Tuesday's Markets Update (May 16, 2023)

17 May 2023 by rate3

On Tuesday, the retail sales data issued by the Census Bureau disappointed traders, which dragged NASDAQ (o: 12393, c: 12343) and BTC (o: 27060, c: 26933) down.

Retail sales in the US rose 0.4% mom in April, bouncing back from two months of declines, but below market forecasts of a 0.8% increase. Motor vehicle and part dealers' sales were up 0.4%. Other increases occurred in building material (0.5%); food services (0.6%); retailers (3.6%). However, gasoline station sales unexpectedly fell 0.8%, and food store sales declined 0.2%. Clothing (-0.3%); electronics (-0.5%); furniture (-0.7%) also experienced decreases. Core retail sales, which exclude automobiles, gasoline, building materials, and food services, increased faster at 0.7%, indicating sustained consumer demand.

Other Markets Updates:

Germany's ZEW Indicator of Economic Sentiment dropped to -10.7 in May, the lowest in five months, much worse than the expected -5.3. These declines partly stem from expectations of future interest rate hikes by the European Central Bank and concerns about a potential default by the United States, leading to increased uncertainty in international economic development. Consequently, financial market experts anticipate a further worsening of the already unfavorable economic situation in the next six month, mentioning the potential for a recession in the German economy.