On Thursday, May 23, 2019, the markets will focus on the release of economic calendar data, which usually result in changes in price movements. The economic agenda is a major tool for the fundamental analysis of the market performance forecast. Therefore, caution must be taken to determine the results of these actual data to make the right trading decision. The economic news today is:
French PMI: In France, the April IHS Markit PMI recorded a five-month high of 50.5 from 49.1 last month. The April reading was in line with analyst expectations. Improved demand conditions have led to new business growth for the first time since November 2018. The job creation rate has also accelerated. Costs continued to rise sharply, although inflation fell to its lowest level in a year and production prices rose at their fastest pace since January. Expectations for May 2019: Reading at 50.7.
German Industrial Purchasing Managers Index: In Germany, the IHS Markit Industrial Purchasing Managers Index was revised down to 44.4 in April from an initial estimate of 44.5. In March, the index was at its lowest level for 80 months at 44.1. New demands and production continued to contract sharply. New export sales also fell. However, capacity pressures continued to fall, resulting in a further slight decline in employment and a significant improvement in delivery times by suppliers since May 2009. Purchasing price inflation was slightly higher than the 32-month low in March as oil prices and wage pressures, which largely compensated for the lack of pricing power for suppliers and a reduction in steel costs and prices of related products. The price increase slowed for the fourth month in a row to its weakest level since November 2016. Expectations for May 2019: 44.9 reading.
German Service Purchasing Managers Index: In Germany, the IHS Markit Service PMI was revised upward to a seven-month high of 55.7 in April from the initial estimate of 55.6 previously reported. The previous month, the index was 55.4. New orders grew at their strongest pace since September last year despite a drop in new overseas labor flows. The job creation rate has been the fastest since October 2007. Outstanding work rose for the third consecutive month rose, albeit at a slow pace. Input cost inflation rose to a three-month high supported by rising wages, rising rents and energy costs. Expectations for May 2019: 55.2 reading.
European parliamentary elections for the euro zone: In the three-day European Parliament elections, citizens from 28 EU member states, including the United Kingdom, will vote for new members. The body, which has bases in Brussels and Strasbourg, has only limited influence on European issues, but there is much importance attached to its vote and composition. Anti-immigration parties and European parties are expected to gain substantial gains after five turbulent years of the immigration crisis and Brexit, Donald Trump's victory in the US election, rising employment, and severe uncertainty about the future. If radical parties succeed in making big gains, the Euro may lose a little value. There will be a special focus on voting in the UK. If the Conservative Party's performance remains weak, there may be pressure on Prime Minister Theresa May to step down. The result of an unpopular poll by the opposition Labor Party may also widen the internal divide. The poll could also prove to be a turning point for Brexit’s drama.