ECB Executive Board member Schnabel said the bank can no longer look through Iran war inflation as price pressures spread beyond energy, signalling further rate hikes without specifying a ceilingSummary: Source: Isabel Schnabel, ECB Executive Board memberSchnabel said the ECB can no longer overlook the inflationary impact of the Iran conflict as price pressures have spread beyond the energy sector and the risk of unanchored inflation expectations has risenShe said damage to energy infrastructure and global supply chains has altered price dynamics in a more lasting way, meaning a policy response may be required even if the conflict ends immediatelySchnabel declined to specify how many rate hikes would be needed, saying it is too early to say hikes will end after a certain number and that the ECB will continue assessing incoming data and Middle East developmentsShe characterised the Iran shock as increasingly acting as a global demand shock that raises production costs worldwide, distinguishing it from previous energy crisesThe European Central Bank can no longer treat the inflationary consequences of the Iran war as a temporary shock to be waited out, Executive Board member Isabel Schnabel said on Monday, signalling that rate hikes are coming and that their number remains open-ended.Schnabel’s argument rested on a key analytical distinction: the Iran conflict is no longer behaving like a conventional energy price spike. Damage to energy infrastructure and global supply chains has altered price dynamics in a more durable way, and the shock is increasingly functioning as a global demand shock that raises production costs across the board. That framing matters because it removes the standard central bank justification for inaction, namely that supply-side shocks are self-correcting and should be looked through.With inflation pressures now spreading beyond energy and the risk of expectations becoming unanchored rising, Schnabel said the ECB must act regardless of how the conflict evolves. She explicitly refused to set a ceiling on the number of hikes required, saying policymakers would continue to assess incoming data and regional developments before making each decision.The remarks represent a significant shift in tone from an institution that had previously leaned on conflict uncertainty as a reason for caution, and markets will read them as a green light for a more aggressive tightening path in the months ahead.—Schnabel’s remarks are materially hawkish and will reprice near-term ECB rate expectations. Her explicit statement that the bank can no longer look through the inflation impact, combined with a refusal to put a ceiling on the number of hikes required, removes the dovish optionality markets had been pricing around a conflict-driven slowdown. The characterisation of the Iran shock as a global demand shock rather than a transitory energy spike is the key analytical shift: it implies persistence, which argues against waiting for the conflict to end before acting. EUR/USD and short-end eurozone rates will be the primary transmission, with energy-intensive European industrial sectors facing a dual squeeze of higher input costs and tighter monetary conditions. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Schnabel’s comments on inflation signal a pivotal shift for the ECB and traders need to pay attention. The acknowledgment that inflation pressures are spreading beyond energy suggests the ECB is gearing up for more aggressive rate hikes. This could impact the euro’s strength against the dollar, especially if traders start pricing in a more hawkish stance. Watch for the euro’s reaction around key resistance levels; if it breaks above recent highs, it could indicate a stronger bullish trend. Conversely, if inflation data continues to surprise to the upside, we might see the ECB forced to act even more decisively, which could lead to volatility in both forex and equity markets. But here’s the flip side: if the market overreacts to these comments, we could see a short-term pullback in the euro as profit-taking kicks in. Keep an eye on the upcoming inflation reports and the ECB’s next meeting for any shifts in sentiment. The immediate focus should be on how these developments affect the euro-dollar pair, particularly around the 1.10 level, which has been a pivotal point recently. 📮 Takeaway Monitor the euro-dollar pair closely, especially around the 1.10 level, as further ECB rate hikes could drive significant volatility.

