US Flash, that is to say preliminary, PMI for April came in at a better-than-expected 50.4 versus a downwardly revised 49.2 in March and a forecast 49

In the previous week we asked Axel Rudolph to comment on the US PMIs, here's what we got.

Axel Rudolph FSTA, Financial Analyst at IG, said: 'US Flash, that is to say preliminary, PMI for April came in at a better-than-expected 50.4 versus a downwardly revised 49.2 in March and a forecast 49. The April PMI thus hit its highest level since September 2002 and, together with a better-than-expected flash services PMI for April, shows that the US economy is once again expanding, having contracted over the past half year or so. Flash services PMI hit 53.7 in April, its third consecutive reading above 50, meaning that it is also expanding, versus a forecast 51.5 and a downwardly revised 52.6 in March.

Flash services PMI hit 53.7 in April, its third consecutive reading above 50, meaning that it is also expanding, versus a forecast 51.5 and a downwardly revised 52.6 in March

 

Axel Rudolph: The solid data plays into the hands of those market participants who believe that due to the underlying health of the US economy the Federal Reserve needs to keep raising its fed funds rate to at least 5% and keep these higher for longer, putting stock markets under pressure.'

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