Chinese banks extended CNY 0.73 trillion in new yuan loans in April 2024, missing market estimates of CNY 1.2 trillion and declining sharply from CNY 3.1 trillion in March. The latest figure was the smallest amount since July 2023, as April is usually a low season for new credit even with a new re-lending tool from the People's Bank of China. For the first four months of the year, data from the central bank showed a total of CNY 10.19 trillion in new loans. Meanwhile, total social financing, a broad measure of credit and liquidity, logged a negative reading of CNY 200 billion, the first contraction since January 2002, compared with CNY 4.87 trillion in March. Broad M2 money supply rose by 7.2% from a year earlier last month, less than forecasts and March's figure of 8.3%. Growth in outstanding yuan loans came in at 9.6%, holding steady for the second straight month while staying at a record low.

China's producer prices declined by 2.5% yoy in April 2024, compared with market forecasts of a 2.3% fall and following March's figure of a 2.8% decrease. It marked the 19th straight month of contraction in factory-gate prices, underlining persistent economic uncertainty despite multiple support measures from the government. Cost of means of production continued to drop (-3.1% vs -3.5% in March), dragged further by mining (-4.8% vs -5.8%), raw materials (-1.9% vs -2.9%), and processing (-3.6% vs -3.2%). In addition, prices of consumer goods remained weak (-0.9% vs -1.0%), with costs falling more for food (-0.8% vs -1.3%) and durable goods (-1.9% vs -1.8%) while prices of daily use goods were muted (0.1% vs -0.1%) and inflation was stable for clothing (at 0.3%). On a monthly basis, producer prices fell 0.2%, the sixth straight month of retreat, after a 0.1% decline in March. Considering the first four months of 2024, producer prices shrank 2.7%.

The University of Michigan consumer sentiment for the US fell to 67.4 in May 2024 from 77.2 in April, the lowest in six months and missing market expectations of 76, preliminary estimates showed. Inflation expectations for the year-ahead increased to 3.5%, the highest in six months from 3.2% in April. Also, the five-year inflation outlook hit 3.1%, the highest in six months, from 3.0%. Finally, both current conditions (68.8 vs 79 in April) and expectations (66.5 vs 76) declined. Consumers expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead.

US stocks closed mixed on Friday, as recent data brought down expectations for Fed interest rate cuts. The S&P 500 added 0.1% and the Dow Jones marked an 8-day winning streak, advancing 124 points, while the Nasdaq ended marginally lower. Michigan consumer sentiment fell to a 6-month low driven by a sharp uptick in year-ahead inflation expectations. This added up to fresh comments from a Fed official advocating a cautious stance on lowering interest rates, as they weigh surprisingly strong inflation data this year. Among megacap stocks, Nvidia gained 1.3% while Tesla dropped by 2%. Novavax shares soared 98% after the vaccine maker announced a multi-billion dollar deal with Sanofi to co-commercialize its Covid vaccine starting next year. Zeekr surged 34.5% above its initial public offering price of $21 a share, marking a strong debut for the Chinese electric vehicle company. On the week, the S&P 500 rose 1.3%, the Dow Jones added 1.9%, and the Nasdaq gained 0.5%.

Employment in Canada rose by 90.4K in April 2024, the most in 15 months, following a 2.2K decrease in March and surpassing forecasts of 18K. Full-time positions increased by 40.1K while part-time jobs rose by 50.3K. Employment gains were widespread across various industries within the services-producing sector, particularly in professional, scientific and technical services (+26,000; +1.3%), accommodation and food services (+24,000; +2.2%), health care and social assistance (+17,000; +0.6%) and natural resources (+7,700; +2.3%). However, there were declines in the goods-producing sector, notably utilities (-5,000; -3.1%). Across Canadian provinces, employment increased in Ontario (+25,000; +0.3%), British Columbia (+23,000; +0.8%), Quebec (+19,000 +0.4%) and New Brunswick (+7,800; +2.0%).

The US government's budget surplus in April 2024 expanded to $210 billion from $176.2 billion a year earlier, driven by higher tax receipts that outpaced increased spending. April's surplus was up 19% from the same period in 2023. Outlays increased by 23% to $567 billion, while receipts rose by 22% to $776 billion, boosted by higher tax revenue from individuals and businesses. Economists had anticipated a surplus of $244 billion for April. In the first six months of the fiscal year, the deficit decreased by $70 billion, or 8%, to $855 billion. Receipts for the period grew by 10% to $2.964 trillion, while outlays rose by 6% to $3.819 trillion. Interest costs on the national debt, which increased by 36% to $624 billion year-to-date, remained a significant component of outlays, second only to the Social Security program for seniors in individual line item expenses.