Japan’s Q1 capital spending rose just 0.047% year on year, sharply missing the 4.0% forecast and slowing from 6.5% in Q4, with an analyst warning the data points to a downward revision to Q1 GDP.Data post earlier, though I’ve duplicated below if you prefer:Japan Capital Spending Q1: 0.0% y/y (expected 4.0%, prior 6.5%)Also today:Japan manufacturing PMI eases to 54.5 in May. Cost pressures hit 32-month highSummary: Source: Japanese Ministry of Finance; analyst comments from Meiji Yasuda Research Institute and Mizuho SecuritiesJapan Q1 capital spending rose just 0.047% year on year, expected 4.0%, prior 6.5%; fell 2.0% on a seasonally adjusted quarterly basisCapital spending ex-software fell 1.4% year on year, expected 5.4%, prior 7.3%Manufacturer capex fell 0.4% year on year as information and communications equipment and automotive sectors pulled back after last year’s capacity expansionCapex hit a fresh quarterly record of 18.8 trillion yen in nominal terms despite the slowdownCompany profits rose 14.6% year on year, well above the 5.3% forecast; company sales rose 1.1%Meiji Yasuda Research Institute economist Kazutaka Maeda said results were weaker than expected and that the data suggests Q1 GDP may be revised down from the preliminary 2.1% annualised estimate; the revision is due June 8Mizuho Securities said monetary policy adjustments and Middle East tensions are likely to keep domestic capex growth subdued near termJapanese corporate capital spending ground to a near halt in the first quarter, rising just 0.047% year on year after four consecutive quarters of robust expansion, in a result that analysts say points to a downward revision of Japan’s preliminary first-quarter GDP estimate when revised data is published on June 8.Japan Q1 Capital Spending: 0.047% y/y expected 4.0%, prior 6.5%Japan Q1 Capital Spending ex-Software: -1.4% y/y expected 5.4%, prior 7.3%Japan Q1 Company Sales: 1.1% y/y prior 0.7%Japan Q1 Company Profits: 14.6% y/y expected 5.3%, prior 4.7%The Ministry of Finance data showed capex fell 2% on a seasonally adjusted quarterly basis, with manufacturer spending down 0.4% year on year as the information and communications equipment and automotive sectors scaled back following last year’s capacity expansion drive. In nominal terms capex still hit a fresh quarterly record of 18.8 trillion yen, reflecting the elevated price environment rather than volume growth.Kazutaka Maeda, economist at Meiji Yasuda Research Institute, said the results were weaker than expected and reflected a pullback from earlier strength, adding that the capex figures suggest the preliminary Q1 GDP reading of 2.1% annualised growth may be revised lower. He cautioned that while labour-saving investment demand should provide a floor, the trajectory from here will depend heavily on Middle East developments.The profit picture was sharply better than the capex story suggested, with company recurring profits rising 14.6% year on year against a 5.3% forecast, and sales up 1.1%. The gap between strong earnings and stalled investment points to corporate caution rather than financial constraint, a tension that sits at the centre of Prime Minister Sanae Takaichi’s economic agenda.Takaichi’s government has been pushing firms to deploy accumulated cash reserves into productive investment through tax credits, increased public spending on strategic sectors including semiconductors and shipbuilding, and a revised corporate governance code designed to pressure boards into justifying idle balance sheet cash. Japan’s official target is to double annual corporate capex to 200 trillion yen by 2040.Near-term prospects remain clouded. Mizuho Securities said in a recent report that monetary policy adjustments and ongoing Middle East tensions are likely to keep domestic capital investment growth subdued, a view that the Q1 data does little to contradict.-The near-zero capex print feeds directly into the June 8 GDP revision and raises the probability that Japan’s preliminary 2.1% annualised Q1 expansion is marked down, which would complicate the BOJ’s case for a June rate hike even as the manufacturing PMI and price data argue for one. Yen and JGB markets will weigh the tension between a strong profit result, up 14.6% year on year, and the stall in actual investment deployment, which suggests corporate caution rather than balance sheet inability. Mizuho’s warning that Middle East tensions and monetary policy adjustments will keep capex growth subdued near-term is the key forward signal, and sits awkwardly against Prime Minister Takaichi’s 200-trillion-yen investment doubling target for 2040. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Japan’s capital spending growth is a red flag for traders: missing forecasts could signal economic weakness. The 0.047% increase year-on-year, far below the expected 4.0%, suggests that businesses are pulling back on investment. This slowdown from 6.5% in Q4 raises concerns about Japan’s economic momentum and could lead to a downward revision of Q1 GDP. Traders should keep an eye on how this impacts the yen and Japanese equities, as a weaker economic outlook might prompt the Bank of Japan to maintain or even expand its accommodative policies. If the yen weakens further, it could create opportunities in forex pairs like USD/JPY, especially if it breaks above key resistance levels. On the flip side, if capital spending rebounds in the coming quarters, it could indicate a recovery, so watch for any revisions in upcoming economic reports. For now, monitor the 0.0% level in capital spending as a critical threshold; a sustained drop below this could trigger more significant market reactions. 📮 Takeaway Watch for Japan’s capital spending to hold above 0.0%—a drop could signal deeper economic issues and impact the yen and equities.

