US session data reviewed - Nomura

Analysts at Nomura offered a review of the overnight data from the US session.

Key Quotes:

"Initial jobless claims: Initial unemployment insurance claims have stabilized around the historical low after a continued downtrend during the recovery. For the week ending 6 May, the four-week moving average of initial claims was little changed at 244k, down 1k from the prior week’s reading. This recent trend appears consistent with other labor market indicators, such as a steady gain in nonfarm payroll employment and low levels of involuntary worker separations. Continuing claims have decreased substantially over the first four months of the year, reflecting a similar decrease in the unemployment rate from the monthly household employment survey. The initial claims release tomorrow, by overlapping with the monthly employment survey period, may provide some indication of the continued strength in the labor market."

"Philly Fed Survey: As did other regional surveys, the Philly Fed survey indicated continued moderation in business sentiment in April. Its topline general business activity index dropped to 22.0 from 32.8 in March. Although still an elevated reading, the topline index shows signs of softening from the high readings after the election. New orders and shipments sub-indexes both declined notably in April from March readings. In Q1, the growth in spending data did not accelerate materially despite heightened business sentiment. Moreover, continued policy uncertainty and the prospect of delays in delivering the promises made by the current administration may continue to affect manufacturers’ sentiment. We think it likely that the Philly Fed business activity index will continue to show moderation, and forecast a reading of 22.0 in May (Consensus: 18.5)."