Market Movers
In the euro area we expect M3 growth to have increased to 4.9% y/y in April, from 4.6% y/y in March. For the first time since 2012, we forecast a non-negative annual growth rate in credit to non-financial corporations (NFCs) and bank lending to households should also improve further.
Italian and Spanish preliminary inflation data for May will be released today and thus give an early indication on the print for the euro area as a whole. German inflation (usually the first indication on euro-area inflation) will not be released until next week.
We expect US Q1 GDP growth to be revised lower today as trade data suggest that net exports were a drag on growth and that the contribution from inventory accumulation was lower than first estimated by the BEA.
The decline in the preliminary reading of May University of Michigan consumer sentiment sent US rates lower. We will get the final release today and we expect a slight rebound to 89. This would leave consumer sentiment almost 7 points below the April reading but on a longer-term horizon still at a healthy level.
In Scandinavia both Denmark and Sweden will release Q1 GDP today.
To Read the Entire Report Please Click on the pdf File Below