Kuwaiti air defenses are currently confronting hostile missile and drone attacks. The General Staff of the Army notes that if explosion sounds are heard, they result from the air defense systems intercepting the hostile attacks. -War is ongoing, Oil positive. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Kuwait’s air defense operations amid missile and drone attacks are shaking up oil markets right now. With ongoing conflict in the region, traders should keep a close eye on oil prices, which are likely to react to any escalation. Historically, geopolitical tensions have driven oil prices up, and this situation could be no different. If the conflict intensifies, we might see a spike in crude oil prices, especially if supply routes are threatened. It’s worth noting that the market is already sensitive to any disruptions, and a sustained increase in oil prices could impact related assets like energy stocks and ETFs. On the flip side, if the situation stabilizes quickly, we could see a pullback in oil prices, so traders should monitor key levels closely. Watch for any announcements from the Kuwaiti government or military that could signal a change in the conflict’s intensity. Keeping an eye on the daily oil price movements and any significant news updates will be crucial in navigating this volatile environment. 📮 Takeaway Monitor oil prices closely; any escalation in Kuwait could push prices higher, while stabilization might lead to a pullback.

Reports of another likely ballistic missile interception near Ali Al Salem Airbase, KuwaitJapan Q1 capex growth stalls at near zero, raising risk of GDP revision lowerECB’s Schnabel says Iran war inflation too broad to look through, flags rate hikesChina tightens outbound investment rules to curb technology and data transfersRubio pushes Lebanon ceasefire but US says Hezbollah blocked deal on Iran’s ordersIs Palantir a Buy?China May private survey Rating Dog Manufacturing PMI 51.8 (expected 51.4, prior 52.2)Reports of Iran drafting its own deal amendments as Tehran pushes back on Trump’s termsPBOC sets USD/ CNY reference rate for today at 6.8167 (vs. estimate at 6.7643Z)Nasdaq technical analysis today at investingLive.comJapan manufacturing PMI eases to 54.5 in May. Cost pressures hit 32-month highPowell warns Fed independence at risk if officials can be removed over policyBitcoin Futures Analysis Today: BTC Stalls Below 74,535Japan Capital Spending Q1: 0.0% y/y (expected 4.0%, prior 6.5%)UK businesses remain deeply downbeat on outlook despite slight mood lift in MayAustralia manufacturing PMI slips to 50.7 in May as new orders hit seven-month lowIran is calling the resignation report fake news.Iran’s president resigns, says IRGC seized control and cut him out of decisionsUS Globex open for Sunday evening trade and the new week. Oil up, Stocks little change.Berkshire Hathaway to buy Taylor Morrison in $8.5bn all-cash housing dealUS military guiding ships through Strait of Hormuz. NY Times says 70 in last 3 weeks.US Commerce Department moves to block Nvidia and AMD chip flows to Chinese overseas unitsIran says no nuclear commitments made as talks with US continueChina manufacturing PMI falls to 50 in May as export orders contractMonday open FX. Indicative rates 01 June 2026Should you sell DELL stock or move your stop higher? Practical lesson in trade managementWeek in Focus: 1st – 5th June: Highlights include US ISMs, NFP, EZ HICP & CAD jobsUS Bessent on Iran blockade says anything that is taken off will be taken off slowlyAt a glance:Oil opens higher as US-Iran deal remains elusive; Trump says he is in no hurry, warns military action could resume if talks collapseIran’s President Pezeshkian reportedly asked to resign, citing IRGC takeover of decision-making; Iranian state media and government deny the reportRubio spoke with Lebanese President Aoun and Israeli PM Netanyahu on ceasefire initiative; US official warns failure could give Israel green light to resume Beirut strikesMissile and drone attacks reported near Ali Al Salem Airbase in Kuwait; Kuwaiti air defences engagedUS Navy quietly escorted around 70 vessels through Hormuz over three weeks, averaging three per day against a pre-war baseline of 100-plus dailyChina RatingDog/S&P Global Manufacturing PMI eases to 51.8 in May from 52.2; input inflation slows for first time in six months but remains above long-run