Friday promises to be a busy day on the macroeconomic front. The main event will be May inflation in the United States, which will be revealed at 2:30 p.m. These figures come as rising prices continue to alert economic leaders around the world. Recently, Janet Yellen, former chairman of the US Federal Reserve and current Treasury Secretary, said that inflation pressures remained enormous and that they should continue. What worry Wall Street because inflation is often synonymous with purchasing power and corporate margins at half mast. The pace should also accelerate over a month, the Bloomberg consensus estimating the increase at 0.7% of consumer price index, against 0.3% in April. Year-on-year inflation in May is however expected to slow slightly to 8.2%, down from 8.3% last month.
Inflationary risks could also weigh on the US consumer confidence index from the University of Michigan unveiled at 4 p.m., still expected to fall to 58.2, against 58.4 the previous month. Bad news if it is confirmed, because household confidence depends on their consumption and therefore the health of the economy.
Producer price inflation slows in China
In China, the level of inflation was unveiled overnight, particularly in China. Producer price inflation slowed in May to its lowest pace in 14 months, official data showed, a consequence of weak demand for steel, aluminum and other key products amid strict health measures against Covid. The index has therefore only increased by 6.4% over one year, against an increase of 8% in April. At the same time, the consumer price index rose in May by 2.1% year on year, like the previous month and in line with the consensus.
In addition to prices, operators will be sensitive to the april current account balance published by Germany. It should fall to 18.8 billion euros, against 21.1 billion the previous month. Among the factors of this decrease, experts from CPR Asset Management pointed out that exports to China were proving increasingly difficult, especially for the automotive sector which is very important within the German economy.
On the French values side, Critical Group et Metabolic Explorer will hold their general meetings in the Paris region.
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R.G.
