Lower inflation is positive for financial assets:
Fed Paper: We examine explanations for the secular decline in interstate migration since the 1980s. After showing that demographic and socioeconomic factors can account for little of this decrease, we present evidence suggesting that it is related to a downward trend in labor market transitions–i.e. a decline in the fraction of workers moving from job to job, changing industry, and changing occupation–that occurred over the same period.
- US Jobless Claims rose to 360k last week vs 330k exp and 323k prev.
- Philly Fed declined to -5.2 vs +2 exp and 1.3 prev.
- US Housing Starts declined to 853k s 970k exp and 1036k prev. Building Permits, however, rose to 1017k vs 941k exp and 902k prev
- US CPI declined to 1.1% YoY in Apr vs 1.3% exp and 1.5% prev. The Core measure declined to 1.7% vs 1.8% exp and 1.9% prev
- Japan real GDP rose 0.9% QoQ in 1Q vs 0.7% exp and 0.0% prev. The deflator was still negative, however, so the nominal QoQ figure was +0.4% vs -0.3% prev. Capital spending declined 0.7% q/q but private consumption increased 0.9%.
- European Banking Authority is delaying its stress tests until 2014.
- Gold demand slumped ~13% in Q1 to hit the lowest level in three years. Global demand fell to 963 metric tons in the quarter, from 1,107.5 tons a year earlier; investors sold a record 182.1 tons of gold through ETPs in the three months through March (Bloomberg)
- Fri : Canada CPI, Mexico GDP, US UMichigan Confidence
- Mon: Chicago Fed National Activity Index, RBA Minutes
- Tue: UK PPI, CPI, Dudley Speaks, Japan Merchandise Trade Balance, Australia Westpac Consumer Confidence
- Wed: BoJ, BoE Minutes, Canada Retail Sales, Bernanke, US Existing Home Sales, China HSBC Flash Mfg PMI
- Thu: EU PMI, UK Retail Sales, GDP, US Jobless Claims, Preliminary Markit Mfg PMI