averageECB’s Schnabel signals rate hikes ahead, says Iran war inflation too broad to look throughFed’s Kashkari warns supply chain and inflation recovery could lag even after Hormuz reopens; BOJ’s Koeda flags oil as negative supply shock for JapanUS closes AI chip export loophole; hundreds of thousands of advanced Nvidia and AMD chips may have reached Chinese firms via overseas subsidiaries over the past yearBerkshire Hathaway agrees to acquire Taylor Morrison for $8.5bn, a 24% premium to Friday’s closeUSD edges higher; regional equities extend record run; US futures open soft before turning positiveOil prices climbed at the open and regional sentiment stayed cautious as the Iran-US nuclear framework showed fresh signs of strain, a reported presidential resignation in Tehran rattled confidence in the diplomatic track, and Washington moved to close a year-long loophole that had been quietly feeding China’s AI ambitions.Iran: the deal and the denialThe session’s dominant story was a report, first published by Iran International, that President Masoud Pezeshkian had submitted a resignation to the Supreme Leader’s office, citing his exclusion from major decisions and the Islamic Revolutionary Guard Corps’ effective takeover of government. According to the report, Pezeshkian told Khamenei directly that he and his administration had been sidelined, leaving him unable to fulfil his responsibilities as president.Iran’s Government Information Council pushed back hard, describing the story as foreign propaganda designed to sow discord and insisting Pezeshkian was actively running the country. Iranian state media also denied the report. The denial did not land cleanly. The specific detail in the original account, that the IRGC had assumed control of all major decision-making and that the elected presidency had been rendered ceremonial, was too precise and too politically consequential to be dismissed as routine disinformation, and markets treated it accordingly.The timing is acutely damaging for the negotiations. Washington has been engaging with Iran’s civilian foreign ministry on a framework that would extend the ceasefire, begin reopening the Strait of Hormuz and launch structured nuclear talks. If Pezeshkian’s account is accurate, the body the US has been negotiating with has been operating without a mandate from the institution that controls Iran’s missiles, its naval forces in the strait, and its regional proxies. That is not a technicality. It is a fundamental question about whether any agreement reached with Iranian civilian officials can be implemented or honoured.Trump, speaking to Fox News on Saturday, said he was in no hurry to reach a deal, adding that a rushed negotiation would produce a bad outcome. He stressed he was pressing for a framework that would permanently prevent Iran from acquiring a nuclear weapon and warned that if talks collapsed, military action could resume. Separately, a US official told Axios that the failure of Secretary Rubio’s Lebanon ceasefire push, which sought a Hezbollah halt to attacks as a first step toward de-escalation, could lead Washington to give Israel a green light to resume strikes on Beirut targets. Reports of missile and drone attacks near Ali Al Salem Airbase in Kuwait added to the session’s geopolitical noise.Shipping: a trickle, not a reopeningThe New York Times reported that US Central Command had quietly coordinated passage for around 70 commercial vessels through the Strait of Hormuz over three weeks, with ships running dark to avoid Iranian detection. The figure is higher than some analysts had expected but needs

As a reminder, the mood when we returned last week was that the deal was “imminent”. One week later, we’re still caught in the same negotiating position once again.The US and Iran are continuing exchanging military blows in trying to posture ahead of the supposed framework agreement or memorandum of understanding (MOU). However, the latest communique from both sides continue to indicate a standoff between them.US president Trump wants Iran to at least commit to a baseline guarantee on nuclear/uranium. And that sees a constant change in the terms that both sides are seeking from the deal/MOU. As for Iran, they continue to defend that they will not make any commitments on nuclear/uranium. That led to chief negotiator Ghalibaf blasting the US for “frequent changes” to