* Iran and US carry out strikes. * Series of US jobs data due this week. * Palladium is moving towards balance, Morgan Stanley says. By Ashitha Shivaprasad. Gold prices fell on Monday as escalating tensions in the Middle East heightened inflation concerns and reinforced expectations that central banks may keep monetary policy tighter for longer.
* Manufacturing PMI increases 1.3 points to 54.0 in May. * Supplier delivery performance slows for sixth consecutive month. * Iran war dominates comments from manufacturers, with many complaining about negative impact on supply chains. By Lucia Mutikani.
The US manufacturing sector expanded to its highest level in four years last month amid strength in demand and production, though price pressures remained elevated, two separate surveys showed Monday. The Institute for Supply Management's purchasing managers' index increased to 54 in May from 52.7 the month prior, reaching its highest reading since May 2022.
The Bank of Canada on Monday cautioned against putting too much weight on recent GDP data which showed two consecutive quarters of decline on an annualized basis. Senior deputy governor Carolyn Rogers said while two quarters of annualized contraction in GDP did meet one definition of a recession, the April advance estimate showed the economy most likely rebounded.
Friday's Q1 gross domestic product figures in Canada, including revisions, stunned everyone in consensus and at the Bank of Canada, said Scotiabank. Consensus had forecast about 1.5% quarter-over-quarter seasonally adjusted annual rate growth with a trimmed range between about 1% to 2% and the BoC's projection in the April Monetary Policy Report was 1.5%, noted the bank.
Canada's Q1 gross domestic product didn't just underperform expectations as it was "outright terrible," falling by 0.1% quarter-over-quarter annualized, said Rosenberg Research after Friday's GDP data. The consensus expectation was for a gain of 1.5%, due largely to an expected rebound in inventories after a large drawdown in Q4. Yet, GDP still fell, noted Rosenberg Research.
Private sector analysts
polled by Mexico's central bank slightly raised nearly all
forecasts for inflation this year and next, while trimming their
economic growth estimates, the bank said on ...
U.S. construction spending increased more than expected in April, boosted by single-family homebuilding, though rising mortgage rates amid the war with Iran continued to cast a shadow over the housing market. The Commerce Department's Census Bureau said on Monday that construction spending rose 0.4% after a downwardly revised 0.2% increase in March.
The Canadian Labour Force Survey this week will draw close scrutiny after it emerged that on Friday the economy slipped into a technical recession for the first time since 2020, said Societe Generale. Canada will release the LFS for May this Friday, at 8:30 a.m. ET.
U.S. construction spending increased more than expected in April, boosted by single-family homebuilding, though rising mortgage rates amid the war with Iran continued to cast a shadow over the housing market. The Commerce Department's Census Bureau said on Monday that construction spending rose 0.4% after a downwardly revised 0.2% increase in March.
The Institute for Supply Management's US manufacturing index rose to 54.0 in May from 52.7 in April, compared with expectations for a smaller increase to 53.0 reading in a survey compiled by Bloomberg as of 7:30 am ET. The index indicates faster expansion, and it is the highest reading since May 2022.
US construction spending rose by 0.4% in April, compared with a 0.3% increase expected in a survey compiled by Bloomberg and following a downwardly revised 0.2% increase in March.
U.S. manufacturing activity increased more than expected in May, hitting the highest level in four years, likely driven by businesses front-loading orders amid rising prices and shortages because of the war with Iran.
U.S. manufacturing activity increased more than expected in May, hitting the highest level in four years, likely driven by businesses front-loading orders amid rising prices and shortages because of the war with Iran. Manufacturing has now grown for five straight months, anchored mostly by an artificial intelligence spending spree.
New Orders Growing; Production Growing; Employment Contracting; Supplier Deliveries Slowing; Raw Materials Inventories Contracting; Customers' Inventories Too Low; Prices Increasing; Imports Growing; Exports Growing. TEMPE, Ariz. The report was issued today by Susan Spence, MBA, Chair of the Institute for Supply Management?? Manufacturing Business Survey Committee.
Canada's manufacturing sector growth was sustained in May as output, new orders and employment all increased, said S&P Global on Monday. The seasonally adjusted S&P Global Canada Manufacturing Purchasing Managers' Index, a composite index designed to provide a summary of operating conditions in manufacturing, remained in positive territory during May for a second successive month.
The Bank of Canada's Financial Stability Report of last week highlighted warning signs for the economy, especially from the housing sector, overextended asset valuations, and global turbulence, says Rosenberg Research.
Canada's manufacturing sector expanded for a second straight month in May as the potential for higher prices and product shortages due to the war in the Middle East likely boosted client demand, data showed on Monday. The ?S&P Global Canada Manufacturing Purchasing Managers' Index edged down to 52.9 last month from 53.3 in April.
* Iran and US carry out strikes. * Series of US jobs data due this week. * Palladium is moving towards balance - Morgan Stanley. By Ashitha Shivaprasad. Gold prices slipped on Monday as fresh strikes between Iran and the United States heightened inflation concerns and reinforced expectations that central banks may keep monetary policy tighter for longer.
It is rare for economists surveyed by Bloomberg to be so wide of the mark as they were in their predictions for Canada's gross domestic product released on Friday, said Commerzbank. Instead of growing by 1.5%, the real economy contracted by 0.1% in Q1 on a quarter-over-quarter annualized basis, noted the bank.
New AI Engine Forecasts CPI Ahead of Government Release LOS ANGELES, June 1, 2026 SoLo Funds, the largest AI-powered community banking solution in the U.S., today unveiled SoLo NowCAST?, a real-time consumer prediction engine built on financial behavior designed to anticipate inflation trends before the CPI is officially released.
