Summary
The week's economic indicators reveal varied sentiments across regions. US consumer confidence is expected to remain positive, contrasting with the Euro area's improving but still negative sentiment. Turkish and Argentine economic confidence is projected to improve, albeit remaining negative. Industrial sentiment in the Euro area is negative but improving, with the service sector expanding. Chinese and US purchasing manager's indices are expected to rise. Korean industrial production is slowing but still growing, while Japan's continues to decline.
GDP growth rates for the UK and the US are anticipated to contract and expand, respectively. Inflation data suggests a decrease in the US core PCE price index but a reversal to positive figures in Singapore and negative trends in France and Italy.
In the energy sector, ENI plans to decrease capital expenditure while increasing returns to shareholders. The company forecasts growth in LNG and upstream production until 2030. Despite concerns from OPEC and US lawmakers about investment uncertainty, mergers and acquisitions in the oil industry increased significantly in 2023, leading to larger companies with more assets.
The Dutch Central Planning Bureau's world trade monitor indicates mixed import and export trends among advanced and emerging economies. Industrial production globally saw minimal growth, with notable declines in Europe and Japan.
The US Federal Reserve opted to keep interest rates unchanged but lowered rate projections for the next two years, with discussions about potential rate cuts before summer. The Bank of England hinted at rate cuts in June, contrasting with rate cuts initiated by the central banks of Mexico and Brazil, while the Turkish central bank raised rates unexpectedly.
Despite considerations for rate cuts, the Fed upgraded its inflation projections, potentially delaying easing measures if inflation accelerates.