the agreement terms.Both sides continue to maintain that they are “very close” to signing off on a deal/MOU. But again as mentioned last week, nothing can be agreed until everything is agreed upon.It is not just one thing that needs to stick, there are four key terms that both sides need in order to proceed to the next step. And more importantly, these terms need to hold for the 60-day duration set out for the next round of negotiations.From last week:US and Iran know what the puzzle pieces are, but can they fit them all together?Deal or no deal? Markets continue to eye US-Iran headlines ahead of the weekend This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The ongoing military tensions between the US and Iran are keeping traders on edge, particularly in the energy markets. With negotiations dragging on, any sudden escalation could spike oil prices, impacting everything from crude futures to related equities. Traders should be aware that geopolitical risks often lead to volatility, and the current standoff could trigger significant price movements in the short term. Look at the recent price action in crude oil; if it breaks above key resistance levels, we might see a rally that could affect not just oil but also currencies tied to oil exports, like the Canadian dollar. Conversely, if talks progress and tensions ease, we could see a pullback. Keep an eye on the daily charts for crude oil and related ETFs, as well as any news from the negotiations. The real story here is how quickly sentiment can shift, so stay nimble and ready to react to headlines. 📮 Takeaway Watch for crude oil prices; a breakout above resistance could signal a rally, while easing tensions might lead to a pullback.

I think that pretty much sets the tone of what we can expect this week. That being another week where we go back and forth on the same issues awaiting both sides to strike a compromise, just so that we can get on with the optics of a deal. Trump’s full tweet:”Iran really wants to make a deal, and it will be a good one for the U.S.A. and those that are with us. But don’t the Dumocrats, and various seemingly unpatriotic Republicans, understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively “chirping,” at levels never seen before, over and over again, that I should move faster, or move slower, or go to war, or not go to war, or whatever. Just sit back and relax, it will all work out well in the end – It always does! President DJT”He doesn’t seem to be in a hurry to rush an agreement just for the sake of it at least. But if he is going to be pushy about wanting Iran to make some baseline promises/commitments on nuclear before signing off, this standoff might last for quite a while.With the conflict already stretching on for three months, Iran is clearly just as stubborn and obstinate as Trump is.Besides the above, the US and Iran also need to agree on four key terms in maintaining the deal at hand. And in that lieu, it may not be as simple as it looks. If any one of those terms break, the whole agreement falls apart. From earlier: Back from the weekend and still no closer to a US-Iran deal This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight This week’s market sentiment hinges on the ongoing negotiations, and here’s why that matters: uncertainty often leads to volatility. As traders, we know that indecision can create choppy price action, especially in the forex and crypto markets where sentiment shifts rapidly. If the negotiations yield no clear direction, expect a range-bound market, which could be frustrating for day traders looking for clear signals. Keep an eye on key economic indicators and news releases that could sway sentiment. If a compromise is reached, we might see a bullish breakout, but if talks stall, prepare for a potential sell-off. The real story is how these negotiations impact risk appetite; a lack of resolution could lead to increased volatility across correlated assets like gold and major currency pairs. Watch for any sudden shifts in trading volume or news headlines that could trigger rapid moves. Overall, stay nimble and ready to react. The next few days could be pivotal, so monitor the news closely and adjust your positions accordingly. 📮 Takeaway Watch for any news on negotiations this week; a breakthrough could trigger a bullish breakout, while stagnation might lead to increased volatility.