China's central bank is making a broad push to increase the use of digital yuan at home and abroad, several industry sources said, setting Beijing on a different - and potentially competing - path from the United States in shaping the future of money.
Canadian Q1 gross domestic product showed the economy effectively stalled, contracting 0.1% quarter-over-quarter annualized, undershooting expectations, said TD after Friday's GDP data. The weakness was broad-based, noted the bank. Overall, the economy continues to muddle along with limited forward momentum, stated TD.
Canada's economy had a soft start to 2026, with real gross domestic product growth disappointing consensus expectations, while GDP was broadly unchanged in Q1 and the unemployment rate edged higher, RBC said.
Waldencast plc (WALD) today announced that it has entered into a definitive agreement to sell its Obagi Medical dermatological skincare and aesthetics business to Bridgepoint, one of the world's leading mid-market investors, in a transaction valued at up to $460 million, marking a significant step in Waldencast?s strategy to strengthen its balance sheet and focus on accelerating the global growth of M...
Growth momentum continued to soften in Q1 as downside risks persist in Canada, said Nomura after Friday's Q1 gross domestic product data. Real GDP fell 0.1% quarter-over-quarter annualized in Q1 after a revised 1.0% contraction in Q4, below consensus and the Bank of Canada's expectation, noted Nomura.
Euro area government bond yields rose on Monday as investors stayed wary of a potential U.S.-Iran deal to reopen the Strait of Hormuz, a development that could ease inflation pressures and reduce expectations for European Central Bank tightening. Borrowing costs tracked moves in oil prices - which were up 2.5% on Monday, but still below $95 - seen as a proxy for future inflation.
* Demand for European goods stagnated in May. * Britain's factories raised their prices at fastest rate since June 2022. * Private survey shows China's factory activity expanded in May. By Jonathan Cable and Leika Kihara.
Growth in euro zone manufacturing lost momentum in May as demand for goods stagnated and supply-chain disruptions linked to the Middle East war pushed input costs to their highest in four years, a survey showed on Monday.
Japan is on the verge of repeating the policy mishap that led to decades of economic stagnation as Iran war-induced inflation risks forcing the central bank to raise rates aggressively if it doesn't act on time, former Bank of Japan board member Makoto Sakurai said on Monday.
* Stagflation inevitable in Japan, ex-BOJ member Sakurai says. * Forgoing June rate hike could force rapid increases later. * Inflation may accelerate to around 3.5% from autumn, Sakurai says. By Leika Kihara.
The Bank of France will revise down its estimates for 2026 economic growth when it updates its forecasts in mid-June to reflect "the bad surprise" of the first quarter, the outgoing head of France's central bank said on Monday.
Euro area government bond yields rose on Monday as investors stayed wary of a potential U.S.-Iran deal to reopen the Strait of Hormuz, a development that could ease inflation pressures and reduce expectations for European Central Bank tightening. Borrowing costs tracked moves in oil prices, which were up 1.5% on Monday but below $95 and seen as a proxy for future inflation.
India's manufacturing sector expanded at its fastest pace in three months in May on sustained demand even as cost pressures were among the most intense in nearly four years and business optimism softened to its lowest since February, a survey showed on Monday.
* China outlines legal basis for unwinding completed foreign investment deals. * Rules designed to prevent 'Singapore-washing', overseas talent transfer in sensitive sectors. * Beijing can punish foreign firms if their home country restricts Chinese investment. By Laurie Chen.
* Private survey shows China's factory activity expanded in May. * South Korea's PMI hits fastest pace in five years. * Japanese firms saw input costs surge in sign of war impact. By Leika Kihara.
Bank of England policymaker Megan Greene anticipated a decline in the popularity of stablecoins, according to a report published on Monday. Greene expected tokenized deposits to ?probably take over? from stablecoins over the next five years, Reuters reported her comments from a conference in Croatia on Sunday.
China issued sweeping new rules on Monday tightening control of overseas deals that involve Chinese investors, technology, data and national security, a month after Beijing ordered Meta to unwind its acquisition of AI startup Manus.
China issued sweeping new rules on Monday, widening regulators' powers to scrutinise overseas deals involving Chinese investors, technology, data and national security, a month after Beijing ordered the unwinding of Meta's acquisition of AI startup Manus.
The United States and Vietnam reaffirmed their commitment to avoid currency manipulation in a joint statement issued by the U.S. Treasury and Vietnam's central bank following high-level consultations, the Treasury said over the weekend.
* RatingDog manufacturing PMI 51.8 in May vs 52.2 in April. * New export orders fall after four months of growth. * Price pressures of manufacturers ease. China's manufacturing sector expanded for a sixth straight month in May, although at a slower pace, as output and new orders remained solid and price pressures eased, a private survey showed on Monday.
The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes. The dollar index edged lower last week on hopes for a deal between the United States and Iran to open the Strait of Hormuz shipping lane for oil.
U.S. Federal Reserve Governor Jerome Powell on Sunday warned about the impact of a politicized Fed and made a broader call for the defense of democratic institutions in his first public remarks since the end of his eight-year stint as head of the central bank.
Japan's manufacturing sector expanded in May at a slightly slower pace, as record export order growth was offset by surging costs driven by the Middle East war and inflated output from stockpiling, a private survey showed on Monday.
* Powell urges defense of democratic institutions, warns they face a 'stress test' * Powell says politicized Fed woud lost public trust. * Fed's structure designed to shield policy from politics. By Howard Schneider.
The increased use of stablecoins could reinforce the dollar's global dominance, undermine some nations' ability to set monetary policy and even diminish the role of the euro, European Central Bank board member Isabel Schnabel said on Monday.
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