Equity markets
Equity markets were hesitant on Friday ahead of US non-farm payrolls, and the dollar traded near an eight-week low. The median expectation for May is for 185,000 job creations. The unemployment rate is forecast to remain at 3.9%.
Chinese exports
In China, exports grew 7.6% year-on-year in May, beating a forecast 6% increase and a 1.5% rise seen in April. But imports increased only by 1.8% in May, slowing from an 8.4% jump in the previous month, highlighting the fragility of domestic consumption. This is yet another sign that China’s economy is recovering at varying speeds. A few weeks ago, first quarter growth blew past forecasts. Export and industrial production data suggest an improvement in global demand, but soft domestic demand remains a weak point.
The Halifax house price index
In Germany, industrial production fell 0.1% in April month-on-month (MoM), missing expectations of a 0.3% increase. In the UK, the Halifax house price index unexpectedly fell by 0.1% MoM. Economists anticipated a 0.2% rise. On an annual basis, house prices rose by 1.5%. Values had briefly rebounded in April following four months of declines.
Oil
Oil prices were on track for a third consecutive week of losses. Oil analysts awaited the Baker Hughes rig count. The previous week, the total rig count remained at 600. The number of producing oil rigs fell by one to 496.
