China’s Retail Sales Beat Expectations in May
China’s retail sales surged 3.7% in May, surpassing expectations. However, industrial output and fixed asset investment lagged behind forecasts. Industrial output increased 5.6% year-on-year, and fixed asset investment grew by 4%. The urban unemployment rate remained steady at 5%. Despite a 7.6% rise in exports, imports and loan growth underperformed. Inflation data showed a 0.6% increase in consumer prices excluding food and energy.
Stock Futures Steady Ahead of Shortened Week
Stock futures remained steady on Monday as traders enter a holiday-shortened week. For the week, the Dow posted its third losing week in four, while the S&P and Nasdaq marked their seventh positive week in eight, driven by tech. This week, investors focus on retail sales, home sales, and housing starts data, alongside earnings reports from Lennar, Kroger, Darden Restaurants, and CarMax. Markets will be closed on Wednesday for the Juneteenth holiday.
Crude Oil and Gold Markets See Mixed Movements
Oil prices slipped on Monday due to weaker U.S. consumer demand and increased Chinese production, despite a 4% weekly gain. Gold prices eased as investors await U.S. economic data, with recent reports hinting at stabilizing inflation. Analysts foresee potential benefits for gold if the U.S. dollar weakens and rate cut expectations rise. U.S. retail sales data, weekly jobless claims, and flash PMIs will be key indicators this week. Concerns about Middle East tensions also persist.
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