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- Markets in Asia were thrashed in overnight trading. The Japanese Nikkei 225 plummeted a staggering 7.3% (and the dollar is 1.7% lower against the yen), the Hang Seng dropped 2.5%, and the Shanghai Composite shed 1.1%. European markets are deep in the red as well, with Italy and Germany leading the way, both down 2.7%. In the United States, futures point to a negative open.
- The main catalyst for the ugly sell-off today appears to be the ugly flash PMI number out of China, which unexpectedly fell to 49.6 in May from 50.4 in April. Any number below 50 on the PMI indicates contraction, so the reading suggests that China's manufacturing sector is now contracting.
- Eurozone flash PMIs also indicated a continuing (but decelerating) contraction in Germany, where the index rose to 49.0 in May from 48.1; in France, where it rose to 45.4 from 44.4; and across the eurozone as a whole, where it rose to 47.7 from 46.9.
- The second estimate for U.K. first-quarter GDP suggested that the economy grew 0.3%, matching the initial estimate released on May 25. Consumer spending added only 0.1% to GDP, marking the weakest consumer reading since the third quarter of 2011.
- Shares of Hewlett-Packard are up 11 percent in pre-market trading after the company beat market expectations on first quarter earnings. The company reported earnings per share of $0.87, $0.06 better than expected, but revenues came in light at $27.6 billion versus the consensus estimate for $28.12 billion.
- Weekly jobless claims data are out in the U.S. at 8:30 AM ET. Economists predict initial claims fell to 345,000 in the week ended May 18 after spiking to 360,000 the week before. Follow the release LIVE >
- Following the jobless claims release is U.S. flash PMI, due out at 8:58 AM ET. Economists expect the index to fall to 51.2 in May from 52.1, indicating a continued, but slowing pace of expansion in American manufacturing.
- At 9 AM, FHFA house price index data for the month of March are released. Economists predict the index rose 0.8% in March after posting a 0.7% advance in February.
- Out at 10 are April new home sales data. Economists predict sales growth accelerated to 1.9% in April from 1.5% in March.
- Finally, at 11 AM, the Kansas City Fed releases its monthly survey of regional manufacturing conditions. Economists predict the headline index will rise to -4 in May from -5 last month, indicating a continued worsening of conditions, but at a slower pace than previously. Follow all of the data LIVE on Business Insider >
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