- The US labour market continues to tighten but the Fed is concerned that a cycle of perpetually low inflation expectations could reduce monetary policy flexibility.
- Sentiment in Europe continues to deteriorate, with inflation softening in April and the manufacturing sector in contraction.
- Despite zero growth in the CPI for the March quarter, the RBA opted to hold the cash rate at 1.50%, possibly preferring to remain on the sidelines during the election campaign.
- The UK has negotiated a Brexit reprieve, moving the deadline back to 31 October, meaning it will participate in European Parliament elections on 23 May.
- China’s March quarter GDP growth exceeded expectations, while investment spending has stabilised after falling through 2018.
Read the full Market Update prepared by Lonsec here.