Retail sales -0.3% vs -0.5% m/m expectedPrior -2.0%; revised to -0.3%The report here needs to be taken into context alongside the revision to the March numbers as well. There was a sharp revision higher to March retail sales, so that at least paints a better backdrop to work with during the onset of the Middle East conflict. So, the added drop in April doesn’t hurt as badly and if anything it also comes in better than estimated.The adjustment also sees April retail sales being down by just 0.3% in real terms compared to the same month last year. That owes much to a drop in petrol station sales, which are seen down over 10% annually (including sales in petrol station shops).And even when you put a comparison to the previous month, petrol station sales were still down 4.0% in real terms. The drop there is partially offset by a pick up in retail sales in the food sector (+3.2%) while non-food retail trade fell by 2.2% in real terms on the month.All in all, it points to demand conditions being impacted by higher prices especially in non-food retailing. Food store sales may have picked up due to households also stocking up on groceries just in case we do see prices go up further in the weeks ahead. That as the US-Iran conflict continues to rage on and hit at input costs while gripping supply chains. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Retail sales dropping 0.3% might seem concerning, but here’s why it matters: revisions to March figures show a stronger consumer backdrop. The unexpected revision of March retail sales to a 0.3% increase suggests that consumer spending isn’t as weak as it appears. This could mean that traders should be cautious about overreacting to the latest data. Instead, consider how this might impact the broader economic outlook and related markets. If consumer confidence remains steady, we could see a rebound in sectors like retail and consumer discretionary stocks. Watch for how this plays out in the coming weeks, especially as we approach key earnings reports. On the flip side, if the market interprets this as a sign of slowing growth, we might see volatility in equities and a flight to safer assets like bonds. Keep an eye on the S&P 500 and its reaction to these retail figures, particularly if it tests support levels around recent lows. The next few trading sessions will be crucial for gauging market sentiment. 📮 Takeaway Monitor the S&P 500 for potential support around recent lows; a rebound could signal renewed consumer confidence despite the retail sales dip.

House prices -0.6% vs -0.2% m/m expectedPrior +0.4%House prices +1.7% vs +2.2% y/y expectedPrior +3.0%The average price of a dwelling in the UK eased slightly in May to £278,024, as Nationwide records a price drop of 0.6% on the month in May. Housing sentiment was more resilient in April but it seems that the uncertainty from the Middle East conflict is starting to bite now. That said, house prices are still keeping higher compared to the same month a year ago – even if the measure has declined modestly.Nationwide notes that:”Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected. Indeed, consumer confidence has weakened noticeably since the start of the conflict, with GfK’s headline index falling to its lowest level since late-2023 in April, with only a marginal increase in May.While market interest rates have risen in recent months, the impact on affordability has so far been modest. Indeed, swap rates, which underpin fixed‑rate mortgage pricing, remain well below the highs reached in 2023 and are broadly in line with levels prevailing in 2024, implying only a partial reversal of earlier gains.This provides some confidence that, if the latest shock passes relatively quickly, and energy prices normalise in the quarters ahead, any near-term softening in the housing market will also prove short lived.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight UK house prices just dropped 0.6%, and here’s why that matters: This decline, sharper than the expected 0.2%, signals potential cooling in the housing market, which could ripple through related sectors like construction and consumer spending. With the average dwelling price now at £278,024, traders should keep an eye on how this affects broader economic indicators, especially as we approach key inflation reports. A sustained downturn could lead to shifts in monetary policy, impacting interest rates and, consequently, forex pairs tied to the GBP. But don’t overlook the flip side—while some may see this as a sign of economic weakness, it could also present buying opportunities for investors looking for undervalued assets. Watch for any rebounds in housing sentiment or government interventions that might stabilize the market. Key levels to monitor include the previous month’s price of £278,024 and how the market reacts in the coming weeks as more data comes in. 📮 Takeaway Keep an eye on the £278,024 level; a sustained drop could signal broader economic shifts impacting GBP pairs and related markets.

