Memorial Day Holiday. LPL Financial and the markets will be closed Monday, May 25, in recognition of Memorial Day. We will resume normal business hours Tuesday, May 26.
Equities head lower. US stocks opened lower after Wednesday’s rally, following Asian and European market sell-offs. Initial weekly jobless claims came in at 2.4 million, for a total of 39 million claims since mid-March, once again showing how fragile the state of the economy is, even though states are slowly starting to open up. It’s a busy day for economic data, as various manufacturing and services Purchasing Managers’ Indexes (PMI) are set to be released, with Europe coming in a little better than expected.
Positive sign from Europe’s growth engine. A positive development from Germany emerged earlier this week as the ZEW survey of investor expectations for the next six months jumped more than 20 points to a five-year high and far exceeded expectations, even as the survey of current conditions plumbed record lows. If the European economic recovery is going to match the United States in the second half, Germany will be a key reason why. Still, we continue to believe the US economy is better positioned for recovery than Europe’s.
Encouraging real-time data. As the economy opens up, traditional economic data has been slow to pick up the changes. Today on the LPL Research blog, we look at some real-time data that indicates the US economy is on the road to recovery as businesses open up and people hit the roads.
More trouble for the US and China? US and China relations continue to be quite rocky. Earlier this week the NASDAQ made it harder for Chinese companies to initiate a public offering on the exchange, then Wednesday the Senate unanimously passed the Holding Foreign Companies Accountable Act. The bill would require a foreign company to certify it is not owned or controlled by a foreign government, and they must adhere to US accounting standards. This could make it harder for Chinese companies to list on US exchanges, and may add to hostility between the two global powers.
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