Daily Wrap Up – 1 June

Manufacturing data for SMEs was below expectations in China. The Caixin PMI Index recorded only 49.6 points in May, marking the first contraction in factories output for almost a year. This weakness is likely to be temporary under constant signs of improvement in International Economy.
In Australia, more than expected retail sales after two consecutive months of declines didn’t help to erase the bleak outlook on the retail sector, and the Australian dollar falling more than 80 pips since the beginning of trading day against the US dollar. Retail sales in April rose 1% against expectations of a 0.3% rise.
In the UK, manufacturing PMI fell from a three-year high of 57.3 points to only 56.7 in May, while the sector saw strong growth in new orders and production as well as higher export orders. On the other hand, British Prime Minister and Conservative leader Teresa May lost some points in a poll ahead of next week's election, which will give Britain a boost in its Brexit talks.
US stocks rose in the beginning of US session in the wake of better-than-expected private employment numbers showing a continued improvement in the US labor market, which could boost interest rate opportunities when the Fed meets this month. The ADP Private employment Index added 253,000 jobs in May Compared to expectations of adding 185K jobs only.
The US president is due to announce today whether the United States is in the Paris Climate Change agreement, while some sources say Trump may withdraw from the agreement.
Mohamed Barkindo, secretary-general of OPEC, didn’t help oil prices. He said he didn’t rule out further cuts in oil production, but put more pressure on prices to stabilize near 48$ a barrel.