GDP +0.7% vs +0.6% q/q expectedPrior +0.1%; revised to +0.2%GDP (adjusted for sporting events) +0.4% q/qPrior +0.5%Looking at the details, it is the industrial sector that helped to bring up growth in the first quarter of 2026. The sector grew strongly (+1.3%) with manufacturing (+1.5%) in particular being a key component to growth conditions. That said, it was not all good in the industrial sector as chemical and pharmaceutical declined strongly during the quarter (-3.4%).As for the services sector, overall conditions remain relatively subdued. The sector posted mild growth (+0.2%) on the quarter amid positive contributions from transport (+1.9%) and financial services (+1.3%). However, that is largely offset by a decline in the retail sector (-1.3%) with private consumption being flat on the quarter.Besides that, domestic demand remains weak (+0.1%) while government consumption was the one that helped to bring things up with a above-average showing in Q1 2026 (+0.9%). This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight GDP growth of 0.7% beats expectations, but here’s the kicker: industrial strength is driving this momentum. For traders, this uptick in GDP, especially from the industrial sector, signals potential bullish trends in related equities and commodities. With manufacturing growth at 1.5%, sectors tied to industrial output could see increased demand. Watch for stocks in manufacturing and materials to react positively. However, it’s worth noting that the revision of prior GDP figures could indicate volatility in market sentiment as traders adjust their positions. Keep an eye on the upcoming economic indicators that could further influence market direction, particularly any shifts in consumer spending or inflation metrics. If the industrial sector continues to outperform, we might see a broader rally across related assets. In terms of technical levels, monitor key resistance points in industrial stocks and commodities that could signal a breakout or reversal. The next few weeks will be crucial for gauging whether this growth trend can sustain itself or if it’s just a temporary spike. 📮 Takeaway Watch for industrial sector stocks to react to the GDP growth; key resistance levels could signal breakout opportunities in the coming weeks.

May manufacturing PMI 51.2 vs 52.0 expectedPrior 51.7April was defined by firms rushing orders to stock up, so naturally May is showing some of that unwinding as new orders placed with manufacturers declined. The standout details from the report though are that supply chain delays are intensifying as product shortages were reported, and also input prices rising further to a greater degree.The former sees a further deterioration in vendor times, which was the greatest seen in four years, as the Middle East conflict continues to weigh. The report points out that: “Panellists noted that delays on maritime routes were considerable, product shortages widespread and prices for inputs, especially for oil and oil-derivatives were rising precipitously.”And on the inflation front: “Prices paid for inputs by manufacturers rose to the greatest degree for four years and amongst the strongest rates in the survey history. The acceleration in inflation seen in the past three months has also been unprecedented since data were first collected in early 1998.”As higher input cost inflation becomes more embedded, selling charges also increased on the month as firms look to try and protect their margins further. Of note, the degree of charge inflation remains elevated in the context of the survey history even if a little softer than April’s near three-and-a-half year high. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight May’s manufacturing PMI dipped to 51.2, and here’s why that matters: This drop signals a slowdown in manufacturing activity, which could impact broader economic sentiment. With new orders declining, traders should be cautious about sectors reliant on manufacturing, particularly industrials and materials. The uptick in supply chain delays indicates that inflationary pressures might persist, complicating the Fed’s interest rate decisions. If this trend continues, we could see a ripple effect across equities and commodities, especially if firms begin to cut back on production. Keep an eye on the 50 level in PMI as a psychological threshold; falling below could signal contraction. On the flip side, this could present a buying opportunity for those looking at consumer staples or tech, which might benefit from a shift in spending as consumers adapt to tighter supply conditions. Watch for how these dynamics play out in the upcoming earnings reports, particularly from companies in the manufacturing sector. 📮 Takeaway Monitor the 50 PMI level closely; a drop below could indicate broader economic contraction, impacting sectors like industrials and materials.