United States: The week ending May 20 had little economic data releases. During the week, housing data and manufacturing data were highlighted with the housing market continuing to disappoint. Housing starts fell 10.6 per cent in April, while existing home sales fell 0.8 per cent. Less new home building is a negative indicator for near term growth. Existing home sales are running lower than the first quarter average indicating a slow down. Overall, the housing market remains at depressed levels, with mortgage rates still low and job growth still weak, the trend is likely to persist. In terms of manufacturing, data during the week gave some indication of a slowdown in the sector. Industrial production was flat during the month of April, compared to an increase of 0.7 per cent in March. This was largely due to the disruption to motor vehicle production, which is being hampered by parts shortages in the aftermath of the Japanese disaster. The problem is likely to persist within the next few moths, but likely to improve as production in Japan picks up, or parts are sourced by US manufacturers. For the week May 23 to 27, additional housing data is expected as well as first quarter revisions. New home sales data is expected to reflect the weak housing market yet again. In terms of the first quarter revisions, gross domestic product, personal consumption and inflation will be keenly looked at following disappointing early first estimates.
Euro-zone: Inflation in the euro region quickened to 2.8 per cent in April from 2.7 per cent in March, in line with an initial estimate on April 29. Construction output in the euro zone fell 0.3 per cent in March from February, when it dropped 0.8 per cent. Ukraine's economy expanded 5.2 per cent in the first quarter from a year earlier after growing 3.3 per cent in the fourth
UK: Inflation quickened to 4.5 per cent in April, the highest level since 2008, from 4 per cent in March. Core inflation accelerated to a record 3.7 per cent from 3.2 per cent. United Kingdom retail sales climbed 1.1 per cent in April from March, when they rose 0.3 per cent as warm weather and the extra bank holiday for the Royal Wedding boosted consumer spending. UK unemployment claims rose in April at the fastest pace since January 2010, underlining the fragility of the recovery as government spending cuts and accelerating inflation sap consumer confidence. Jobless benefit claims increased by 12,400 from March to 1.47 million, the Office for National Statistics said in London.
South Africa: South Africa's inflation accelerated to 4.2 per cent in April from 4.1 per cent in March.
Japan: Japan's economy shrank an annualised 3.7 per cent in the first quarter, following a 3.0 per cent contraction in the fourth.
India: Food inflation eased to 7.47 per cent in the week ended May 7 from 7.7 per cent a week earlier.
Chile: Chile's economy expanded the most in 15 years in the first quarter, outpacing other major Latin American economies as consumer spending jumped and manufacturing recovered from the biggest earthquake in half a century. The economy grew 9.8 per cent from a year earlier.
Credit ratings changes
Greece: Greece's credit rating was cut three levels by Fitch Ratings, which said that even a voluntary extension of its bond maturities being studied by European Union policy makers would be considered a default. Fitch cut its rating to B+, four levels below investment grade, from BB+ and said that the country could face a further reduction in its creditworthiness. In an e-mailed statement Fitch said, "The rating downgrade reflects the scale of the challenge facing Greece in implementing a radical fiscal and structural reform programme necessary to secure solvency of the state and the foundations for sustained economic recovery."
Weekly International Equity Watch
US stocks fall on weak retailer earnings
The S&P 500 fell 0.11 per cent during the week ending May 20 dragged down by falling profits at the brand-name clothing retail stores Gap and Aeropostale. Shares of Gap Inc fell by 17.48 per cent on 20 May from the day before as the apparel chain announced a 22 per cent cut to its full-year profit due to rising costs. Aeropostale suffered a similar fate after its forecast for second-quarter profits came in lower than analysts' estimates leading to a daily drop in its share price by 14.25 per cent.
Euro-zone debt woes continue to weigh on the market
Fitch's downgrade to the rating on Greece's long-term sovereign debt by three notches to B+, also weighed on the market dropping the overall year-to-date return on the S&P to 6.01 per cent at a close of 1,333.27. The blue-chip Dow Jones Industrial Average lost 36.40 points during the week closing 0.29 per cent lower at 12,512 while the technology heavy Nasdaq Composite Index increased by 0.76 per cent to 2,803.32 but remains lower than the levels seen in the weeks before.
Asian stocks continue to fall on concerns of a global recovery
Asian stocks remained relatively unchanged during the week with most declines seen on the last trading day as Greece's debt crisis grew, Japan's economy contracted and on the release of disappointing economic data from the US. Compared to Friday May 13, the MSCI Asia Pacific index was down 1.15 per cent to a level of 134.61. Hong Kong's Hang Seng Index closed the week at 23,199.40, up 1.04 per cent while China's Shanghai Composite Index was slightly higher, rising by 0.33 per cent to a close of 2,774.57.
T&T stock market
TTSE Composite Index continues its advance
The Composite Index increased during the week ending May 20, rising by 0.29 per cent to a value of 921.66 as five stocks advanced and 8 declined. Supreme Ventures Ltd (SVL) was the weekly volume leader with 4,941,330 shares trading with a closing price of $0.14 marking a one cent decline in the price. National Commercial Bank of Jamaica (NCBJ) saw the largest price appreciation rising by 8.43 per cent during the week to a close of TT$1.80. TCL's share price fell by 7.41 per cent during the week to a close of TT$2.50 with a total of 100,912 shares trading for the week. Year-to-date, the TTSE Composite Index is up 10.29 per cent.