1) US manufacturing activity in May speed up after 2-month slowdown
The U.S. manufacturing activity in May accelerated after slowing in the prior two months despite contract employment and firms continuing to face supply challenges. The Institute for Supply Management’s Manufacturing PMI in May was 56.1%, up from 55.4% in the prior month and also topped the Wall Street poll for a decline to 54.5%.
2) Deutsche Bank expects ECB to hike rates in 3Q
Deutsche Bank AG wrote in a note, estimating that the European Central Bank would decide on increasing its key interest rates by 50 basis points at one of its meetings in the third quarter of this year.
“September is more likely than July,” the German bank wrote, which is in contrast to the consensus among ECB officials for multiple 25 basis point hikes in upcoming meetings.
3) Oil prices fall after reports of Saudi ramping up output
Oil prices fell in the morning session of Asia trading hours on Thursday after the Financial Times reported that Saudi Arabia is prepared to raise crude production if Russia’s oil production significantly drops following the European Union’s embargo.
Brent crude fell 1.87% to $114.12 per barrel, while The West Texas Intermediate dropped 2.06% to $112.88 per barrel.
