
Despite anticipation of a spring-into-summer swoon, the U.S. economy continued to create jobs at a relatively steady pace in May, adding 175,000 positions as the unemployment rate ticked higher to 7.6%.
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